Labor law can also protect the employer. 10 ways to optimize employment contract terms

• The probationary period allows you to assess the employee's skills and fit within the team.

• Flexible working hours enable better adjustment of the schedule to the company's needs.

• Averaging working time allows for greater flexibility without additional costs.

• Confidentiality and loyalty clauses protect the company's sensitive information.

• Non-compete clauses protect the company from losing clients and know-how.

• Clear termination procedures minimize the risk of disputes.

• Work regulations approved by Arbeidstilsynet standardize company rules.

• Absence reporting routines streamline company operations.

• Fixed-term contracts and hour banks provide flexibility for projects.

• Hiring employees from outside Norway reduces employment costs.

Here are ten methods worth considering.

The probationary period (prøvetid) is a time when both the employer and employee can check if the cooperation is working well. For the company, it is an opportunity to assess the candidate's skills, work style, and fit within the team, and for the employee – to see if the work environment suits them.

Example? Suppose you hire a new project manager (prosjektleder) for a six-month probationary period. During this time, you can check if they understand the projects well, cooperate with other managers, and have authority among other employees. If it turns out during this period that working with them is not going smoothly, it is easier and safer to end the cooperation than if you had signed a contract without a probationary period.

The probationary period also allows for gradual onboarding of the employee. You can set smaller goals for the first months and observe how the candidate achieves them. This enables learning in practice without significant risk to the company.

A well-constructed probationary period clause in the contract should specify its duration, the rules for evaluating the employee, and the consequences of ending the probationary period – both in the case of a positive and negative assessment. This way, all parties know exactly what to expect, and potential misunderstandings are minimized.

An employment contract can specify exactly how many hours per week the employee works, but it can also allow for flexibility. This enables the company to better adapt the schedule to current needs and projects.

Example: an employee can work three days a week full-time in the office, and on the remaining days perform tasks according to the company's needs. Such flexibility allows the company to maintain continuity of work, and the employee to better balance professional and private life.

Flexible hours and part-time work also help with seasonal projects or work that requires greater involvement on selected days. This way, the company can respond to changing needs without increasing the costs of permanent employment.

Norwegian law allows for so-called averaging of working time (gjennomsnittsberegning). This means that an employee can work up to 50 hours a week in some weeks, and the company does not have to pay a 40% overtime supplement, as long as the average working time over a longer period remains within the standard 40 hours per week.

This is a very practical solution for companies that carry out projects with varying workloads. Example? In a transport company, during a large order, an employee can work 50 hours a week for several weeks and then have a quieter period. Thanks to averaging working time, companies avoid additional costs, and the employee does not lose hours – everything is settled based on the average working time.

This solution provides flexibility and helps to plan resources more efficiently, especially during periods of increased project workload.

Confidentiality and loyalty clauses (taushetsplikt, lojalitetsplikt) are an important element of every employment contract. Their purpose is to protect the company's confidential information and minimize the risk of disloyal actions by employees.

A practical example? An employee cannot disclose marketing strategies, product development plans, or pass this information to competitors. Thanks to such provisions, the company can be sure that its know-how, client contacts, and internal procedures remain safe.

A non-compete clause (konkurranseklausul) and client clauses (kundeklausul) are tools that help protect the company from losing know-how, clients, and business contacts after an employee leaves. They allow the company to secure its market position and avoid situations where a former employee transfers client relationships to a competitor or starts their own competing business.

Example? If an employee was responsible for sales to key clients, a client clause may prevent them from contacting those clients for a specified period after leaving the company. Similarly, a non-compete clause may limit the possibility of working in the same industry or in a similar role for a set period.

Such provisions help protect the company not only financially but also strategically. Thanks to them, business knowledge and relationships remain within the company, and the risk of damage caused by former employees is significantly reduced.

Precisely defining the rules for contract termination is crucial for both the employer and the employee. This greatly reduces the risk of legal disputes, and cooperation proceeds in a predictable and safe manner.

In practice, it is worth listing in the contract specific situations that may lead to termination – for example, violation of work regulations, failure to fulfill duties, or repeated tardiness. Clearly written rules give the employee an understanding of expectations, and the company the certainty that in case of problems it can act in accordance with the law.

This approach not only protects the company but also builds transparency and trust in relations with employees. Everyone knows what to expect, and decisions regarding the end of cooperation are based on clearly defined criteria.

Not all rules need to be written directly into the employment contract. Some can be included in the work regulations, which, once approved by Arbeidstilsynet, become binding for all employees – without the need for each of them to sign it.

Work regulations are a practical tool for standardizing rules within the company. They can specify absence reporting procedures, vacation rules, work schedules, or overtime settlement methods. Thanks to this, employees know what to expect, and the company can manage the team more easily and avoid misunderstandings. Usually, the employer can include many provisions in the work regulations that will protect them, and additionally, when the regulations are approved by Arbeidstilsynet, the employer strengthens their position and recognition within the team.

Approved work regulations also provide the company with greater legal certainty. In case of a dispute, the employer can refer to clearly defined rules that apply equally to everyone. This is a way to introduce order and transparency into everyday work.

Clear procedures for reporting absences from work – both vacations and illnesses – are key to the smooth functioning of the company. Thanks to them, employees know exactly how and when they should inform about their absence, which helps avoid misunderstandings and chaos in the team.

If an employee is sick and informs the company according to the established procedure – for example, by sending an email to their supervisor within the first hour of the workday and entering the absence into the system. This allows the HR department to plan replacements accordingly, and supervisors have a full picture of the team's situation.

Thanks to established routines, the company can be sure that everything is organized, and employees feel confident knowing how to proceed in case of absence. Such simple rules save time, reduce stress, and improve team efficiency.

Using fixed-term contracts gives the company great flexibility, especially for seasonal or short-term projects. This allows the employer to adjust the team to current needs without immediately committing to permanent employment. The employee, on the other hand, knows how long their cooperation will last and what its terms are.

Another useful tool is avspassering (hour bank), which allows employees to take time off instead of receiving extra pay for overtime. If an employee works more hours than usual in one week, they can take a day or two off the following week instead of getting paid for overtime. This benefits both the company – which does not increase costs, and the employee – who gets a flexible form of compensation in the form of time off. However, it is important to remember that when taking time off, the employee receives the 'base' hourly rate, and the overtime supplement (40%) must still be paid.

Combining fixed-term contracts and avspassering allows the company to manage the team dynamically, adapting to current needs, while giving employees a sense of flexibility and fair compensation for their working hours.

Hiring employees who work remotely from outside Norway is an increasingly popular solution. It allows you to pay gross salaries without the obligation to pay social security contributions (AGA) and advance tax payments in Norway, which reduces employment costs.

Example? A company in Oslo hires a specialist living in Poland who performs their tasks from home. The salary is paid on a gross basis, and the company does not have to pay social security contributions or tax advances in Norway. The condition is, however, that the work is actually performed remotely outside the country and that the employee has a permanent residence outside Norway.

This solution provides great flexibility and enables access to talents who do not live in Norway. Thanks to this, the company can quickly respond to project needs, increase the team when necessary, and at the same time optimize employment costs.

For more information and practical advice, feel free to contact Advokatfirma Nierzwicki & Bluszko AS. Labor law experts in Norway will help you prepare contracts tailored to your company's needs and protect its interests.