Overtime for Part-Time Employees. Norwegian Courts Have Issued Important Rulings
Employees working part-time may be entitled to overtime pay as soon as they exceed the working hours specified in their contract. This follows from two Norwegian court rulings cited by the HK-Nytt editorial team. However, the judgments have been appealed, so the legal situation is still not finally resolved.
Norwegian employers were accused of abusing regulations. It's about hundreds of thousands of kroner owed to employees.
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Until now, a different practice was applied in Norway. A person working part-time would only receive overtime pay after exceeding the standard working hours for a full-time employee, that is, 37.5 hours per week under a collective agreement or 40 hours without such an agreement. Simply exceeding the part-time hours specified in the contract did not automatically entitle the employee to overtime pay.
However, this method of calculation has been challenged. HK-Nytt points to two rulings based on EU law, according to which such rules may lead to discrimination against part-time workers. The dispute also concerns how Norway should interpret the Working Environment Act, known as arbeidsmiljøloven.
However, this method of calculation has been challenged. HK-Nytt points to two rulings based on EU law, according to which such rules may lead to discrimination against part-time workers. The dispute also concerns how Norway should interpret the Working Environment Act, known as arbeidsmiljøloven.
Overtime Already Beyond Own Contracted Hours. Judgments Not Yet Final
In one Norwegian case, the Søndre Østfold District Court ruled that a part-time employee should receive overtime pay for work exceeding the agreed scope of their position. The court ordered Coop Øst to pay André Kaldal 205,340 NOK. It found that the previous calculation method was contrary to the EU directive on part-time work. However, the judgment has been appealed and is not final.
A similar significance has the second case supported by LO. According to HK-Nytt, the courts of first instance held that an employee does not have to first reach the full weekly working hours to be entitled to overtime pay. For a person with, for example, a 20% position, this would mean the right to claim additional pay for work beyond the agreed hours. These rulings have also been appealed. The final interpretation of the regulations is still taking shape.
These cases have implications beyond just the payment of overtime. The proceedings supported by LO also aim to address the situation of people who formally have a small part-time contract but regularly work much more. Increasing the regular scope of employment could give such people greater job predictability. It could also limit the constant use of extra shifts instead of increasing contracted hours.
An additional problem concerns on-call work contracts. HK-Nytt reports that the plaintiffs did not receive confirmation that the same overtime rule applies to additional work performed under a separate framework agreement. This element is currently very important for employees. Some companies have started using such documents more frequently after the aforementioned rulings.
A similar significance has the second case supported by LO. According to HK-Nytt, the courts of first instance held that an employee does not have to first reach the full weekly working hours to be entitled to overtime pay. For a person with, for example, a 20% position, this would mean the right to claim additional pay for work beyond the agreed hours. These rulings have also been appealed. The final interpretation of the regulations is still taking shape.
These cases have implications beyond just the payment of overtime. The proceedings supported by LO also aim to address the situation of people who formally have a small part-time contract but regularly work much more. Increasing the regular scope of employment could give such people greater job predictability. It could also limit the constant use of extra shifts instead of increasing contracted hours.
An additional problem concerns on-call work contracts. HK-Nytt reports that the plaintiffs did not receive confirmation that the same overtime rule applies to additional work performed under a separate framework agreement. This element is currently very important for employees. Some companies have started using such documents more frequently after the aforementioned rulings.
The court referred to EU regulations that Norway must apply under the EEA Agreement.Photo: Fotolia.pl
A Second Contract Changes the Situation. Musti Employees Are an Example
The example described by HK-Nytt concerns the Musti chain. Ragnhild Hilden works in a store in Kongsberg at 70% of a full-time position, and the company now requires her to sign an additional framework agreement if she wants to take extra shifts. Previously, this was not required. Hilden has not yet signed the document. According to Musti, about 80% of part-time employees have done so.
Another Musti employee has only a 10% permanent contract and says she regularly works more. She would like to increase her permanent hours, but according to her, she has not been given that opportunity. To continue taking extra shifts, she also has to sign an additional agreement. Musti explains that this solution serves to formalize temporary staffing needs. The company also emphasizes that an employee can refuse a proposed shift.
However, the Handel og Kontor (HK) trade union advises caution when signing such documents. HK lawyer Medina Mahic points out that a framework agreement may affect the ability to later claim rights under the law or a collective agreement. This includes pay for additional work. The ability to request a larger position may also be affected, as well as priority for being assigned extra shifts.
Mahic notes that economic pressure can also be a problem. A person employed on a small part-time contract may depend on extra shifts to earn enough income. Refusing to sign the agreement may therefore mean, in practice, no extra work. The HK lawyer recommends that an employee considering signing such a document should stipulate that they do not waive rights under the law or a collective agreement. This reservation can also apply to the possibility of later claiming overtime pay.
Another Musti employee has only a 10% permanent contract and says she regularly works more. She would like to increase her permanent hours, but according to her, she has not been given that opportunity. To continue taking extra shifts, she also has to sign an additional agreement. Musti explains that this solution serves to formalize temporary staffing needs. The company also emphasizes that an employee can refuse a proposed shift.
However, the Handel og Kontor (HK) trade union advises caution when signing such documents. HK lawyer Medina Mahic points out that a framework agreement may affect the ability to later claim rights under the law or a collective agreement. This includes pay for additional work. The ability to request a larger position may also be affected, as well as priority for being assigned extra shifts.
Mahic notes that economic pressure can also be a problem. A person employed on a small part-time contract may depend on extra shifts to earn enough income. Refusing to sign the agreement may therefore mean, in practice, no extra work. The HK lawyer recommends that an employee considering signing such a document should stipulate that they do not waive rights under the law or a collective agreement. This reservation can also apply to the possibility of later claiming overtime pay.
Employer organizations also recognize the importance of this issue. According to HK-Nytt, Virke recommends that companies regularly check whether employees should have their permanent contracted hours increased, while also indicating framework agreements as a solution for additional work. However, the final significance of such agreements will also depend on the outcome of ongoing proceedings. Only final judgments can determine where the line is drawn between additional work and overtime for part-time employees.
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