Do you work through a temporary staffing agency (staffing company) in Norway? Then you are formally employed by the staffing agency, but you perform work for a client company. This gives you special rights – and certain risks you should be aware of.
What is a temporary staffing agency and what does "hiring-out" mean?
Temporary staffing agency (staffing company) is a business that employs workers to hire them out to other companies. There are three parties:
- You (worker): Employed by the staffing agency
- The staffing agency: Your formal employer
- Client company (place of work): The company where you actually work
This differs from subcontracting (where a self-employed business carries out a task) and regular employment (directly employed by an employer). Legally it is important to clarify which form applies – illegal hiring-out or hidden hiring-out can give you the right to permanent employment with the client company.
Equal treatment principle: same pay as permanent employees
Norway introduced the equal treatment principle through the Temporary Work Directive (EU/EEA Directive 2008/104/EC, implemented in aml. § 14-12a).
You have the right to the same basic working and employment conditions as comparable permanent employees at the client company, including:
- Pay – including local supplements, overtime rates, and bonuses
- Working time – length and scheduling of working hours
- Overtime – same overtime rates as permanent employees
- Rest time and breaks
- Holiday and holiday pay
- Protection of pregnant workers and protection against discrimination
Equal treatment applies from your first working day. The staffing agency is responsible for ensuring you receive what you are entitled to.
Joint and several liability: The client company is jointly and severally liable for wage claims. If the staffing agency does not pay, you can demand pay directly from the client company.
The limit for lawful hiring-out from staffing agencies
From 1 April 2023, the rules for hiring-out from staffing agencies were significantly tightened:
As a general rule, hiring-out from staffing agencies is no longer permitted for regular jobs in the private sector – unless:
- The work is temporary and one of the law's approved reasons applies (e.g., cover for absence, seasonal work)
- The workers are unionized and have a collective bargaining agreement that permits hiring-out
- The client company is a non-profit organization (voluntary sector)
Construction site ban in major urban regions: In Oslo, Viken, and Vestfold and Telemark, there is a total ban on hiring-out of tradespeople from staffing agencies for construction and civil engineering projects.
Companies that violate the rules can be penalized. Employees working under illegal hiring-out may have the right to permanent employment directly with the client company.
How to complain if you don't receive what you are entitled to
- Raise it with the staffing agency – ask for written clarification of pay terms
- Contact the Labour Inspection Authority (73 19 97 00 / arbeidstilsynet.no) – they oversee equal treatment rules and joint and several liability
- Contact your union – unionized workers receive assistance from their organization. Read more about unions and the Norwegian working life model
- Go to the Dispute Resolution Committee or court – for disputes about permanent employment
Wage claims are subject to a 3-year limitation period (claims arising after 20 May 2022).
Special risks: illegal staffing agency contracts
The staffing industry is particularly vulnerable to labour crime, and immigrants are overrepresented among victims:
Typical patterns:
- Payment below minimum wage (you don't know what rates apply)
- Withholding of holiday pay
- Hidden hiring-out: presented as self-employed contractor (sole proprietor) but you are actually a hired-out worker
- Unreliable agencies that don't pay withholding tax and employer contributions
- Varying contracts that change after you start work
Characteristics of reputable staffing agencies:
- Registered in the Business Register (check proff.no)
- Approved by the Labour Inspection Authority
- Written contract from day one with all terms specified
- Fixed pay – not "dependent on assignments"
Also read about whistleblowing at work for how to report violations.
Equal treatment principle in practice: what does it mean for you?
The equal treatment principle is one of your most important rights as a hired-out worker. It means you should be treated the same way as permanent employees at the company where you work, not at the staffing agency. This is regulated in the Working Environment Act § 14-12 and is an absolute right – it cannot be waived by agreement.
Pay: You must receive the same pay as equivalent work performed by directly employed workers at the client company. If a permanent employee in the same role earns 200 kroner per hour, you cannot receive 180 kroner. The client company cannot make deductions for "temporary worker bonus" or because you are a temporary worker. Pay must be calculated the same way – if permanent employees receive supplements for unpleasant work, you should also receive it.
Working hours and shifts: You should be offered the same working hours as permanent employees. If the company normally works 37.5 hours per week, you cannot be forced to work 40 hours because you are a temporary worker. If permanent employees have the right to be on call only one Friday per month, you should also have the same arrangement.
Breaks and rest time: The Working Environment Act ensures you have the same break entitlements as permanent employees. If permanent employees get two 15-minute breaks per day, you also get them. You cannot be treated worse just because your contract is limited. Breaks must be paid if the company pays breaks for permanent employees.
Days off and weekends: You have the right to the same days off and weekends as permanent employees. If the company normally gives Saturday and Sunday off, you should also have those days. You cannot be forced to work weekends while permanent employees are excused – this is discrimination.
Social benefits: This becomes more complicated. Permanent employees may receive company cafeteria, sports support, or employee discounts. You should also be offered these under the same terms. If the company has a pension scheme, the rules may be different for hired-out workers, but this must be documented and objectively justified.
Practical example: You work as a warehouse worker through a staffing agency at a company. Permanent employees earn 220 kroner/hour, you earn 220 kroner/hour. Permanent employees work 08:00–16:30 with 30 minutes paid break and one free hour, you work 08:00–16:30 with the same break arrangement. Permanent employees have Sunday off, you should also have Sunday off. If the client company violates these rules, you can complain to the Labour Inspection Authority.
Hiring-out restrictions from 2024: what changed?
From 1 January 2024, the rules for hiring-out of workers were significantly tightened in Norway. This is due to concerns about social dumping and evasion of value-added tax. You need to know these rules to understand your rights.
General hiring-out restrictions: The Working Environment Act § 14-12 stipulates that hiring-out of workers is only permitted for "temporary needs". It is not lawful to use hiring-out for permanent staffing of a position. If a position has lasted more than 12 months with hiring-out, the client company must employ the worker permanently or cease the hiring-out.
Construction sites and construction sector: Here the rules are much stricter from 2024. Hiring-out of workers to construction sites is now actually prohibited in most cases, with few exceptions (skilled specialists, short-term assignments under 4 weeks). This was done to stop undeclared work and social dumping. If you are employed at a construction site through a staffing agency, you can ask for guarantees that this is lawful – get it in writing from your employer.
Whitewashing of hiring-out: Some companies try to circumvent the rules by creating "fake" subsidiaries where hired-out workers become "directly employed" on paper but work for another company. This is illegal whitewashing. If you are in this situation, you can report it to the Labour Inspection Authority.
Documentation: From 2024, the client company must document that the hiring-out is necessary and temporary. The company must have a written agreement with the staffing agency that specifies the duration. You can ask for a copy of this agreement – it is your right to know why you are being hired out.
Penalties for violations: Companies that violate hiring-out rules risk fines of up to 500,000 kroner and orders to cease hiring-out immediately. If you have worked illegally as a hired-out worker for more than 12 months, you can demand permanent employment or compensation for loss.
How to check if the staffing agency is reputable
Unfortunately, there are many unreliable staffing agencies that break laws, pay too little, or operate entirely illegally. You must be able to check whether the agency is legitimate before you sign a contract.
Labour Inspection Authority's register: There is an official register of staffing agencies (staffing companies) on arbeidstilsynet.no. This is a public list of all approved and registered staffing agencies in Norway. Before you sign with a staffing agency, check that they are on this list. If they are not registered, it is a red flag – they may be illegal.
Agreement and contract: A reputable staffing agency provides you with a written employment contract before you start. The contract must specify: pay (with hourly rate), working time, location where you will work, duration of the assignment, your rights, and contact information for pay settlement. You should receive your own copy that you can take with you.
Fees and costs: Staffing agencies must NOT charge fees from you as a worker. It is illegal. The agency makes money from the client company (employer), not from you. If a staffing agency asks you for a "registration fee" or "equipment fee", it is fraud – report it to the Labour Inspection Authority.
Pay settlement: A reputable agency pays your salary directly to your account at least once a month, normally by the 5th working day after the end of the month. If the agency pays in cash or later, or irregularly, it is a sign of unreliability. You can also demand an employer notification (A-notice) as proof that you are registered as a worker.
References and reviews: Check reviews of the staffing agency on Google, Trustpilot, or union websites. If many people report pay problems, missing contracts, or poor follow-up, stay away.
Questions to ask: Call the agency and ask specific questions: Where are you registered with the Labour Inspection Authority? What is your minimum wage? Do you pay holiday pay? What happens if the client company does not pay you? A reputable agency can answer all of these precisely.
Temporary staffing agencies and tax: what you need to know
As a hired-out worker, you are employed by the staffing agency, not by the client company. This means the staffing agency is responsible for tax, and you have the same tax status as all workers.
Tax card: You should be issued a tax card from the Tax Authority for use with the staffing agency. The staffing agency uses the tax card to calculate how much tax should be withheld from your salary. If you do not have a tax card, the staffing agency cannot legally pay you – they risk penalties.
A-notice and documentation: The staffing agency is obligated to submit an A-notice to the Tax Authority every month with information about you, your position, and your pay. This must be done by the 5th of the following month. You can request a printout of the A-notice for your verification. If the A-notice is incorrect or missing, it may affect your tax return and any social security benefits.
Holiday pay: The staffing agency must calculate and set aside holiday pay for you as for all workers. Holiday pay is normally calculated as 12% of your gross salary, or according to your collective bargaining agreement. You should receive holiday pay when you take leave, or it should be accrued. If the staffing agency does not comply, you can complain to the Labour Inspection Authority.
Employer's exemption: If your client company does not pay the staffing agency, your pay does not automatically fall through. You should still receive pay from the staffing agency, which will settle later with the client company. If both the staffing agency and client company are insolvent, you have the right to wage guarantee from NAV (see separate article).
Actual settlement: Annual payment and tax settlement should show all pay paid through the staffing agency. If you worked for multiple staffing agencies in the same year, all should report to the Tax Authority. You must check your tax return when it is published, and file a complaint if it is incorrect.
