A total of ten Norwegian staffing agencies and one Polish recruitment agency have taken legal action against the government. They believe that the rental ban introduced by the government in April last year conflicts with the EEA agreement. On Wednesday, the EFTA Court made its decision. However, they believe that it is up to national courts to decide the matter. – The case will now return to the Oslo District Court, which will ultimately decide whether the contested national rules are in accordance with EEA law, says a press release from the court. Lawyer Nicolay Skarning represents the staffing agencies and says the judgment comes with general guidelines. – There are quite a few premises in this judgment which will be taken up during the proceedings in the Oslo district court. We think that the state will have great difficulty in defending part of the restrictions placed on temporary employment agencies. Labor Minister Tonje Brenna (Ap) says tightening the rules for letting has been an important part of the government’s work. – It is good that the EFTA Court recognizes that Norway can have restrictions on the use of hire as long as these are well justified. Facts about the hiring rules Introduced on 1 April 2023 The general access to hiring from staffing companies for work of a temporary nature is abolished. It is still allowed to hire from staffing companies for temporary workers, or by agreement with shop stewards for companies that have a collective agreement with a large trade union. Leasing on construction sites in Oslo, Viken and formerly Vestfold is completely prohibited. Temporary or hired employees are entitled to permanent employment after three years. Source: NTB The government, with the support of the Storting majority, has always believed that the austerity measures are within the room for maneuver we have under the EEA agreement. – Now it will be up to the Oslo District Court to decide this specific case, says Brenna. Bans introduced In April last year, the government sharply tightened the rules. Among other things, it was forbidden to hire workers from temp agencies to perform temporary work. In addition, a total ban on the use of hiring in the construction industry was introduced in Oslo, Akershus, Østfold, Buskerud and Vestfold. The hiring ban has been one of the Ap/Sp government’s flagship issues, with strong support from the trade union movement. “Cross-border” The Government believes that the rules are well within the scope of action in the EEA Agreement. Among other things, Norway receives support from Germany, which has some similar rules. The European Commission, on the other hand, believes that the hiring ban is “clearly cross-border” and violates the principle of free establishment. Esa, which monitors the EEA countries, points out that a ban can only be “justified on the basis of compelling public considerations”. The desire for more permanent employment cannot be considered such a consideration, believes Esa, who has opened a separate case against Norway regarding the hiring ban. The state won In a similar case, 49 staffing agencies lost against the state in both the district court and the court of appeal. Both courts ruled that the hiring ban is not in conflict with the EEA agreement. The case was appealed to the Supreme Court, which quashed the Court of Appeal’s judgment due to a procedural error. A new round in the Court of Appeal has been put on hold pending the decision from EFTA. Published 20.11.2024, at 14.55 Updated 20.11.2024, at 15.09
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EFTA decision on the government’s hiring ban is ready – news Norway – Overview of news from different parts of the country
