Hiring of Labor

In the case of hiring labor, the employee is employed by the rental company, while the actual work is performed under the direction of the hiring company. Compared to regular employment relationships, hiring labor thus involves a tripartite relationship:

Between the employee and the employer (Company A), there is a regular employment relationship. Here, labor law rules apply, with the Working Environment Act being central. Between Company A and Company B, there is a contractual relationship between two companies. Such agreements are not regulated by labor law but are governed by general contract law.

The Working Environment Act distinguishes between hiring from a company whose purpose is to engage in rental activities (staffing agency) and a company whose purpose is not to engage in rental activities (production company). Different rules apply depending on whether the hiring is from a staffing agency or a production company.

The rules on hiring in the Working Environment Act only apply when it is a matter of hiring. The engagement of labor and the purchase of services can be organized in various ways, which can also resemble each other. Whether a contract involves hiring or not must be assessed concretely.

Guide on the Rules for Hiring Labor

The Ministry of Labor and Social Inclusion has created a guide on the rules for hiring labor in Norway, which provides an overview of the regulations and guidance on how they should be understood. The guide is intended for companies, employees, union representatives, supervisory authorities, and others who need to relate to the regulations in various contexts.