Employer of Record in Norway

Skuad’s Norway Employers of Record (EOR) solution helps your business expand into Norway without the need for an entity setup. Our unified and automated global HR platform enables you to expedite the onboarding of your remote team and manage their payroll, benefits, etc. We help you streamline the global expansion process with the able assistance of our international network.

Contact us to know more about our customized solutions in Norway.

Norway At A Glance

Norway is a Nordic country in northern Europe that shares its borders with Finland, Russia, Denmark, and Sweden. According to the World Bank, Norway has the fourth-largest per capita income.

Population: 5.3 Million

Currency: Norwegian Krone (NOK)

Capital city: Oslo

Languages: Norwegian, Sámi

GDP: $350 billion (2020)

Learn more about expanding your business into Norway by partnering with Skuad.

Employment in Norway

What You Must Know Before Employing In Norway

Norway employment laws apply to both foreign nationals and their citizens. However, there are some differences in their entitlements. Let us understand the differences and other aspects of employment laws in Norway.

Norwegian laws may look somewhat complex and confusing but are not much different from the employment regulations of many other countries. Nevertheless, to minimize or mitigate the challenges for companies looking to set up a local office, it is advisable to partner with a local payroll provider who is well aware of Norway Labor laws for local and foreign workers.

Learn more about employing talent in Norway at Skuad.

Contractors vs. Full-Time Employees

The contractors and full-time employees are assessed based on the following guidelines:

• It is full-time employment if there exists an employment relationship. It includes fixed working hours, fixed monthly compensation, the provision that the employer directs the person’s work, and a notice period. To hire full-time employees, the company must qualify as a Norwegian employer. For full-time employees, the taxes get deducted by the employers from their paycheck. The employee’s tax is generally 14.1% of the salary. 

• The person is a contractor if the work gets performed under their name at their discretion and risk. Their compensation gets reduced due to underperformance, and they work on their equipment at their premises. The tax liability of a contractor is 18% on the income. You can hire a contract employee for a short-term project. 

Learn more from Skuad experts about the nitty-gritty involved in hiring fixed-time contractors or temporary contractors.

Hiring in Norway

Employers mandatorily run a background check on the employee before hiring them. The background details include previous work history, education, and business interest. The employment contract law in Norway states that the employer must draft a written contract for the recruited employee within one month from the date of hire. The written employment contracts must mention the job description, compensation, benefits, working hours, overtime benefits, and a termination clause. 

The best places to search for companies hiring in Norway are:

1. The Arbeidsplassen website provides the listing of jobs. However, the limitation is that it is only available in the Norwegian language. 
2. To look for jobs in various languages, Eures is one of the top websites. 
3. Gulesider is a website that shows job listings that might not be available on other platforms.
4. Most jobs get listed on the Finn website. The only limitation is that it is in Norwegian.

Skuad is a Global HR platform for building remote teams. We enable companies to hire, onboard, pay, and manage their teams in over 150 countries. While the businesses focus on their growth, we take care of the employee contracts, payroll, compliances, and benefits. Our services get driven by our product which is a self-serve, unified, and automated HR platform.

Book a Demo with Skuad to hire Employees in Norway.

Probation & Termination

Probation Period

The standard probation period in Norway for the employee is six (6) months. At the end of the probationary period in Norway, the employee becomes eligible for benefits and entitlements. The same must be mentioned in the employment agreement Norway.

Termination Of Service

Talk to Us to know more about the Termination of Service in Norway.

EOR Solution

Norway Employer of Record (Norway EOR) solution makes it easier and faster for businesses to expand into Norway. Taking the EOR route ensures smooth and compliant payroll processing and other employment responsibilities without any entity establishment. Skuad can help you manage monthly payroll, contracts, work permits, taxation, etc. in Norway for your employees.

1. General Employer of Record Service Terms

2. Outsourcing Employment Through An Employer of Record

When, as an organization, you decide to expand into Norway, you also need to determine the route you want to take. Whether to build an in-house team or grab the services of an EOR to manage payroll and employee lifecycle beforehand.

Talk To Us to hire Employees in Norway.

Types of Visas in Norway

Know more about the process of visas in Norway, Talk to Skuad experts today!

Work Permit Norway

Norway’s work permits for foreigners can be taken care of by the Skuad’s local partner in the country. As an EOR in Norway, Skuad takes care of all the requirements and responsibilities related to employment. On Skuad’s HR platform, the client company can manage their employee's daily activities and operations.

Talk To Us to know more about Norway’s visa and work permits and know if a Norway work permit without a job is possible.

Things You Must Know To Set Up Payroll In Norway

To set up payroll and manage taxation in Norway, you need to be aware of the rules, which vary from one category to another. The first and the foremost thing you must consider is whether you want to employ foreign professionals or locals. 

As a foreign company, you must be aware and adhere to the local tax laws like income tax, business tax, withholding tax, employee compensation insurance, social security costs, etc. There are two ways of doing it: 

a) you set up an in-house team to manage the payroll in Norway. 

b) you take the services of payroll outsourcing in Norway. The company will not only make the management simpler but also ensure complete compliance with Norway laws.

Taxation in Norway

Employer Taxation

Employee Taxation

Bonuses

Some sorts of salaried employees, as well as managers and executives, receive performance-based bonuses.

Book a Demo to know more about EOR in Norway.

Incorporation: How to Set Up A Subsidiary In Norway

You must consider the following factors before establishing your operations in Norway:

1. Business Factors:

Following factors must be considered before setting up the business in Norway:

• Business type and industry
• Current trade relationships and agreement 
• Nationality of the individuals and headquarters

2. Location:

Different cities in Norway have separate laws, expenditure, and availability. One must hire a legal advisor for the same. 

3. Language:

Norwegian is the majorly spoken language at 95%, while English comes a close second at 90%. 

Based on the organization size and its minimum share capital, Norway legally acknowledges the following forms of business:

1. Private Limited Liability Company - Aksjeselskap (AS): Commonly for small and medium-sized businesses. Big companies use this entity to set up a subordinate company in Norway. Minimum two directors, mandatorily including a European/Norwegian, must be appointed with a minimum paid capital of NOK 30,000.
2. The Norwegian Public Limited Company (ASA): The company must register at the stock market and the major decisions must be taken by shareholders at the general meeting. 
3. Sole Proprietorship: It is incorporation where an individual is liable for the business. No separate laws regulate the sole proprietorship. 
4. Partnership: The partnership is subject to the Partnership Act 1985. According to the Act, a partnership represents a commercial business established for the joint account of two or more partners, one of whom must have unlimited personal liability for the total obligations of the business. 
5. Branch: A business establishment by a foreign company run by local management. It hires employees from Norway. 

Learn more about Incorporation in Norway with Skuad.

Professional Employer Organization (PEO)

A Professional Employer Organization (PEO) is an organization that shares the responsibility of managing employees and payroll with your company. Unlike EOR services where the complete responsibility of compliance management lies with the outsourced company, a PEO works jointly with your business.

Skuad provides comprehensive HR services for globally managing your remote teams. Learn more by connecting with our professionals today.

Conclusion

Skuad as your EOR will help you set up a remote team in Norway and hire the employees (full-time/ contractors). We also help manage the SaaS tools while handling your company’s payroll in Norway. 

Book a Demo with Skuad to set up your remote team in Norway.