Everyone who has been out a bit in practical working life, knows that companies of all sizes and in all industries may occasionally need labor in addition to the permanent staff. A ship must be built within a certain deadline, a road parcel must be completed and a hospital may, for various reasons, have an urgent need for more doctors and nurses. We are talking about a temporary need that can appear everywhere in business and the public sector.
Temp agencies have been good “knitters” in this picture. The agencies find the desired workers, who may not want a permanent position, and the companies get their temporary needs met.
There may be 1,000 positions for a shipyard or 10 people for a hospital.
But Norway has adopted a ban on temporary labour. The Government and the Storting will have permanent, full positions. Then everything will be so good. The supply of labor always matches the demand.
However, this is not the real world, and there is a small exception for companies with a collective agreement, while there is a total ban for companies in the construction industry to hire labor in the extended Oslo area.
Temporary labor is almost criminal.
EFTA’s monitoring body ESA has said that the ban violates the rules on the free flow of services within the EEA area and the Temporary Agency Directive (no surprises there), and 12 temporary agency agencies have filed a lawsuit against the Norwegian state and are demanding compensation of NOK 50 million for the loss of the ban against temporary hire has inflicted on them.
In this legal process has the Oslo district court, where the lawsuit is brought, contacted the EFTA court to get a clarification of the law, and Aftenposten says that both the EFTA court and the European Commission want the Norwegian ban lifted.
It is almost obvious.
The government stands its ground, however, and believes that “it provides more permanent employment and increased security for employees.”
Somewhat weak in law, Norway claims that the ban is not against the law because the ban on renting out is not “cross-border”. The government believes it is about Norwegian agencies that hire out labor to companies in Norway, while ESA points out that many of the workers come from EU countries.
That’s probably right. Norway is headed for defeat. Free movement of labor still applies.
And the free right to establish oneself. The European Commission points to that.
Because the Oslo district court, which will hear the case, has requested a statement from the EFTA court, the case will hardly come up until late in 2025.
The government attorney tells Aftenposten that the Commission “seems to have overlooked that employment in a temp agency does not give employees the same security as a normal job”.
It’s thin stuff. Although the Government Attorney claims that “several people have gained permanent employment directly in the businesses with the new rules.” Yes, yes, when something is prohibited, there will probably be less of it (i.e. renting).
