SVW is presenting a new episode of the "Norwegian Employment Law in 10 minutes" podcast. Hosted by Lill Egeland and featuring Ingrid Mjøsund, this episode unpacks the nuances of termination agreements and severance clauses within the context of Norwegian employment law, providing valuable insights for employers and employees alike.
Termination Agreements: A Focused Discussion
- Concept and Validity: The episode begins with an exploration of the concept of termination agreements and severance clauses. Specifically, it discusses the legality and practicality of including severance clauses in employment contracts in Norway, highlighting that such clauses are generally valid only for top management positions, like CEOs.
- Severance Clauses: It's advised against including severance clauses in contracts for positions other than the CEO. A recent judgment has indicated that for other management roles, these clauses may not hold up, giving employees the option to choose between severance payment or challenging a dismissal.
- Negotiating Termination Agreements: The conversation shifts to the end of employment relationships, emphasizing the strategic importance of termination agreements for employers. Due to the high threshold for valid terminations and potential lengthy legal battles, reaching a mutual termination agreement can be a preferable route.
- Legal and Practical Advice: The podcast provides practical advice on negotiating termination agreements, including the importance of presentation, choice of words, and understanding the legal and commercial elements essential for drafting an agreement.
- Pitfalls and Best Practices: Highlighting common pitfalls, such as poor communication and unlawful termination risks, the discussion offers best practices for employers. It underscores the need for clear, respectful dialogue and proper legal framing when proposing termination agreements.
- Content of Termination Agreements: Key components of a robust termination agreement are outlined, including notice periods, waiver wordings, benefits continuation, and the negotiation of severance pay. The episode emphasizes the lack of a standard regulation on severance pay in Norway, making each case unique.
- Negotiation Strength and Expectations: Finally, the episode delves into the factors influencing the negotiation of severance pay, including the legal strength of the case, industry standards, and previous company practices. It stresses that while there's no formula for calculating severance, experienced legal advisors can offer guidance on appropriate levels based on various factors.
Conclusion
This episode of "Norwegian Employment Law in 10 minutes" provides a comprehensive overview of termination agreements, offering valuable insights for navigating these complex legal waters. Whether you're an employer or an employee, understanding the subtleties of these agreements can significantly impact the resolution of employment terminations in Norway.
Stay tuned for our next episode, where we will delve into other critical aspects of employment law.
After several hours negotiating in a meeting, you have just landed a termination agreement with an employee. A few weeks later you are sued by the same employee. He argues that the agreement does not apply that that he has effectively been terminated from his employment. This was the situation in an Appellate Court ruling from 2022. In this podcast episode we will look at the ruling to see if there is anything we can learn from it that can be used the next time you negotiate a settlement agreement.
In this episode of Norwegian Employment law in 10 Minutes, we explain the rules on the use of non-contingent work force. When can you employ a fixed term basis and when can you hire from a temp agency and what other options to you have if you do not want to employ someone permanently? We also talk about the relatively harsh consequences of not complying with the rules.
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This episode in the Norwegian employment law in 10 minutes series deals with the topic of non-compete and non-solicitation. At the end of this episode you will have a high level understanding of when such clauses should be used and what you need to do to enforce them.
Questions or comments? We'll be happy to hear from you on leg@svw.no.
This episode describes the concept: Partner Lill Egeland in the law firm Simonsen Vogt Wiig walks you through the most essential areas of Norwegian employment law in episodes that are no longer than 10 minutes.
