Employee Rights in Case of Termination

Termination initiated by the employer is a unilateral decision to end the employment relationship. Due to the strong protection of employees’ rights in Norway, strict requirements apply to both the procedure and the justification for such dismissals. Below, we explain your rights in the event of termination — and how our lawyers can assist you.

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Termination Explained

Termination may be based on circumstances relating to the employee, the employer, or the business. For each of these categories, the law and case law require several conditions to be met before a dismissal can be considered objectively justified.

When termination is based on the employee’s circumstances, it typically relates to work performance or conduct in the workplace. Examples include failure to perform the duties of the position, harassment of colleagues, or other inappropriate behaviour.

When the employer or business circumstances are used as the basis for termination, common reasons include restructuring, rationalisation, or loss of market share resulting in the employer no longer having work for all employees. The requirement of objective grounds for dismissal is one of the most fundamental employee rights under the Norwegian Working Environment Act.

Pre-Termination Consultation Meeting

Before making a decision about dismissal, the employer should hold a consultation meeting in accordance with Section 15-1 of the Working Environment Act. The purpose of the meeting is to review the grounds for termination and allow the employee to present their perspective. This helps ensure a fair process and reduces the risk of an unfair or incorrect dismissal.

Failure to conduct a consultation meeting does not automatically invalidate the dismissal. However, Norwegian courts often attach significant weight to this omission, and it may increase the likelihood of the termination being deemed unfair.

Employees often bring a union representative or lawyer to the meeting.

Formal Requirements for Termination — Essential Employee Rights

Strict formal requirements apply to terminations, and failure to comply may render the dismissal invalid. These rules ensure that any employee who loses their job is properly informed of their rights.

As a general rule, termination must be delivered personally or sent by registered mail. The employer must ensure that the letter actually reaches the employee.

The written notice must meet the requirements of Section 15-4 of the Working Environment Act, and must state:

The employee’s right to demand negotiations and legal action
The right to remain in the position while the case is ongoing (§§ 17-3, 17-4, 15-11)
Deadlines for negotiations, filing a lawsuit, and remaining in the position
The identity of the correct opposing party in a lawsuit
Information about preferential rights under § 14-2 (if dismissal is due to business-related reasons)
If these requirements are not fulfilled, the termination is invalid. The employer may issue a new, valid notice, but may still incur liability for procedurally wrongful termination. Employees also have the right to request a written justification for the dismissal.

Fundamental Right: The Termination Must Be Objectively Justified

Under Section 15-7 of the Working Environment Act, a dismissal must be objectively justified in the circumstances of the business, the employer, or the employee. Although the law provides limited detail, case law and legal sources have established clear criteria.

This assessment considers:

The employer’s basis for the dismissal
How the employer handled the process
Whether the decision is fair after a holistic consideration of both parties’ interests

Termination Based on Employee Circumstances

Dismissal due to the employee’s performance or conduct can be complex to assess. Certain behaviours — such as theft or embezzlement — are almost always considered valid grounds. Other cases, such as cooperation problems or weak performance, require stronger documentation.

Relevant factors include:

Documented factual basis for the allegations
Whether unrelated or improper factors influenced the decision
Warnings and opportunities to improve — has the employee been notified and given a chance to adjust?
Possible alternatives to termination
The less serious the alleged misconduct, the stronger the requirements for proper employer procedure.

Examples of commonly accepted grounds (with warnings/documentation):

Unjustified absence
Refusal to follow instructions
Weak performance
Harassment
Breach of confidentiality
Examples of grounds often considered sufficiently serious even without warnings:

Theft or embezzlement
Violence against colleagues or customers
Intoxication at work

Termination Based on Business Circumstances

Businesses frequently need to reorganise due to market changes, financial pressure, or efficiency needs. In such cases, downsizing may be objectively justified — but strict requirements apply:

The employer must document the need for downsizing
The employer must weigh the company’s needs against the impact on employees
Alternatives to downsizing must be considered
Objective selection criteria must be used (e.g., seniority, competence, suitability)
The employer must define the selection pool and follow consistent rules
You can read more in our main article on downsizing and employee rights.

Fundamental Right: The Right to Contest a Termination

Employees may challenge the dismissal based on either procedural errors or lack of objective justification. Employees may claim compensation for financial loss under § 15-12 and may demand to remain in their position while the case is ongoing under § 15-11.

If the court finds the termination invalid, the legal effect is that the dismissal is treated as if it never occurred.

Right to Request Negotiations

Under § 17-3, the employee has the right to demand negotiations regarding the termination. This also applies if the employer breaches rules on preferential rights, temporary employment, or unlawful suspension.

The request must be made within two weeks of receiving the notice of dismissal. This right is crucial because it forces the employer into dialogue and preserves the employee’s right to remain in the position.

Right to Remain in the Position

The employee may remain in the position:

While negotiations are ongoing (§ 15-11)
While a lawsuit is ongoing, provided the action is filed within the deadline in § 17-4
This right does not normally apply in cases of summary dismissal or dismissal during a probationary period, although exceptions do exist.

Additional Rights After Termination

Right to Unemployment Benefits (NAV)

If the dismissal stands, you may receive unemployment benefits.
However, if the termination is based on employee misconduct, NAV may impose a waiting period.

Right to Interest Waiver from Lånekassen

Unemployed individuals registered with NAV for at least three months may apply to have student loan interest waived.

Legal Assistance in Termination Cases

Employee rights in dismissal cases are extensive and complex. Both employees and employers often require legal guidance.

We assist with:

Assessment of the legality and fairness of the termination
Negotiations
Claims for compensation
Claims for reinstatement
Settlement agreements
Ensuring employers follow proper procedures
Most cases settle amicably — something we always explore before litigation.

Contact Us

If you have questions about your rights in connection with termination, or other employment law matters, feel free to contact us. The initial assessment is free, and no fees apply until a written engagement agreement is signed.

Mail: Post@verito.no
Tlf: 24 02 21 20

If you are not eligible for free legal aid, remember: many employers cover legal expenses.

Read our Norwegian article Rettigheter ved oppsigelse

Visit our website Verito.no

Sources

Norwegian Working Environment Act (lovdata.no)
The Norwegian Labour Inspection Authority