EFTA Court: Norway can restrict hiring of temporary agency workers

In 2023, Norway introduced stricter regulations on temporary hiring, significantly reducing companies' ability to use staffing agencies, as the ability to hire agency workers for temporary work was restricted considerably. You can read more about that here and here.

The rules were brought to the EFTA Court, which recognised that the hiring restrictions could make it less attractive for staffing agencies to establish and operate in Norway. However, as the hiring restrictions do not necessarily breach EEA law, the rules can be enforced if justified and proportionate.

It is now up to the Norwegian court to decide whether the rules can be applied or not.

IUNO’s opinion

The new temporary hiring rules are challenging for companies. If a company hires a temporary workforce, temporary agency workers may have the right to a permanent position. Companies should be especially aware of how exceptions are applied, as these can vary between industries.

IUNO recommends that companies pay close attention to how the case develops, as the EFTA Court did not offer any practical guidance. Depending on what Oslo District Court decides, the rules may be adjusted.

[The EFTA Court’s judgment of 20 November 2024 in case E-2/24]