4. Trends and Specific Cases

Trends
Norway has a relatively strong labour market in a European context, both for employees and independent contractors in terms of access to work. Some individuals who perform work prefer to operate as independent contractors. In favourable market conditions, this form of engagement is often attractive due to greater flexibility and, in many cases, higher remuneration compared to traditional employment.

However, in periods of economic downturn, or when individuals performing work become ill or require access to social benefits, disputes frequently arise concerning the legal distinction between employees and independent contractors. This has led to a body of case law addressing the classification issue.

At the same time, many employers increasingly prefer to engage independent contractors rather than hire employees directly, particularly in sectors such as IT and construction. By classifying workers as independent contractors, employers avoid obligations related to employee benefits and, in particular, the strong protection against dismissal that applies to employees. Following the implementation of the Temporary Agency Work Directive and the introduction of strict conditions for hiring from temporary work agencies, the use of independent contractors has become even more attractive for employers than before.

Recent Case Law

In 2025, the Supreme Court issued a judgement on whether several foster parents working in emergency foster homes in Oslo Municipality were wrongly engaged as individual contractors. The foster parents brought claims for recognition as employees, compensation for non-economic loss, and enrolment in the municipal occupational pension scheme.

The Supreme Court held that emergency foster parents were correctly classified as individual contractors. In its reasoning, the Court reviewed the key criteria relevant to the employee assessment, namely whether the emergency foster parents continuously made their labour available, whether they had a personal obligation to perform the work, and whether they were subject to subordination through management, direction, and control.

The Supreme Court noted that the same legal question had previously been decided in 2013 concerning state-operated emergency foster homes. The Court found no material differences in the factual circumstances or in the legislature’s position that would justify departing from that earlier precedent.

The decision is interesting, among other things, because it addresses the presumption rule introduced on 1 January 2024, which provides that an employment relationship shall be presumed to exist unless the principal can show that it is more probable than not that an independent contractor relationship exists. However, the Supreme Court states that the presumption rule is only relevant where there is doubt regarding the factual circumstances of the case.

Furthermore, the Supreme Court delivered a judgment in 2024 concerning the financial settlement following reclassification; see section 2(d).