Arbeids(retts)lunsj episode 45 - Employer of Record in Norway: A Shortcut or a Legal Trap?
Description
In this episode of Arbeids(retts)lunsj, Lill Egeland takes us through the increasingly common phenomenon of Employer of Record (EOR) — a model where a global company formally acts as the employer on behalf of a client. This is often used by foreign companies that want employees in Norway without establishing a Norwegian entity. But is it too good to be true? Lill provides a clear legal analysis of how EOR works — and why it can be problematic under Norwegian law.
Key takeaways from the episode:
- What exactly is an Employer of Record, and how is it used?
- Typical reasons for choosing EOR — practical and tax-related
- Risks: Permanent employment obligations and lack of approval as a staffing agency
- Possible reactions from the Labour Inspection Authority and trade unions
- How contractual terms can reduce, but not eliminate, risks
- Why Norwegian rules favor a direct two-party relationship between employer and employee
This is an important episode for anyone considering cross-border employment and who wants to understand the labor law implications before entering into agreements.
Disclaimer: This episode is machine translated from the transcript of the Norwegian episode of Arbeids(retts)lunsj. The voices are generated using AI-tools.
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