How to legally dismiss an employee in Norway?

hello, i run a renovation company and have to let an employee go because theres no jobs. how do i do it legally so i dont lose the case ?

Dismissing an employee in Norway requires valid grounds, the correct procedure and a properly drafted letter. An error at any of these stages may result in the notice being deemed invalid, an obligation to continue employing the employee and/or payment of compensation.

In this article, we explain the rules applicable in 2026. We cover the grounds for dismissal, the consultation meeting with the employee, the notice period, special protection and final settlement after employment ends.

When an employer may terminate an employment contract

Under the Norwegian Arbeidsmiljøloven, termination by an employer requires an objective and justified reason, known as saklig grunn. The reason may concern:

• the company's situation, such as a genuine workforce reduction or reorganisation,
• the employer's circumstances,
• the employee's conduct, qualifications or performance.

In cases of poor performance, you must demonstrate that the employee knew the requirements, received the necessary instructions and had a genuine opportunity to improve. In cases of breaches of duties, the specific incidents, their recurrence and their impact on the company are important.

A written warning should describe:

• the identified shortcoming,
• the expected change,
• the deadline or opportunity for improvement,
• the consequences of further breaches.

The regulations do not specify a mandatory number of warnings. Their importance depends on the nature and seriousness of the breach. One very serious incident may justify dismissal, whereas poor performance usually requires a documented history of meetings, instructions and warnings.

Permittering means a temporary release from the duty to work, not the end of employment.

Procedure before serving notice

The decision to dismiss an employee should not be predetermined before the meeting with the employee. First, you must gather the documents, consider less severe measures and allow the employee to present their position.

The consultation meeting before termination must be held where practically possible. It should concern both the grounds for dismissal and the circumstances presented by the employee. A signed record is not a condition for the validity of the termination, but it is important evidence that the correct procedure was followed.

You must not pressure an employee to submit a "voluntary" resignation in order to circumvent protective rules. If the parties genuinely wish to end their cooperation by mutual agreement, the terms should be agreed voluntarily and recorded in writing.

Notice letter and notice period

A notice of termination given by an employer must be in writing. It must be delivered to the employee in person or sent by registered letter to the address provided by the employee. An ordinary email should not be the only method of delivery.

Termination takes effect when it reaches the employee, not on the date it is drafted or sent.

The letter must include information about:

• the right to request negotiations and bring legal action,
• the deadlines applicable to negotiations and court proceedings,
• the right to remain in the position during a dispute,
• the employer as the proper party to any potential legal action.

At the employee's request, you must state the reason for the termination. If the employee requests a written response, it must be provided in writing.

In the event of dismissal for reasons related to the company, the letter must additionally provide information about the preferential right to re-employment. If the employer belongs to a group, it must also identify the companies belonging to the group on the date of termination.

Statutory notice periods in 2026

The periods below are statutory minimums if a written contract or collective agreement does not provide for a longer period.

The extended 4-6 month periods based on age apply to termination initiated by the employer.

The ordinary notice period begins on the first day of the month following the month of delivery. If the employee receives the letter on 15 September 2026, the period will begin on 1 October 2026. The employee then retains the right to work and receive pay.

Probationary period

A probationary period must be agreed in writing and generally may not exceed 6 months. For a fixed-term contract, it cannot be longer than half of the planned employment period.

Termination during the probationary period must be related to the employee's adjustment to the work, qualifications or reliability. The statutory notice period is 14 days, unless a written contract or collective agreement provides otherwise. The period runs from the day the letter is received, and notice must be given before the end of the probationary period.

Situations requiring special assessment

Workforce reduction

A workforce reduction must result from a genuine need of the company. You must document the financial or organisational reasons, the scope of the reduction and the criteria for selecting specific employees.

The criteria should be objective and applied consistently. They may include qualifications, suitability for future tasks, length of service and social circumstances. A collective agreement may give length of service particular importance.

Before giving notice, you must:

• check whether the employee can be offered other suitable work within the company,
• in the case of a group, check suitable positions in other Norwegian companies within the group as well,
• compare the company's needs with the negative effects of dismissal for the employee.

An employee dismissed due to a workforce reduction has a preferential right to re-employment if they are qualified for the position and have worked for a total of at least 12 months during the last 2 years. The preferential right applies from the date of notice until 1 year after the end of the notice period.

Dismissal of at least 10 employees within a 30-day period for reasons not related to them individually is a collective redundancy. This creates an obligation to consult employee representatives and notify NAV. The dismissals can take effect no earlier than 30 days after notifying NAV.

Illness, pregnancy and parental leave

During the first 12 months of an employee's incapacity for work, the employee may not be dismissed because of illness. A termination notice served during this period is presumed to be related to illness, unless the employer demonstrates with a high degree of probability another reason, such as the genuine closure of an entire department.

The expiry of 12 months does not automatically give the right to dismiss the employee. You must still demonstrate justified grounds and document workplace adaptation, support measures and the possibility of reassignment. We discuss obligations towards an employee on sick leave in more detail in a separate article.

Pregnancy, childbirth, adoption and parental leave cannot be grounds for termination. Discriminatory dismissal is also prohibited, including on the grounds of gender, origin, religion, disability, sexual orientation, caring responsibilities or age. You must also not use dismissal as retaliation for lawful reporting of wrongdoing.

Fixed-term contract and termination due to age

A validly concluded fixed-term contract generally ends on the agreed date. If the employee has been employed for more than 1 year, they must receive written notification of the end date at least 1 month in advance. Early termination of the contract requires application of the ordinary termination rules.

From 1 January 2026, employment may be ended solely due to age when the employee turns 72. The departure may take place no earlier than 6 months from the first day of the month following delivery of written notice. A lower limit is permitted only where necessary for health or safety reasons and where it remains proportionate.

Final settlement and risk of a dispute

After employment ends, all amounts due must be settled, including:

• pay for the notice period,
• allowances, overtime, commissions and expense reimbursements,
• accrued feriepenger,
• a payslip,
• a written employment certificate.

The minimum feriepenger rate in 2026 is 10.2% of the basis for statutory holiday entitlement of 4 weeks and 1 day, and 12% for 5 weeks of holiday under a contract or collective agreement. We discuss the detailed calculation rules in the article holidays and feriepenger from the employer's perspective.

Feriepenger should be paid on the last regular payday before departure, unless the parties agree on a different date. There is no general statutory severance pay for ordinary termination. Additional severance pay may result from a contract, collective agreement or voluntary agreement.

The employment certificate must include at least the employee's name, date of birth, type of work performed and employment period.

The end date of the employment relationship must be reported to the Aa-registeret through a-melding. The report must be submitted by the 5th day of the following month. Until you provide the end date, the employment remains active in the register and you must continue sending the monthly a-melding, even if no payment is made. More information can be found in the article what is an a-melding and when must it be submitted.

Deadlines in a dispute with an employee

In the case of ordinary termination, the employee can usually remain in the position during negotiations and court proceedings. This right does not apply automatically, among other things, to summary dismissal and termination during the probationary period.

The absence of written form or required information in the letter has serious consequences. The ordinary deadline for bringing legal action generally does not apply in that case, and if the employee brings an action within 4 months, the court should usually find the termination invalid. The employee may also seek compensation.

FAQ - frequently asked questions

Summary

• Termination requires an objective and justified reason and documents confirming its basis.
• Before making a decision, you must consider less severe measures and hold a meeting with the employee where practically possible.
• The letter must meet statutory requirements, be properly delivered and take account of the applicable notice period.
• After employment ends, you must settle pay and feriepenger, issue an employment certificate and report the departure date in the a-melding.

If you need help with legally dismissing an employee in Norway, call us: +47 21 38 38 21. We help employers correctly handle settlements related to the end of employment.

Article author: Marcin - marcin@efirma.no