Important changes made to working time legislation

Norway's legislation regarding the use of overtime work was liberalised in February 2003, while in April the Opening Hours Act, which regulates the opening hours of shops, was abolished. These two major changes to working time legislation have proved controversial among trade unions.

Two important legislative developments have taken place in early 2003 which are expected to have a significant impact on the working time of Norwegian employees. New rules regarding the use of overtime were introduced on 28 February, extending the possibility for individual employees to engage in overtime work. On 1 April, the controversial Opening Hours Act (Åpningstidsloven) was abolished, and new rules regarding shop opening hours on weekdays (including Saturdays) came into force. The changes made to the legal framework, in particular that governing overtime, have been met with significant criticism from both trade unions and opposition parties in parliament (Stortinget). Both changes form part of the efforts of the centre-right coalition government - comprising the Conservative Party (Høyre), the Christian Democratic Party (Kristelig Folkeparti, KRF) and the Liberal Party (Venstre) - to simplify the legal framework and provide greater working time flexibility for employees and employers (NO0110108F).

Overtime

On 28 February 2003, the Act relating to Workers' Protection and Working Environment (AML) was amended to allow for greater flexibility in relation to the use of overtime (NO0203101N and NO0209102N). As a result of these changes, the weekly and four-weekly restrictions on overtime work have been abolished. A more general rule regarding the total number of working hours allowed per week has been introduced. The use of overtime work must be distributed in such a way that the total working week (including overtime) does not exceed 48 hours, averaged over a four-month reference period. This period of four months may under certain conditions be extended to six months or, in companies with a collective agreement and based on agreement with trade union representatives, up to a year. The introduction of this framework allowing for a maximum 48-hour working week should be seen in light of efforts made to harmonise the Norwegian legal framework with the EU working time Directive (93/104/EC).

Although the general ceiling of 200 hours' overtime per employee per year still remains intact, new opportunities have been introduced to work so-called 'individual voluntary overtime' (between 200 and 400 hours per year). Previously, overtime beyond 200 hours per year was only allowed on the basis of an agreement with the relevant trade union or of a permit issued by the Labour Inspection Authority. Now (voluntary) overtime within a framework of between 200 and 400 hours a year may be based on a written agreement between the enterprise and each individual employee. Thus neither trade unions nor the Labour Inspection Authority need to be consulted on such matters any longer.

The rules regarding the conditions under which overtime may be used have not been changed and as such the employer must discuss overtime with trade union representatives before implementation. No changes are made in relation to the employers' right to impose overtime on employees (during the first 200 hours per year), or to the employees' right to refuse such overtime work.

Opening hours

The legislative framework regarding shop opening hours has been changed on several occasions in recent years, and has been a constant source of controversy (NO9707116F, NO9804160N, NO9901108F, NO9903122N and NO9906138N). In recent years, opening hours in Norway have been restricted by the Opening Hours Act, which prevented most retail outlets from opening after 21.00 on weekdays and after 18.00 on Saturdays. It also stipulated that outlets had to close on Sundays, though with some exceptions. On 1 April 2003, the Act was abolished. The implication of this is that there are now no limitations on the opening hours of retail outlets on ordinary weekdays (including Saturday). The general ban on trading on Sundays and religious holidays remains in place, but the provisions on this issue have been moved to the Act relating to Holidays and Holiday Tranquillity (Lov om helligdager og helligdagsfred). Thus outlets will have to stay closed on Sundays and religious holidays, and have restricted opening hours on public holidays. Previous exemptions to this general ban are continued - ie outlets of a certain size may open on Sundays and religious and public holidays.

Commentary

Despite the controversy caused by these new changes in working time legislation, their effects on the working time of the ordinary Norwegian employee remains to be tested. The greatest criticism has so far been directed at the changes made to the overtime regime. Trade unions are unanimous in their opposition to the changes made by the government. They contend that by relieving trade union representatives and the Labour Inspection Authority of their monitoring responsibilities, the government is preventing an effective regulation of overtime. Furthermore, the government’s own monitoring agency, the Labour Inspection Authority, has expressed some reluctance over the amendments. The Authority argues that such changes may create arduous working time arrangements in companies that are subject to extreme work or production peaks, or in companies suffering from significant labour shortages, and will thus endanger the health and well-being of employees (NO0209102N).

The government emphasise the voluntary aspect of its amendments, in that it is only the voluntary part of the general framework (overtime between 200 and 400 hours a year) that has been subject to change. However, the critics doubt that overtime will be voluntary, arguing that pressure from employers in many cases will force employees into more overtime work. With the control mechanisms now abolished, the critics argue, employers will be provided with an incentive to put pressure on individual employees.

The employer side has long called for changes to the legal framework and thus welcomes the most recent changes. Flexibility in the form of increased overtime is not necessarily the desired objective of the Confederation of Norwegian Business and Industry (Næringslivet Hovedorganisasjon, NHO), but in the absence of what it regards as reasonable opportunities in relation to the annualisation of working hours, a softening of overtime regulations will suffice. NHO is, however, disappointed with the fact that no changes have been made in relation to the conditions under which overtime may be used.

The changes in legal framework regarding overtime work have been implemented despite the fact that a public committee deliberating the AML, including working time, has not yet completed its work. Its report is due on 1 December 2003. As such, many of the critics argue that the changes are premature and ill-founded. Several parties in parliament called for a postponement in order to review these regulations in light of the rest of the legal framework. The supporters of the initiative argue that previous deliberations by committees have recommended such a simplification of the legal framework (NO9912167F).

The consequences of the legal changes made to shop opening hours are also still uncertain. The trade unions have been fighting for a long time to prevent an extension of opening hours, and won a significant victory in 1999 when rules were introduced restricting shops from opening in the evening and at night. The recent abolition of these rules has so far received limited attention, despite the fact that the unions were greatly opposed to the changes. Neither the unions nor the employers' organisations believe that this will lead to an extension of opening hours in the short term. This is due to the fact that many shops do not regard it as profitable to remain open longer than is the case at present, not least because they will have to pay their workers extra for working during evenings and nights, and because the customer base is limited during these hours. (Håvard Lismoen, FAFO Institute for Applied Social Science)