Government to review limitations on overtime work

The Norwegian government's Budget for 1999 provides for the establishment of a joint committee to consider the various provisions in the Act on Worker Protection and the Working Environment. One matter which the committee will discuss is the extent to which the current shortage of labour in many sectors requires the easing of the Act's limitations on overtime work.

In the state budget proposal for 1999, the Norwegian government proposes to establish a joint committee to consider the various provisions in the Act relating to Worker Protection and the Working Environment (WEA, Act of 4 February 1977 No. 4). One issue which the committee will consider is the provisions regulating working hours.

The new budget proposal suggests that the current conditions in the Norwegian labour market, together with general social developments, might require greater working time flexibility. The committee will focus on the extent to which the present shortage of labour in many sectors requires a reconsideration of the WEA's limitations on overtime working. The WEA limits the amount of overtime as follows: in the course of a week to no more than 10 hours; in a period of four weeks to no more than 25 hours; and during a year to no more than 200 hours. In addition, the WEA stipulates that overtime work should be compensated for by a pay premium of not less than 40%. The WEA also permits additional increases in overtime work in excess of the legal provisions by agreement with the relevant unions or by a decision of the company working environment committee.

The committee's focus on weekly/monthly overtime work may indicate that the government is particularly worried that the provisions concerning overtime work in the WEA are acting as impediments to short-term flexibility. The committee will be asked to produce a report as soon as possible to enable any amendments that might be required in the Act.

Employers and trade unions have yet to respond to the government's proposal to review the limitations on overtime work. In accordance with general practice, both sides of industry will be represented on the committee. Traditionally the employer side, which has frequently expressed worries about the present use of overtime in Norway, has been more accommodating towards easing overtime limitations than the trade union side. However, the Norwegian United Federation of Trade Unions (Fellesforbundet, FF) - the second largest affiliate of the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO) - and the Federation of Norwegian Professional Association (Akademikernes Fellesorganisasjon, AF) have stated that they are reluctant to consider any easing of the statutory limitations on overtime work.