Hiring of workforce means a situation where an employee is hired from his/her employer to a client/third party, and is subject to the client's management and instructions during the hiring period.
Under the Norwegian Working Environment Act ("WEA"), the legal basis for the hiring depends on whether the employing entity is a temporary work agency or an undertaking whose primary objective is not hiring of workforce.
For temporary work agencies, the starting point is that the client/third party hiring the workforce must have a legal basis for hiring from the temporary work agencies. Generally, where the client/third party could have hired employees on a fixed term contract, the client/third party may also use hired workforce from the temporary work agency. The basis for fixed term employment is regulated in Section 14-9 of the WEA. From our experience, the majority of hire-ins are based on the two following alternatives; (a) where "the work is of a temporary character", or (b) for "work as a temporary replacement for another person or persons".
For hire from undertakings whose primary objective is not hiring of workforce, the possibility of hiring workforce is much more lenient, as long as the client/third party asks for services within the main areas of activity of the undertaking, and that not more than 50% of the workforce is hired out at the same time.
Please note that certain procedural requirements must also be adhered to relating to hiring of workforce, such as for instance consultations with the employee representatives within the client/third party. We will not elaborate further on these aspects here.