The new legislation will be applicable to employers which are part of a group of companies. In this context, a group of companies is defined as a parent corporation with one or more subsidiaries. A corporation is to be considered a parent corporation if the corporation has determining influence over another corporation through agreement or ownership.
Municipalities, county authorities, foundations and organizations can also be a parent company in this regard. The new legislation will only apply to Norwegian corporations. If the parent company is a foreign company with more than one subsidiary in Norway, the requirements will only apply to the Norwegian subsidiaries not to the foreign parent company.
The starting point is that all Norwegian companies within the group are in-scope of the obligation. However, it is the Ministry's intention that it will be possible to limit the scope to companies within the group which have the same kind of jobs or same kind of employees as the entity that is downsizing. The limitation must be justified, but also aspects such as geography or business sector would be relevant. It is a requirement that both the need to limit the numbers of group companies in scope and the limitation criteria are discussed with the employee representatives in advance.