Governing law

Retrieved from Yrkestrafikk edition 2 in 2023

To find the answer, you must first look at your employment contract, and then at any collective agreements and relevant legislation. If none of these contain provisions that answer the question, this is probably something the employer can decide.

What is governance?

The employer's right to manage is defined as the employer's right to organize, direct, control and distribute the work. In simple terms, it is the right the employer has to decide over its employees and how the work is to be performed. There is no legal provision that states exactly what the employer's right to manage is and how it is to be exercised. Instead, there are legal provisions about what the employer cannot do. This is because the employer's right to manage is limited by the employment contract, collective agreements and applicable laws, such as the Working Environment Act and the Holiday Act. What is not determined elsewhere, the employer can generally decide by virtue of the right to manage.

As long as the employer does not violate laws, collective agreements or the employment contract, the employer can make decisions about the employment relationship of its employees, if necessary against the employee's will.

Now it may sound as if the employer can decide a lot, without the employee wanting it. That is not true. It is important to remember that in Norway we have a comprehensive working environment law, which protects employees and places major restrictions on what the employer can decide. In addition, many companies are also bound by collective agreements that place further restrictions on the employer. The most important aspects of the employment relationship are often also regulated in the employment contract. What is decided in the employment contract cannot simply be changed without a new employment contract.

Why governance?

Wouldn't it be better if everything was regulated either in the employment contract, collective agreements or through legislation?

As employment relationships are usually long-term, it will not be possible to anticipate everything that may arise in the company and all the decisions that need to be made before the employment relationship is entered into. The employer will need to make ongoing decisions along the way that also affect individual employees. 

In addition, although many legal provisions specify certain limits that employers must adhere to, they still leave a certain amount of room for the employer to decide. For example, this applies to provisions on the time for taking vacations in the Holiday Act and on working hours and overtime in the Working Environment Act.

What can be determined?

To answer the questions initially, overtime is regulated in the Working Environment Act and collective agreements, and can be imposed when necessary. The salary must be determined in the employment contract or collective agreement. The employer cannot therefore reduce your salary against your will. The place of stationing will often be determined in the employment contract. Some employment contracts state that "the place of stationing is currently ...". If the employment contract contains such a reservation, the employer can change the place of stationing if necessary. Unless you have a provision in your employment contract about which truck you will drive, the employer can decide that tomorrow you must drive a Volvo instead of a Scania. This is of course not something that is regulated in either the Working Environment Act or collective agreements.

If you disagree…

If it turns out that the decision is within the employer's control, it will constitute a refusal to comply with the order not to do as the employer has ordered. You should therefore comply with the employer's decision, but state that you disagree with the decision. You should then examine your employment contract and contact your union representative.

Sometimes it turns out that the decision is outside the employer's control. In such cases, the employer cannot implement the change without terminating the current employment contract and at the same time offering a new employment contract that includes the relevant changes. This is called a termination with modification. The same rules apply to terminations with modification as to regular terminations. 

Other times, it will be concluded that the change is within the scope of the management right. Nevertheless, through dialogue and a little goodwill from both parties, it will be possible to arrive at a solution that both employer and employee can accept. Here, shop stewards can be of great help.