The Norwegian Working Environment Act distinguishes between additional work (work performed beyond agreed working hours but within the limits of ordinary working hours) and overtime (work performed beyond the limits of ordinary working hours). Only overtime gives rise to the statutory overtime premium, which is at least 40 per cent.
This means that a part-time employee may work considerably beyond their agreed percentage of full-time employment without being entitled to overtime pay. The overtime premium only becomes payable once the employee exceeds the same threshold that applies to full-time employees.
The Court of Justice of the European Union (CJEU) has challenged this model. In relatively recent judgments, the Court has concluded that applying the same threshold for overtime pay means that part-time employees must work proportionately more than full-time employees before becoming entitled to the overtime premium – and that this constitutes unlawful discrimination.
The Working Group
The tripartite working group appointed to assess the rules in light of the CJEU judgments and the two Norwegian District Court judgments handed down earlier this year submitted its report, Part-Time Work: Additional Work and Overtime Pay, to Minister of Labour and Social Inclusion Kjersti Stenseng on 15 September 2026.
The report reveals a clear and fundamental disagreement between the employer and employee organisations.
On one side are NHO, KS, Virke and Spekter, which take the view that the main features of the current model can be maintained within the framework of EEA law. On the other are LO, Unio, Akademikerne and YS, which consider that the CJEU judgments require changes to Norwegian law. The working group has therefore not reached a common conclusion.
Below, we outline some of the parties’ main positions.
The employer’s position
A new overtime model is not required: The employers’ principal argument is that the CJEU judgments cannot be interpreted as requiring overtime pay from the first hour worked beyond an employee’s agreed percentage of full-time employment. Although equal treatment is required, the employers argue that Norway retains a degree of national discretion as to how this is implemented.
The overtime rules cannot be considered in isolation: The rules form part of a broader regulatory framework. The employers point, among other things, to their interaction with the statutory objective of full-time employment, preferential rights, the right to a position corresponding to actual working hours, and the rules on reduced working hours. Changes to the overtime rules could therefore have consequences for several other parts of the Working Environment Act and affect the overall balance of the regulatory framework.
Flexibility is important – also for employees: The employers emphasise that the opportunity to combine part-time employment with additional work is valuable to employees who, for various reasons, want flexibility.
If additional work becomes significantly more expensive, employers may become less willing to offer extra shifts or hours. This could reduce flexibility and, in some cases, make it more difficult to enter the labour market.
Risk of fewer full-time positions: One key practical argument is that overtime pay from the first additional hour could have an unintended effect on full-time employment. An employee in an 80 per cent position who receives overtime pay for work performed between 80 and 100 per cent may have a financial incentive to remain in an 80 per cent position and take additional shifts rather than move into a permanent full-time position.
The costs could be significant: Fafo has estimated a theoretical annual cost increase of approximately NOK 10–11 billion if the current level of additional work largely continues but is remunerated as overtime. Approximately 60 per cent of this cost would arise in the public sector.
The employee’s position
The current model constitutes unlawful discrimination: The employee organisations’ position is that the current overtime model treats part-time employees less favourably than full-time employees and must therefore be changed, as this is precisely the type of unequal treatment that the CJEU has found to be unlawful.
Labour market considerations cannot justify unequal treatment: The employee organisations reject the argument that general considerations relating to flexibility, staffing requirements or promoting a culture of full-time employment are sufficient to justify maintaining the current model.
Voluntary additional work should not result in lower compensation: The employee organisations consider that there should be no general distinction between voluntary and required additional work. Where part-time employees work beyond their agreed working hours, they should be entitled to equivalent compensation.
The current rules create incentives for small part-time positions: Where part-time employees can work significantly beyond their agreed percentage without receiving overtime pay, this may provide employers with a low-cost staffing model. The employee organisations therefore argue that making additional work more expensive could give employers a stronger incentive to offer larger positions and improve baseline staffing levels.
A clear gender equality dimension: Approximately two-thirds of additional work is performed by women, and part-time employment is considerably more common among women. The employee organisations therefore argue that the difference in compensation has a clear gender equality dimension, affecting matters such as income and pension entitlements.
What happens next?
The next stage of the process concerns not only whether the overtime rules should be amended, but also how a new model should be designed – and which other rules concerning part-time employment, working hours and staffing need to be considered in connection with any changes.
The Court of Appeal is due to hear the first appeal in November. Its decision will be significant for the continuing discussion on how Norwegian law should be structured in this area.
Until more definitive clarification is available, employers should:
- Review and map the organisation’s overall use of part-time employees
- Establish how much additional work is actually being performed
- Identify positions that may be particularly affected by a change in the rules
- Keep abreast of legal developments
Do you have questions about the overtime rules or employment law more generally? Please feel free to contact our lawyers.
