New Enforcement Tools for the Norwegian Labour Inspection Authority

Starting July 1, 2025, managers of undertakings may be subject to administrative fines of up to NOK 3.254 million for violations of the Working Environment Act. The authority to impose such fines applies to violations of various legal provisions, including requirements for internal whistleblowing procedures and minimum standards for written employment contracts.

The amendments to the Working Environment Act will take effect on Tuesday, July 1, 2025. These new rules provide the Norwegian Labour Inspection Authority (Arbeidstilsynet) with more and robust enforcement tools. The measures are intended to prevent workplace crime and improve conditions for employees. Below is a summary of the new rules.

Duty to Provide Information for Third Parties

Currently, the Labour Inspection Authority can only collect information from undertakings under inspection. With the new amendments, the Authority will also be able to obtain information from other entities, such as suppliers, customers, or others who may possess relevant information. The collection of information must be necessary to uncover violations of the Working Environment Act and must be a proportionate measure. Furthermore, the Authority must have a legitimate need to obtain information from the specific entity in question.

If an undertaking refuses to cooperate, the Authority may impose sanctions to enforce the duty to provide information.

Authority to Secure Evidence

Until now, the Labour Inspection Authority has not had the power to secure evidence by, for example, entering premises or removing documentation without the cooperation of the undertaking. Under the new rules, the Authority may secure evidence when it is likely that specified provisions are violated, provided that such action is necessary and not disproportionately intrusive.
Evidence may only be secured with court approval. If there is not enough time to await a court decision, the police may seal off the area where the evidence is located until the court has made a ruling.

Expanded Authority to Issue Orders

The Labour Inspection Authority must always have unimpeded access to an undertaking for inspection purposes. Previously, if access was denied, the Authority could only report the matter to the police. With the new amendments, the Authority may issue an order. The Authority may also use enforcement measures to pressure an undertaking to comply, including coercive fines, halting the undertaking’s activities, and administrative fines.

Authority to Enter Premises Using Force

The law now explicitly allows the Labour Inspection Authority to take necessary measures to gain access to undertakings and their premises. For example, the Authority may use a locksmith, cut padlocks, or take similar actions to enter a location to which they are legally entitled.

Extended Deadline for Imposing Administrative Fines

The deadline for imposing administrative fines is extended from two to five years following the infringement.

Administrative Fines on the Spot

Under the new rules, the Labour Inspection Authority may impose administrative fines on the spot if the infringement is clearly ascertainable. In such cases, advance notification is not required. However, the other procedural rules in the Public Administration Act still apply, including those concerning the duty to clarify the case, state the grounds, appeals, and procedural requirements.
Clearly ascertainable infringements may include infringement of the rules regarding HSE cards for construction sites or staffing agencies lacking proper regulatory approval.

Requirement of Fault for Imposing Fines on Undertakings

The law now requires fault for imposing administrative fines. If an undertaking is to be fined, the undertaking itself or its management must have acted negligently or intentionally. This requirement can be met even if it is not possible to identify the specific individual responsible for the infringement.

The Authority has already been applying a fault requirement in practice; this is now codified in the new rules.

Administrative Fines for Individuals

A significant change is that the Labour Inspection Authority may now impose administrative fines on managers acting on behalf of the employer. Managers can be fined up to 25 times the National Insurance basic amount, currently NOK 3.254 million. Previously, only the undertakings could be fined.

The individual must have intentionally, or grossly negligently infringed provisions as referred to in Section 18-6, first paragraph of the Working Environment Act. The reference to 18-6 covers a range of provisions for which the Authority may sanction by imposing fines, if the conditions for imposing such fines are met. Examples include violation of requirements for written employment contracts meeting minimum standards, the duty to establish internal whistleblowing procedures, and unlawful deductions from wages or holiday pay. A manager who intentionally or grossly negligently violates these provisions may be personally fined.

The law specifies several factors to be considered when assessing whether a manager should be fined, including the scope and consequences of the violation, any benefits obtained or that could have been obtained, the offender’s culpability, and financial capacity. Consideration must also be given to whether there is reasonable cause to believe that the offender has structured, or will attempt to structure, the undertaking in such a way that to impose a fine to the undertaking would not be sufficiently effective.
Imposing fines on individuals will be particularly relevant if sanctions against the undertaking alone are deemed insufficient. The Labour Inspection Authority may impose fines on both the undertaking and an individual for the same violation.

Police Assistance and Use of Force

The police are required to assist the Labour Inspection Authority when necessary and upon the Authority’s request. In providing such assistance, the police may use force to the extent necessary and reasonable.