Working in Norway: What you need to know about social dumping

Norway gets plenty of good press for how workers are treated through robust regulations put in place by unions and a safety net of laws from the government. 

Despite that, people still sip through the cracks, and workers fall victim to shoddy workplace procedures, illegal practices and unfair wages. 

In Norway, this practice is referred to as sosial dumping (social dumping). Essentially, social dumping refers to poor and illegal work practices that see workers receive significantly poorer pay and working conditions than is typical in Norway. 

These practices disproportionately affect foreign workers, as they are less likely to know the proper working practices in Norway or where to go if their rights have been infringed. 

Social dumping is a catch-all term that covers everything from breaches of health and safety, breaking the rules on working hours, and wages and benefits being unacceptably low. 

It also covers crimes that see employers profit from exploiting workers, the tax rules and working regulations. 

Norway doesn’t have a universal minimum wage, with wages instead dictated by collective bargaining agreements. Some industries do have an enforceable minimum wage, though. 

How does social dumping happen if there is a minimum wage in some industries? 

Typically, these are industries with a high number of foreign workers and where unionizing is difficult due to the high turnover. Hospitality and construction are two areas where there is a minimum wage. 

Even with such a minimum wage, workers still have their salaries stolen or are paid under the minimum wage. 

One way companies do this directly or indirectly is through subcontracting. Rouge traders may subcontract out to cheap foreign labour and pay them below the Norwegian minimum wage to net a better profit or garnish workers’ wages as a “fee” for accommodation or arranging the work to the extent they earn below the minimum wage. 

Some foreign workers accept this wage because despite being below the minimum wage for the industry, it is still more than they would earn in other countries.

Others look the other way because they may not be paying taxes. They may also be threatened with firing or having their wages withheld if they complain. 

Companies, sub-contractors and rogue traders that outsource work illegally often provide the people they bring in to do the work with incorrect information.

Rogue employers may pay the minimum wage for an industry, but workers may be working longer than what is registered and may not receive overtime. This, on paper, makes things appear above board but still means the workers earn less than minimum wage. 

A payslip showing fewer hours than what you’ve worked is one of the telltale signs of wage theft. 

Double contracts are also another way in which workers may be exploited. They may be presented with one contract in the employee’s native language and be told it is in line with Norwegian regulations when it isn’t. 

Meanwhile, a second contract that exists in Norwegian or English may be kept in case the employer is visited by the Norwegian Labour Inspection Authority to make things appear legitimate. 

Research has found that workers from outside the Nordics were at higher risk of poverty, homelessness and work-related death and more likely to be denied support from the state to which they are entitled. 

‘Lufting’

Lufting doesn’t typically fall under the same umbrella as social dumping but is another common issue that other industries in Norway suffer from. 

Unlike social dumping, lufting affects Norwegians as well as foreign workers. This primarily affects workers who are ‘on call’, are not full-time employees of the company, do shift work, or are freelance. 

Essentially, companies freeze out temporary workers or find them assignments with other firms to ensure that they do not trigger the worker’s right to a full-time position within the company. 

Once the right to a full-time job lapses, the employer typically brings the worker back into the fold. 

The practice is common within the media industry in Norway and other sectors. 

A key difference between social dumping and lufting is that social dumping, in almost all cases, is illegal, whereas lufting is legal and exists as a loophole which companies exploit. Lufting can happen in industries with high union membership and where workers may be highly paid.

What can you do if you think your work rights have been violated? 

The Norwegian Labour Inspection Authority (Arbeidstilsynet) governs working law in Norway. It has a service specifically for foreign workers in Norway.

If you suspect your employer has exploited you, the best practice is to get in touch with the Norwegian Labour Inspection Authority. 

Should you speak to your employer, it is advisable to keep a record of all correspondence, conversations and incidents in relation to your issue should the problem escalate and you wish to take further action later on. 

Is the government doing anything? 

One of the main goals outlined in the political agreement on which the current government was formed was to ensure more full-time jobs and less social dumping in Norway. 

Earlier this year, the Norwegian government introduced rules to crack down on the use of temp and recruitment agencies. Over the previous two decades, these companies have increased in number, often funnelling workers from outside Norway into the country. 

For many, these agencies offer the first step into working life in Norway and one of the main avenues for foreign workers to find work. 

However, unions and the government felt they were destroying the need for full-time jobs and undermining Norwegian wages and working conditions. 

This law has been met with strong opposition, and the Efta surveillance authority – an association between Norway, Lichenstein, Switzerland and Iceland, which operates parallel to the European Union – has said the law breaches the EEA Agreement.