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Thursday, May 28, 2026

Employment law update - Commentary - Lexology

Summary of first half of 2023

During the first half of 2023, the Supreme Court handed down one judgment in employment law. The case concerned two tourism companies that had deducted tips given by guests to employees to cover the costs of employer's national insurance contributions and administration. The employees believed that the employers were not allowed to do this. The Supreme Court agreed and ruled that the tip was a financial gift from the guests that should be paid in full to the employees. The right to manage did not provide a basis for making deductions, even though the tip incurred costs for the employers in the form of both employer's national insurance contributions and administrative resources. According to the result of the judgment, the tips from the many outdoor restaurants during the summer must therefore be paid in full, unless the employer has provided employment contracts that expressly allow for deductions.

Those planning to holiday in Norway this summer can also assume that the service personnel are probably not hired from a temporary agency. Following a high level of activity on the legislative side, major restrictions on the ability to hire labour have been adopted, and several of the rule changes came into force during the first half of the year. One of the most important changes is that employers can no longer hire from temporary employment agencies on the grounds that the work is of a temporary nature (eg, seasonal work). After a few months of...



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