Have control over residence permits for foreign workers
The Morrow case illustrates a key issue relating to the use of foreign workers. According to information that has come to light in the media, the Morrow battery factory has estimated that its project in Arendal will have additional costs on the order of NOK 100 million as a result of delays caused by work bans for foreign workers without work permits.
According to information that has come to light in the media, the Morrow battery factory has estimated that its project in Arendal will have additional costs on the order of NOK 100 million as a result of delays caused by work bans for foreign workers without work permits.
In other words, major delays can occur on projects when critical personnel are denied entry or permission to work in Norway. Typically, the financial consequences come in the form of daily fines, interest, costs for hired equipment and wages that run even without productivity. Delayed completion of projects also results in postponed future earnings.
An incorrect interpretation of the rules on labour immigration can moreover lead to extensive sanctions and negative ripple effects. Workers may be expelled with a subsequent entry ban. Employers and Norwegian contracting parties risk loss of reputation, penalty fees and up to two years’ exclusion from being granted new work permits for their employees. In the most serious cases, the parties involved may be sentenced to imprisonment.
How can this be solved?
Citizens of countries outside the EU/EEA must as a general rule have a residence permit in order to work in Norway. Even though not all of them need an entry visa, this does not automatically give the right to perform work.
Citizens from such countries may apply for a residence permit as posted workers if their foreign employer has been given an assignment in Norway, or as directly employed by a Norwegian employer. Employment through staffing agencies also provides a basis for a residence permit, although this option has not been as widespread.
There are several exceptions to the requirement for a residence permit. Persons who participate in in-company training, as well as trade and business travellers, can work in Norway for up to 90 days during a 180-day period. The limitation of 90 days applies in total for all stays in the Schengen area.
Some groups, such as “technical experts”, may under certain conditions also be exempt from the requirement for a Norwegian residence permit for assignments of a maximum duration of 90 days.
Challenges associated with the solution for “technical experts”
In order to be categorised as a “technical expert” under the immigration regulations, the person must have technical expertise, and the assignment in Norway must consist of assembling, disassembling, inspecting, repairing, maintaining or providing information on the use of machinery or technical equipment.
What is considered technical expertise, what is covered by machinery and technical equipment, and how the 90-day limitation works for this group can be challenging to gain a good overview of.
For example, a technical expert who works in Norway from 1 March for one month cannot return and work on the same project with the same tasks from 1 August, even if the total length of stay in Norway is less than 90 days. Rotating technical experts to avoid the 90‑day limit is also not permitted.
Several technical experts may, however, work on the same project, either simultaneously or in overlapping periods, as long as the first and last working day on the project do not exceed a period of 90 days.
Take control
We often find that we are brought into cases at too late a stage. Initial mapping and advice will be central to ensuring that the project and the employee’s stay in Norway are carried out seamlessly and without negative consequences for the individual or the project. This in itself has a significant positive value. Without in-depth knowledge of the regulations, it can be difficult to understand what requirements the authorities impose in order to meet the conditions. There is no process for obtaining prior approval of any exemption from the requirement for a residence permit, and without a thorough assessment in advance there is a risk that the authorities may disagree with the assessments that have been made.
Employers and clients must have good routines for checking that both their own employees and the employees of subcontractors have residence permits that cover the work they are to perform in Norway.
This article was first published in Byggeindustrien.
