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Svalbard and Jan Mayen

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Svalbard and Jan Mayen

Notice period

In Svalbard and Jan Mayen, labor law principles are inherited from mainland Norway, meaning that the Norwegian Working Environment Act dictates the legal requirements for notice periods during employment termination.

The Working Environment Act establishes a minimum notice period of one month for both employers and employees initiating termination. This one-month period applies unless a collective agreement or a written agreement stipulates a different timeframe.

Starting the Notice Period

The notice period starts on the first day of the month following the notification. For instance, if an employer delivers a termination notice on March 15th, the notice period begins on April 1st.

Exceptions to the Minimum Notice Period

The one-month minimum can be shortened in specific situations:

  • Trial Period: During a probationary period outlined in the employment contract, a shorter notice period of 14 days applies to both parties unless a collective agreement or written agreement dictates otherwise.

  • Collective Agreements: Collective bargaining agreements established by employee unions and employer organizations may supersede the minimum notice period. These agreements can establish shorter or longer notice periods depending on the industry and specific job roles.

It is important to note that any agreement reducing the notice period below one month must be documented in writing.

Severance pay

In Svalbard and Jan Mayen, severance pay is not a common practice. The labor regulations in these regions primarily adhere to Norwegian standards, which do not mandate severance pay under ordinary employment termination circumstances. However, there are specific exceptions where severance pay may be applicable.

Circumstances Where Severance Pay May Apply

  • Unfair Dismissal: If a court determines that a dismissal was unlawful or unjustified, the employer may be ordered to pay the employee severance pay as compensation, according to the Norwegian Working Environment Act (Arbeidsmiljøloven). The amount of severance pay would depend on factors such as the employee's length of service, age, and the reasons for termination.
  • Collective Agreements: Some sectors or companies may have collective agreements in place that stipulate severance pay provisions exceeding those outlined by the law. Always check for any applicable collective agreement in your industry.
  • Redundancy Due to Downsizing: In cases of large-scale layoffs or business closure, employers may offer severance packages as part of the restructuring process. These are voluntary offers by the employer, rather than a legal mandate.

Important Considerations

  • No Statutory Right: In Svalbard and Jan Mayen, there is no general legal requirement for employers to provide severance pay upon standard employment termination.
  • Case-by-Case Basis: Severance pay entitlements are usually determined on a case-by-case basis, particularly in situations involving disputes over termination.

Termination process

Labor laws in Svalbard and Jan Mayen closely follow Norwegian regulations, specifically the Norwegian Working Environment Act (Arbeidsmiljøloven). This includes the termination process with the relevant legal considerations.

Types of Termination

There are two main types of termination:

  • Resignation by Employee: Employees have the right to resign from their positions by providing appropriate written notice.
  • Dismissal by Employer: An employer can terminate employment for cause, such as:
    • Valid Reasons Related to the Employee: Poor performance, misconduct, breach of contract, etc. These reasons must meet the legal requirements of objectivity and fairness as defined in the Working Environment Act.
    • Valid Reasons Related to the Company: Downsizing, restructuring, financial difficulties. Employers must follow specific procedures, including consulting with employee representatives.

Termination Procedure

The termination procedure typically involves the following steps:

  1. Written Notice: Whether the termination is initiated by the employer or employee, a written notice must be provided outlining the reason(s) for termination and the effective date.
  2. Consultation (Employer-Initiated Dismissal): In cases of employer-initiated dismissal, consultations with the employee and their representatives may be required. This process is outlined within the Working Environment Act.
  3. Right to Challenge (Employer-Initiated Dismissal): If an employee believes their dismissal is unjustified, they have the right to challenge the termination in court under the provisions of the Working Environment Act.

Key Points for Employers

Employers should keep in mind the following key points:

  • Documentation: Thoroughly document reasons for termination, particularly in cases related to employee conduct or performance.
  • Fairness and Objectivity: Ensure any termination decision is based on justifiable, objective, and non-discriminatory reasons.
  • Consultation: Comply with all required consultation procedures with employees and their representatives if applicable.
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