In today’s market, hiring employees from outside Norway or sending employees to Norway happen frequently. Relocating employees to Norway is fully possible, but missteps can lead to costly delays and compliance headaches. Below, we outline the most common pitfalls to avoid.
Immigration pitfalls: Start work assignment without the right permit
The starting point is that all workers need a residence permit before starting in Norway.
Pitfall: Assuming employees can start immediately or misunderstand short-term exemptions for experts.
The immigration rules in Norway can easily be misunderstood. How long an employee can stay and who needs a visa or residence permit needs to be sorted before arriving in Norway. The requirements differ significantly depending on whether the worker comes from an EU/EEA country or from outside this area, and the duration of the assignment plays a crucial role in determining what documentation is needed.
Consequence: If you make a mistake, you can end up working illegally. Employees may be stopped at the border or unable to begin work, causing project delays and costs. The employee risks deportation and future entry bans to Norway and the Schengen area. Both parties may suffer reputational damage, and ongoing projects can be severely disrupted.
Solution: Processing times can be lengthy, so start the application process as soon as the need for foreign workers is identified.
Also read: Employee relocation—Norwegian residence permit requirements
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Employment law pitfalls: Overlooking contract rules, working hour rules and minimum wage regulations
Norway's Working Environment Act is strict. All employment contracts must comply with Norwegian standards.
Pitfall: Sending employees without compliant contracts or ignoring working time limits and minimum wage requirements.
Explanation: In Norway form demands and content requirements in employment contracts are strict, and you must ensure compliance. The Norwegian Working Environment Act sets comprehensive employee protection standards, and it's important to note that these same protections apply to foreign workers – there are no exceptions based on nationality or assignment duration. Additionally, there are strict rules on the length of working hours on a daily, weekly, and yearly basis. Employees are not allowed to work unlimited; however, it is possible to have more flexibility with an optional formal agreement to calculate average hours. Norway does also have minimum wages in nine sectors, including construction and electrician services. The minimum wage is usually updated once a year, and employers must stay informed of current rates.
Consequence: Contracts that fail to meet Norwegian formal requirements may be deemed invalid or need to be renegotiated, causing delays and legal uncertainty. Non-compliant contracts can also result in the employer being held liable for additional obligations that would have applied had the contract been properly drafted from the outset.
Underpayment can trigger substantial fines from the Labour Inspection Authority and create significant reputational risk for both the employer and client companies. Foreign workers who discover they have been underpaid or worked illegally may file complaints, leading to costly disputes and potential compensation claims.
Solution: Adapt contracts to Norwegian standards from day one, and plan working time arrangements carefully. Check if your sector is covered and adjust contracts accordingly. If you need employees to work beyond the standard 40-hour week, establish formal agreements for average calculation of working hours before the assignment begins. Document rotation schemes clearly, ensuring that extended working periods are balanced with adequate rest periods in compliance with Norwegian regulations.
Tax ID pitfalls: Forgetting ID check and tax card
All foreigners working in Norway must complete an ID check process and obtain a Norwegian tax deduction card before starting their work assignment.
Pitfall: Failing to book appointments in time or missing required documents at the ID check.
Explanation: All foreign workers in Norway must complete an ID check process to obtain an active D-number (temporary tax identification number) and a tax deduction card. The purpose of the ID check is twofold: to verify the employee's identity and to issue a D number and a tax card.
Consequence: Employer must withhold 50% tax until a tax card is issued.
Solution: Prepare documentation early (passport, contract, RF-1209 form) and book appointments before arrival. Appointment availability can be limited, particularly in peak periods, so advance planning is essential.
Also read: ID check for foreign employees in Norway
Taxation pitfalls: Misunderstanding residency and double taxation
The main rule is that foreign employees are subject to Norwegian taxation on income earned from activities performed in Norway.
Pitfall: Ignoring Norway's 183/270-day rules for tax residency and failing to consider tax treaty implications.
Explanation: A person who stays in Norway for more than 183 days within a 12-month period or more than 270 days within a 36-month period is considered a tax resident of Norway. The individual will be subject to global taxation in Norway starting 1 January of the income year when they exceed the 183/270-day threshold.
Consequence: When individuals become Norwegian tax residents, they will be subject to Norwegian taxes on their worldwide income and wealth, including all earnings and assets both within Norway and abroad, and even face exit tax when leaving.
Solution: Plan the length of assignments carefully and check relevant tax treaties to avoid double taxation. Monitor days spent in Norway closely to avoid unintentionally triggering tax residency.
Also read: Employee tax in Norway
Payroll reporting pitfalls: A-melding compliance
Employers must submit monthly salary reports through the A-melding system to the Norwegian Tax Administration.
Pitfall: Late filing or errors in reports or failing to submit A-melding when required.
Explanation: A-melding is a mandatory salary reporting system in Norway, requiring employers to submit monthly information to the authorities regarding employees' income, employment status, tax deductions and National Insurance contributions. The A-melding obligation applies to all employers with employees working in Norway, regardless of whether the employer is Norwegian or foreign, and regardless of whether the employee is tax liable to Norway or not. This is a critical point that many foreign employers overlook – even if your employee is exempt from Norwegian taxation, you must still submit A-melding reports.
Consequence: Automatic daily fines accrue from the Tax Administration until the A-melding is submitted or corrected.
Solution: Establish clear routines with designated responsibilities and ensure all A-melding reports are submitted by the 5th of each month to avoid automatic penalties.
Also read: What you need to know about Norwegian A-report (A-melding)
Social security pitfalls: Double payment
Foreign companies operating in Norway and their employees must contribute to the Norwegian National Insurance Scheme.
Pitfall: Not applying for an A1 form or exemption documentation to confirm home country social security coverage.
Explanation: The starting point is that under the Norwegian National Insurance Act, foreign companies operating in Norway and their employees must contribute to the Norwegian National Insurance Scheme. Thanks to international agreements that provide some flexibility in fulfilling these requirements, avoiding paying social security and employer contributions to Norway might be possible.
Consequence: Without proper documentation of home country social security coverage, employers and employees face double contributions in both Norway and the home country.
Solution: Secure A1 certificates or exemption documentation and register them with NAV well in advance of the assignment starting.
Also read: What employers must know about social security contributions in Norway
Corporate pitfalls: Home office creating a permanent establishment
Foreign enterprises conducting business activities in Norway may be subject to Norwegian taxation on income generated from these activities.
Pitfall: Allowing employees to work from a home office or office hotel in Norway without assessing the permanent establishment risk.
Explanation: Foreign enterprises conducting business activities in Norway are generally subject to Norwegian taxation on income generated from these activities under the Taxation Act. However, such income may be exempt from Norwegian tax if a tax treaty exists between Norway and the enterprise's home country. A crucial factor in determining tax liability is whether the enterprise maintains a permanent establishment in Norway, which may include a home office arrangement.
Consequence: May establish a permanent establishment (PE) for corporate tax purposes if core business functions are performed in Norway.
Solution: Conduct a thorough permanent establishment risk assessment before allowing employees to work from Norway, particularly for assignments exceeding six months.
Also read: OECD 2025—Guidance on home office permanent establishment risk
Avoid employee relocation pitfalls with professional guidance
The rules are complex, forms are often in Norwegian, and deadlines are strict. Even Norwegian companies dedicate teams to handle compliance. Planning before, during, and after a relocation project is key.
At Aider Legal, our global mobility advisors help you manage permits, contracts, tax, and reporting — ensuring smooth assignments and avoiding costly pitfalls.
CONTACT OUR GLOBAL MOBILITY ADVISORS
If you are sending employees to Norway or hiring from abroad, avoid pitfalls with professional assistance. Contact us today!
