Part-Time Workers in Norway May Be Entitled to Overtime Pay From the First Hour Worked

A recent court case in Norway is challenging the traditional understanding of overtime pay for part-time employees, potentially costing municipalities billions of kroner annually. The case centers around André Kaldal, a 27-year-vintage from Sarpsborg, who successfully sued his employer, Coop Obs Bygg Tune, for overtime pay for hours worked beyond his contracted part-time hours.

The Kaldal Case and the EU Directive

André Kaldal worked nearly 3,000 hours over his contracted hours over a three-year period. He argued, with the support of the Landsorganisasjonen (LO) and Handel og Kontor (HK), that he was entitled to overtime pay from the first hour worked beyond his agreed-upon fraction. The Søndre Østfold district court agreed, ruling that denying overtime pay would be contrary to the EU’s part-time directive.

Currently, Norwegian practice dictates that part-time employees only grow eligible for overtime pay after working the equivalent of a full-time position. This ruling challenges that practice, aligning with recent EU court decisions that deem it discriminatory to require part-time workers to reach full-time hours before qualifying for overtime pay.

Potential Financial Implications

The ruling, while not yet legally binding as it has been appealed to the Lagmannsretten (Court of Appeal), has sparked concern among employers, particularly municipalities. KS, the employers’ organization for municipalities, estimates that extending overtime pay to part-time employees could increase costs for Norwegian municipalities by around NOK 2.5 billion per year.

Currently, approximately 713,000 people in Norway are employed in part-time positions. This ruling could affect a significant portion of the Norwegian workforce.

Reactions from Labor and Employer Organizations

LO believes the ruling could lead to more accurate job fractions that reflect the actual hours worked by part-time employees. NHO, however, fears the opposite – that employers may choose to hire fewer full-time employees and increase reliance on part-time positions to avoid overtime costs.

What Should Part-Time Employees Do?

According to Atle Sønsteli Johansen, head of LO’s lawyers, part-time employees who believe they are owed overtime pay for the past three years can contact their employer, union representative, or union. However, claims are subject to a three-year statute of limitations.

Concerns Regarding New Contracts

Some municipalities are now asking part-time employees to sign new contracts that waive their right to overtime pay. The Norwegian Nurses’ Organization (NSF) strongly advises against signing such contracts, calling them “near fraud and deception.”

The case is expected to continue through the legal system, potentially reaching the Supreme Court. André Kaldal remains prepared to continue the fight, stating, “I was prepared for an appeal, so it was not surprising. I’m ready for the fight ahead!”