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Arbitration

Norway

In January 2005 the new Arbitration Act entered into force in Norway. The act, adopted in 2004, provides a legal instrument which establishes a smoother, common and easily accessible way of solving disputes. The new act provides Norway with an adequate method for settling international disputes.

Aviation

Norway

Since June 1 2005 Norway has participated in the European Aviation Safety Agency (EASA) as a member of the management board without voting rights. The purpose of EASA is to promote common standards of safety and environmental protection in civil aviation. Among other things, membership means that several EU regulations concerning the aviation sector have been implemented in Norway.

In July 2005 the Ministry of Transport and Communication presented - within the area of the European Union - an open invitation for tender on scheduled regional air services in Norway for the period from April 1 2006 to March 31 2009. On November 2 2005 exclusive route assignments to four airlines were announced.

On January 1 2005 new regulations on the payment of fees relating to civil aviation business entered into force. As a result, most fees for registration with the Civil Aircraft Register have increased considerably, especially for the largest and most expensive aircraft. The new fees are intended to cover the expenses related to the Aviation Authority's services.

Corporate Immigration

Norway

In general, foreign nationals must have a residence and/or work permit in order to settle or work in Norway. In addition, for some nationalities a visa is necessary. However, different rules apply to different citizens. In the case of Nordic citizens, neither residence nor work permits are required.

Employment & Labour

Norway

Can employers enter into an agreement with employees to prevent them from resigning for a certain period of time? According to a recent Supreme Court decision, lock-in agreements may be acceptable if they are justified, balanced and reasonable. Should an employee breach the agreement, he or she will have to pay compensation to the employer.

Norway possesses a comprehensive legal framework in the field of employment. Direct or indirect discrimination and differential treatment are prohibited under the Gender Equality Act, the Anti-discrimination Act and the Working Environment Act. This update gives an overview of the Norwegian legislation in this area of law.

An employee is entitled by law to time off or a leave of absence in a number of circumstances, including pregnancy and childbirth, illness of a child, caring for relatives and education. The question of whether the employee is entitled to a salary or other financial payments during the leave of absence is regulated by the National Insurance Act and by any tariff agreements or individual agreements.

The new Working Environment Act, which entered into force on January 1 2006, prohibits direct or indirect discrimination in the workplace. The Gender Equality Act applies to discrimination based on gender in all areas of life. In addition, a new Discrimination Act and a new enforcement structure (the Discrimination Ombudsman Act) have been introduced.

The new Working Environment Act entered into force on January 1 2006. Among other things, the act contains a new chapter on information and consultation of employee representatives. Moreover, the act prohibits direct and indirect discrimination based on political views, membership of labour organizations, sexual preferences, disability and age.

The Supreme Court recently delivered a ruling on the legality of temporary employment contracts. The court argued that the plaintiff's contract bypassed the rules on temporary employment and employees' protection rights, and was thus an illegal temporary engagement. The court therefore granted compensation to the plaintiff.

More updates >

Energy & Natural Resources

Norway

During the past 10 years, the high-yield bond market has provided an alternative source of funding for less-developed companies and projects. To a large extent, this is a result of capital needs in projects for which traditional bank financing has been difficult to obtain, especially on competitive terms. Players in the renewable sector are therefore beginning to look to the bond market as a source of financing.

Article 30 of Directive 2004/17/EC contains an exclusionary provision for sectors which are directly exposed to competition, on approval of the European Free Trade Association Surveillance Authority. Several Norwegian power producers recently submitted a request to the authority for the application of Article 30.

Investing in wind power is becoming increasingly popular in Norway due to stable winds, an efficient market for physical delivery and hedging of exposure, and possibilities for foreign ownership. Recent legislation which provides financial support for new projects through the issuance of energy certificates that are tradable in Norway and Sweden has led to renewed interest in this sector.

The new green certificates bill, which was passed in June 2011, provides for the establishment of a market mechanism that will give renewable power producers green certificates based on actual power production. Power purchasers will have a statutory duty to buy the certificates, which must be redeemed every year, based on annual power consumption.

A report delivered by a committee comprising representatives from the oil industry and government administration in 2010 has proposed a shift of focus from exploration to development of existing fields that will favour the mayor players on the Norwegian Continental shelf. However, some of the proposals have been seen as controversial, such as the proposed changes to the voting rules in joint operating agreements.

To achieve flexibility in the electricity sector and market, and to ensure that the organisation of the sector helps to improve expertise and innovation, the Industrial Licensing Act has been amended to give domestic and international, and public and private, companies the opportunity to lease already built hydropower plants for a period of up to 15 years.

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Litigation

Norway

On May 18 2006 the Supreme Court will hear a principled case on lawyer-client confidentiality. The dispute concerns the limits of lawyer-client confidentiality following the client's death in a civil case. The Supreme Court decision is expected at the end of June.

The Dispute Act was passed on June 17 2005, but has not yet become effective. Section 29(13), Paragraph 2 of the act provides that the Court of Appeal may disallow appeals where the court is certain that the appeal will not succeed. The provision is a new development in civil proceedings, but is already employed in criminal proceedings.

The Interlocutory Appeals Committee of the Supreme Court recently ruled that a joint housing ownership does not have the capacity to sue and be sued where a claim regarding the property's common areas is based on an agreement to purchase an individual unit. The committee ruled that the individual co-owner - and not the joint housing ownership - must be party to the case.

The Norwegian Supreme Court has rejected a man's claim that a tobacco producer is liable for his cancer after it allegedly withheld information about the risks of smoking. The court held that strict liability did not apply as the product was not defective and it was publicly known in 1953, when the man started smoking, that tobacco could cause serious damage to health.

The Supreme Court recently held that the standard by which breach of contract with regard to share purchase agreements will be assessed is whether the underlying value of the company which the shares represent corresponds to what was agreed or could reasonably been expected, based on the purchase price.

A committee reviewing civil procedure has proposed the introduction of class action proceedings. If enacted, the proposals would increase the power of consumer watchdogs by allowing them to initiate civil lawsuits on behalf of the interests they represent, without having a claim themselves.

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