European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
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The definition of the term 'undertaking' (or part thereof) is defined in line with that of the European Court of Justice (ECJ). This means that in order for Norwegian legislation to apply, the unit being transferred must be an independent economic unit. The basic requirements are a minimum of organisational independence, while being comprised of an organised group of people and assets which enable the unit to be involved in economic activities. Moreover, Norwegian law uses the seven indicators as defined by the ECJ to decide whether a transfer of undertaking has occurred. These are:
These rules do not apply in cases of the purchase of insolvent enterprises or if a change in stocks or shares equate to a technical change in ownership.
The regulation lays down an obligation for the former and new employer to provide information concerning the transfer and discuss it with the employees’ elected representatives. If this obligation is not met, the employer may see a sanction. The act does not specify whom to consult if there is no elected representatives, but most companies will have one as they are obliged to elect a safety deputy in all companies with at least 10 employees. This shall be done as early as possible. The information shall cover:
If the previous or new owner is planning measures (not further specified in the act) in relation to their respective employees, they shall consult with the elected representatives as early as possible on the measures with a view to reaching agreement.
The purpose of the regulation is partly to give employees access to information about what is going to happen, and what kind of consequences this will have for them, and partly to give the elected representatives a possibility to influence the decisions that are taken. The representative shall be informed before the employees in order to be able to influence the decision.
Eurofound (2015), Norway: Staff information and consultation on business transfers, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-business-transfers/norway
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