Downsizing in Norway: your rights and opportunities when your job is at risk

Downsizing in Norway can come as a shock – especially for foreign employees. Your future may feel uncertain, your residence permit may depend on your job, and the rules are unfamiliar. This article gives a clear overview of the process, your rights, and how legal advice can help you achieve the best outcome.
Downsizing in Norway – employee consultation meeting

What does downsizing in Norway mean?

In Norway, an employer must be able to document both that there is a real need for downsizing and why you, specifically, were chosen.

Before any dismissal is decided, the employer must invite you to a consultation meeting (drøftelsesmøte). This is your opportunity to present your side, correct any errors, or highlight factors the employer may have overlooked. For many, this is the first critical moment where the outcome can change. See also Dismissal with notice – Norwegian Labour Inspection Authority and read more about our employment law expertise.

Note: Many decisions are made before the formal process begins. Employers often try to “solve the puzzle” internally before you are involved. The later you get involved, the fewer real opportunities may remain.

Turning rights into real options

Your rights are more than words on paper – they are tools you can use. The most important rights in a downsizing process include:

  • Right to a consultation meeting: You must be invited to a meeting before any decision about dismissal is made. This is your chance to present your perspective and correct misunderstandings.
  • Fair and transparent selection criteria: The employer must use fair and objective criteria. If the selection is limited to a small group without good reason, your chances may be unfairly reduced.
  • Consideration for other positions: You have the right to be considered for other suitable positions within the company or group, not just your own department. Read more at Termination of employment – redundancy (Altinn).
  • Social factors: Family responsibilities, age, and other social factors can and should be considered in the evaluation.
  • Notice period: You are entitled to a notice period, which gives you time to look for a new job. The length depends on your contract and seniority. See tables and rules in Termination of employment – redundancy (Altinn).
  • Severance packages: Sometimes offered, but their value may be limited if your residence permit requires active employment.

Our employment law team has extensive experience in downsizing cases and helps both Norwegian and foreign employees.

Special considerations for foreign employees

If your residence permit is linked to your job, a severance package may not be as valuable as it seems. In such cases, negotiating a longer notice period or other solutions may be more important than the size of the payout. Consider seeking advice from both employment and immigration law experts.See also UDI – Skilled worker permits and job loss.

It is not always clear which rules apply. For government agencies and ministries, the Civil Servants Act (Statsansatteloven) regulates employment. For state-owned companies that are organized as limited liability companies (AS/ASA), the Working Environment Act applies.

Language can also be a challenge. If it becomes a barrier, you have the right to an interpreter in meetings with public authorities and in court. In practice, this often makes it essential to involve a lawyer who can safeguard your rights throughout the process.

Practical steps if you are at risk

  • Gather documentation: Save all written communication and relevant documents.
  • Request written reasons: Ask for a written explanation of why you are being considered for downsizing.
  • Contact your union or legal advisor: Get advice early to understand your options and rights.
  • Prepare for the consultation meeting: Make a list of points you want to raise and questions you want answered.

The art of negotiation

Good negotiation is about more than legal knowledge. It requires calm, strategic thinking, and understanding the employer’s real needs. A constructive approach often opens more doors than an aggressive one. Ask the right questions:

  • Why you and not someone else?
  • Were the criteria fair?
  • When did the process shift from general downsizing to specifically targeting you?

The answers can reveal your real room for maneuver.

Transfers of business or projects

If your unit or project is transferred to another employer, you usually have the right to continue in your role on the same terms with the new employer. See Transfer of business – employee rights (Altinn).

Time limits you need to know

Once the formal process starts, the clock is ticking:

  • 2 weeks to challenge a dismissal
  • 2 weeks for negotiations
  • 8 weeks to file a lawsuit to claim your job back
  • 6 months if you only claim compensation

You also have the right to demand to stay in your position during a dispute, which means you continue to receive salary until the case is decided – often long after the notice period ends. For more information, see the Working Environment Act (English translation, PDF) and NAV – Unemployment benefits (dagpenger).

From uncertainty to action

There is no one-size-fits-all solution. The goal is always to secure the best possible outcome, whether that means keeping your job, negotiating better financial terms, or buying more time to find your next role. The best strategy depends on your personal situation and goals. But timing, knowledge of the process, and the right legal approach make all the difference.

Our advice: Get an early assessment while the most opportunities are still open. Contact our employment law team to discuss your options.

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Picture of Kanwal Suleman

Kanwal Suleman

Advokat

kanwal@advokatlippestad.no