Norwegian IT Freelancing Lives...?

Throughout the year, there has been a great uncertainty on how the Norwegian IT freelancing market will develop as there will be new regulation coming into force on January 1, 2024. There is a lot of conflicting information on the interpretation of the regulation.

On 1 April 2023, the rules for hiring workers from staffing companies were tightened. The background for this change was to regulate the building and construction industry, mainly in and around Oslo, and thereby prevent social dumping. In addition to regulating a specific industry, the law has been revised and all industries will be affected to a greater or lesser extent - including the IT industry. In addition to this change, from 1 January 2024 there will be a requirement that labor hire companies are approved as staffing companies. This means that all businesses whose purpose is to hire out labor in Norway must be registered and approved as a staffing company with the Norwegian Labor Inspection Authority.

The background for the confusion and uncertainty around the regulation was that the eligibility of one-person companies to be included in approved companies that can hire labor. (Edit: as of November 20, we have confirmation that one-person companies cannot be included. The uncertainty continues on what constitutes as hiring and what constitutes as selling services. Keep up to date on our information package on the Witted Partners website.)

Long live freelancing

There were many unanswered questions on which companies the rules applied for and which companies can register as staffing companies. The responses and instructions from authorities were conflicting and uncertain in nature.

At one point it seemed that one-person AS companies - which is the majority of our Witted Partners - might not be able to register and thus in danger to lose their current and future projects. Luckily, we have the confirmation now that this won't be the case. (Edit: as of November 20 this doesn't apply anymore – the previous instructions were overridden. One-person AS companies cannot register.)

We have gathered an ever-updating information package for Norwegian IT freelancers on the new staffing regulation on the Witted Partners website.