Nordic Employment Law Bulletin - September 2025

Awaited Supreme Court Ruling May Reshape Dismissal Practice: The Norwegian Supreme Court has heard a case that could set an important precedent in dismissal practice in Norway. The hearing took place on 12 August 2025, and a ruling is still pending.

The case concerns a nurse who was summarily dismissed after striking a patient in the face with an open hand. while the nurse argued that the action was a defensive response to prevent harm. The Court of Appeal previously found the dismissal unlawful, ruling that it could not even be upheld as an ordinary termination. 

The majority of the Court of Appeal emphasized that the employer had failed to carry out the broad assessment required in dismissal cases. In particular, the employer had not considered reassignment to a 100% administrative position, despite the fact that the nurse already held a 40% administrative position in addition to clinical duties.

The Supreme Court’s forthcoming decision is therefore expected to clarify whether – and to what extent – an employer must explore reassignment before resorting to summary dismissal, even in cases of alleged gross misconduct.
 

Norwegian Parliamentary Election on 8 September: What's next for labour law? Norway is heading to the polls on 8 September. For the past four years, the Labour Party has led the government, during which time several significant changes have been introduced in employment law – including stronger employee protections and several initiatives aimed at securing working life.

The upcoming election could mark a turning point. A possible change in government could introduce different priorities and a new direction for labour market policies in Norway. While it is too early to predict concrete outcomes, businesses and HR professionals should be aware that the political landscape after an election may set the tone for future labour market regulation in Norway.
 

Court of Appeal Ruling on Compensation due to Unlawful Dismissal  – LB-2025-2992 On 11 August 2025, the Court of Appeal ruled in favor of a sales employee, finding his dismissal unlawful and awarding compensation.

The employee. hired in March 2023, had signed a severance agreement providing that his employment would end on 31 March 2024 unless certain sales targets were met. Before the deadline, he secured a Master Service Agreement exceeding the contractual threshold. The employer nevertheless disputed its relevance and brought the employment to an immediate end. 

The Court of Appeal concluded that the contractual conditions had been satisfied, and that the termination was in reality an unlawful summary dismissal. The employee was awarded compensation for 18 months’ lost salary, holiday pay, pension contributions, and variable remuneration (bonus/commission). He also received NOK 90,000 in non-economic damages, a level above the ordinary range due to the seriousness of the employer's actions.

The judgment underscores the importance of drafting clear and precise contractual terms between employers and employees. The case also provides guidance on the level of non-economic damages that may be awarded in cases of unlawful dismissal or unfair termination.

Fake it till you make it, or not - The Swedish Labour Court has clarified evidentiary standards for electronic signatures in a case involving alleged document forgery. The dispute centered on whether an employee had genuinely resigned by way of a verbal resignation and thereafter signed a termination document on an iPad, or whether the employer had fabricated the resignation.

The Swedish Labour Court extended already established precedent regarding handwritten signatures to digital formats, maintaining that employers bear the burden of proving document authenticity when forgery is alleged. However, the evidentiary threshold for the employer to prove that the document is real remains at "predominantly probable" rather than absolute certainty - a standard that recognizes that written documents with a signature is a proof in itself. 

In this particular case, the employer's evidence proved decisive: two independent customer witnesses testified that they observed the employee signing the resignation document. Despite circumstances supporting the employee's position, the Swedish Labour Court found the employer had met the required evidentiary standard.
 

Doing the right thing should be easy, the Government is aiming for simplified employer compliance checks -  The Swedish government has tasked the Migration Agency to propose digital solutions aimed at helping employers navigate third-country worker verification requirements more effectively. The initiative is supposed to make it easier for employers, who risk both criminal penalties and administrative fees for hiring workers without proper work permits, to follow the necessary checks.

The Swedish regulations impose significant liability on employers as criminal sanctions apply for employing third-country nationals without valid work permits, additionally authorities can impose special fees in such situations. The deadline for the Agency's proposal to be submitted is 31 March 2026.