Briefly explained: Changes in employment relationships - what can the employer decide?

Authors: Partner and lawyer Maria Elena Kvalen and lawyer Malin Stenseth

What is the right of management?

The employer has the right to organise, direct, control and distribute the work, but this must take place within the framework of the employment relationship that has been entered into.

Typical changes the employer can make:

• Hiring more employees
• Carry out dismissals
• Give promotions
• Change working hours
• Distribute work tasks
• Distribute holiday

Limitations on the employer’s right to manage

The employer’s right to manage is limited by the employment contract, job instructions, the law, tariff agreements and factual requirements. For example, the Working Environment Act requires that a dismissal must always be factually justified. The law also has restrictions on maximum working hours and overtime.

Whether you as an employer can make a change in the employment relationship depends on how significant the change is.

Can the employer change the employee’s work tasks?

As a general rule, the employer can always make minor changes and reallocations of work tasks in accordance with the right of management. For example, you can adapt the employee’s work tasks to new technology, equipment or systems in the business.

On the other hand, you will not be able to implement significant changes in the employee’s duties within the right of management. A clue could be whether the employee actually got a new position after the change.

Can the employer change the employee’s place of work?

Here, too, the question becomes whether the change is significant. The employer must assess its own needs against the consequences for the employee.

Relevant factors will be:

• Travel distance
• Travel time
• Transport options
• Social conditions
• Permanent or temporary change?
• The employer’s need to make the changes

Duty to accept the change

The employee is obliged to accept the changes imposed by virtue of the right of management. If the change is not accepted and complied with, the employee will be considered to be acting in breach of the employer’s instructions.

Changes beyond the employer’s right of management

If the change is outside your right of management, and the employee does not voluntarily accept the change, the change must be implemented by giving a redundancy and offer of alternative employment. Read more about redundancy and offer of alternative employment here.

TIPS:

• The employment agreement is binding - think through the text of the employment agreements
• In case of doubt as to whether the change is within the scope of the management right: choose the same process as for a redundancy and offer of alternative employment
• The employer has the burden of proof - therefore make sure it is in writing
• Always remember to update the employment agreement when there is a change

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If you are unsure about the process, we recommend that you seek legal assistance today. SANDS’ employment law team regularly assists employers who want to make changes in their business. Feel free to contact us.