When an employee is summarily dismissed, the employment relationship is terminated immediately. The employer’s obligation to pay salary thus ceases immediately. The same applies to the employee’s duty to work. Because the consequences of a summary dismissal are so severe, Norwegian law imposes strict requirements–both on the grounds for summary dismissal and on the employer’s procedure.
Below is a practical guide to the applicable legal framework according to Norwegian law, typical situations where dismissal may be justified, and when to consult a lawyer. This guide is based on our experience in handling such cases for foreign clients. For assistance, you may contact us via chat, email or phone. Our lawyers are proficient in English.
1. Summary dismissal–The essentials
- Only a gross breach of duty or serious breach of the employment contract by the employee gives the employer the right to dismissal (cf. Working Environment Act § 15-14). The threshold is high, and a stricter burden of proof applies for the employer.
- Even if the employer labels the summary termination differently (e.g. dismissal with notice, termination agreement), it may still be considered a de facto dismissal if the employee is effectively forced out immediately.
- The Working Environment Act sets strict requirements for the employer’s procedure, including requirements for investigation, a discussion meeting prior to termination (cf. Working Environment Act § 15-1) and that the summary dismissal meet certain requirements as to form (cf. Working Environment Act § 15-4).
- A wrongful dismissal entitles the employee to re-entry (invalidity) and/or compensation. The largest compensation item is future loss of wages.
- Strict deadlines apply: 2 weeks to request negotiations, 8 weeks to file a lawsuit for reinstatement, and 6 months to claim compensation only. Exceeding these deadlines will usually mean losing the right to take legal action.
- A specialized employment law lawyer will be able to quickly assess the case and legal options–both for employers and employees.
2. What is a summary dismissal?
A summary dismissal is when an employer terminates the employment contract with immediate effect–with no notice period and no further salary. The employment relationship thus ends the same day.
Even if the employer refers to the summary dismissal as a dismissal with notice, resignation, mutual agreement etc, it may legally be considered a summary dismissal (de facto dismissal) if the employee is in effect removed on the spot. The actual outcome and underlying realities are what matters – not the label used by the employer.
We have written a general guide for dismissal which is available here. We have also written an e-book on Norwegian Employment law, which is available here.
3. The threshold for summary dismissal – what does the law say?
Because a summary dismissal is such a drastic measure, the legal threshold is high–significantly higher than for an ordinary dismissal.
According to Section 15-14 of the Working Environment Act, a summary dismissal requires that the employee has been guilty of:
🟥 Gross breach of duty, or
🟥 Substantial breach of the employment contract
In addition, the dismissal must not be considered a so-called disproportionate reaction. The proportionality assessment is broader where consideration for the employee and the company’s circumstances are also relevant. The Supreme Court has described this as follows in its ruling Rt. 2005 p. 518:
«The main question in the case is whether dismissal appears to be a disproportionate reaction … According to case law, the assessment is not based solely on the nature and seriousness of the breach in question. Dismissal must–after a broader overall assessment that also takes into account the employees and the company’s circumstances–not appear as an unreasonable or disproportionate reaction.»
👉 Lawyer tip: The rule of thumb for dismissal is that all other reactions, including dismissal, are deemed insufficient. If the case can be resolved through ordinary dismissal with notice, written warning etc, a summary dismissal must not be used.
4. Procedural requirements for the employer
A valid summary dismissal requires that the employer follows strict procedural rules. Procedural mistakes by the employer during the process, may lead to the dismissal being declared invalid, with a claim from the employee for compensation and reinstatement.
A summary dismissal might be unlawful due to errors made in the process even though it would have been lawful if done properly.
👉 Lawyer tip: A lawyer assisting the employee will typically begin by examining whether the employer has made any procedural or investigative errors, as such errors may render the dismissal unlawful without the need to assess the underlying ground for summary dismissal.
To ensure a proper and lawful process, the employer must usually take the following steps:
4.1. The factual basis must be thoroughly investigated
The employer must conduct a thorough and unbiased investigation. One of the reasons for this is a that the employer must be able to document the grounds for a summary dismissal, including its (correct) factual basis. In cases involving serious allegations (e.g. theft), courts require a stricter burden of proof (so-called qualified proof).
In practice, written documentation will weigh heavily. Rumours, opinions or gut feelings by the employer usually do not hold water. The same applies to the description of a breach of trust.
👉 Lawyer tip: If the employer suspects that there are circumstances that provide grounds for dismissal, but lacks documentation, one option may be to suspend the employee pursuant to Section 15-13 of the Working Environment Act. Suspension means that the employee is removed from the workplace and the employment relationship for a temporary period while the circumstances are investigated. The employee is entitled to salary during the suspension period.
4.2. The employer must react in a timely manner
The employer must act fairly quickly after becoming aware of the circumstances that may provide grounds for summary dismissal. A common mistake is that dismissal is based on older circumstances that the employer has «sat on» for too long.
📌 Remember: The duty to act only arises when the grounds for dismissal have been sufficiently documented/investigated. In other words, adequate examinations must always be carried out.
4.3. Discuss the matter with the employee before deciding on a summary dismissal
Before a decision of summary dismissal is made, a so-called discussion meeting pursuant to Section 15-1 of the Working Environment Act must be held, if practicable. Such a meeting gives the employee the right to explain themselves and possibly correct misunderstandings. A final decision on dismissal may, as mentioned, only be made after a discussion meeting has been held.
👉 Lawyer tip: The employer must ensure that the matter is discussed in accordance with the requirements of Section 15-1 of the Working Environment Act or be able to document that the employee does not want this. A lack of discussion may quickly render the dismissal invalid.
4.4. The summary dismissal must be in writing and comply with form requirements
The resignation must be in writing, and include:
- Information about the right to demand negotiation and legal action,
- The right to apply for re-entry under the Working Environment Act, Sections 15-11, 17-3 and 17-4.
- The time limits for demanding negotiations and filing a lawsuit, requesting re-entry
- Who is the employer and the defendant
The legal basis for the form requirements is laid out in the Working Environment Act, Section 15-4.
📌 Remember: The employer does not have to justify the dismissal in the dismissal itself, but the employee may demand a written justification afterwards.
5. Instances that may give grounds for summary dismissal
Since dismissal requires a gross breach of duty or material breach of the employment relationship, only certain types of breach of contract provide grounds for summary dismissal.
For example, the employer may not dismiss an employee for circumstances based on:
❌ The company’s conditions (downsizing or restructuring)
❌ Inadequate work performance / performance failure.
However, the following circumstances may qualify for dismissal:
5.1. Deliberate refusal of order or instructions
If an employee refuses to follow a clear, factual work order–without a valid reason–and it is deemed as a serious breach, this might provide grounds for summary dismissal. This could especially be the case if the employee acts in bad faith / is disloyal to the employer.
👉 Lawyer tip: Disloyalty may be defined as a deliberate disregard of the employer’s legitimate interests in favour of oneself or others.
It is required that the refusal to obey an order is serious enough to be considered a gross breach of duty.
Example: 🧾Rt. 1988 p. 1188:
In Rt. 1988 p. 1188, refusal to obey an order was not considered serious enough to provide grounds for dismissal–the court found that the employer should have used ordinary dismissal instead.
📌 Assessment points:
- Was the order within the managerial prerogative?
- Was the employee clearly informed of the consequences?
- Was the breach long-term or serious enough to qualify as a gross breach of duty?
- Was the employee acting in bad faith?
- Has the employee engaged in similar actions in the past?
- What is the employee’s role within the company, and what expectations may reasonably be placed upon him or her?
5.2. Financial irregularities or theft 💸
Financial misconduct, such as embezzlement, misappropriation, personal use of company funds, or unlawful access to cash or goods, may constitute grounds for dismissal. However, the conduct must be sufficiently serious and properly documented. A distinction is drawn between intentional acts for personal gain and minor or trivial infractions.
📌 Assessment points: The courts attach importance to the size of the amount, the employee’s position, motivation and how the employer has previously handled similar circumstances.
Example: 🧾Rt. 2014 p. 1161:
A store employee was dismissed following suspicions that she had taken cash from the register. The court noted that, although criminal embezzlement had not been proven, the alleged conduct could nonetheless be highly incriminating. However, the dismissal was overturned, as the evidentiary threshold in dismissal cases—a qualified preponderance of probabilities—had not been satisfied.
📌 Assessment points:
- Does the employer have reliable and timely evidence (video, cash discrepancies, witness descriptions)?
- Is the value, action or scope likely to break trust in the employee?
- Is it deliberate gain or trivial misdemeanour?
- Has the employer reacted in the same way in similar cases before?
📌 Note: Even small amounts may justify summary dismissal–especially in positions with financial responsibility or special trust–but you must document clearly and act within a reasonable time.
5.3. Harassment, violence or gross improper conduct ⚠️
Seriously abusive behaviour–e.g. sexual harassment, physical violence or physical or psychological threats.
Example: 🧾Rt. 2002 s 273:
A professor was legally dismissed after sexual harassment of a research fellow. The Supreme Court accepted the summary dismissal, emphasizing the clear imbalance of power and the gross breach of trust in an academic context.
📌Assessment points:
- Is the incident well documented through e-mail, warning, call minutes, etc.?
- Has the employer previously reacted in the same way or issued warnings, reprimands etc. for similar incidents?
- Is the behaviour in isolation serious and is it likely to threaten the working environment or the company’s reputation?
5.4. Breach of security or safety procedures 🔐
A serious violation of key health, safety, or environmental (HSE) regulations—particularly where such conduct may endanger life, health, or property—may, in grave cases, constitute valid grounds for summary dismissal.
📌Assessment points:
- Is the breach severe and/or repeated?
- Has the employee received adequate training and prior warnings?
📌 Note: Individual breaches are subject to stricter scrutiny in high-risk roles, such as offshore work, construction, or transportation. Whether the conduct is criminally punishable may also be relevant to the assessment.
5.5. Disloyalty or weakened trust🔁
Conduct that violates the duty of loyalty—such as generating negative publicity about the employer, undermining authority, engaging in undisclosed competing activities, or abusing one’s position—may constitute grounds for summary dismissal in serious cases.
Example: 🧾Rt. 2003 p. 1614:
An employee was dismissed after distributing serious and unfounded accusations regarding one of the employer’s clients. The court upheld the dismissal.
📌 Assessment points:
- Has the conduct impaired the employer’s trust, operations, or reputation?
- Has the employer made reasonable efforts to resolve the conflict through other means?
- Did the employee act with malicious intent or in a manner that undermines the employer’s legitimate business interests?
- Is the behaviour part of a pattern of conduct, or was it an isolated incident?
📌 Note: Summary dismissal must be assessed holistically. Statements alone do not justify dismissal unless they are grossly inappropriate, false, and clearly disloyal. Any such statements must also be evaluated in light of the constitutional right to freedom of expression.
6. What can an employee claim in the event of unlawful dismissal?
If an employee has been summarily dismissed without the conditions of the Working Environment Act being met, they may be entitled to various remedies. These include:
☑️ Reinstatement
If the court finds the summary dismissal invalid, the employee is generally entitled to be reinstated in their position—on the same terms as before. This applies even if the employer has already hired someone else.
☑️ Compensation for financial loss
The employee may claim compensation for lost wages, holiday pay, and other financial losses resulting from the dismissal. Courts have awarded compensation for lost earnings up to the date of judgment and, in some cases, up to two years’ salary for future loss. The key consideration is the likely duration of unemployment.
☑️ Non-economic damages
In cases of unlawful summary dismissal, the employee may also be entitled to compensation for non-economic harm, such as emotional distress or reputational damage. Typical amounts range between NOK 30,000 and NOK 150,000.
☑️ Conversion of summary dismissal to dismissal with notice
If the court finds that the employer’s actions did not justify summary dismissal, but still constituted grounds for ordinary dismissal, the summary dismissal may be converted to an ordinary dismissal—entitling the employee to salary during the notice period.
☑️ Negotiation and severance package
Many cases are resolved before the court–a lawyer may help the employee negotiate a good severance package, including financial compensation, references and confidentiality for both parties.
7. When should an employer involve a lawyer?🧑 💼
While not always necessary, it is generally advisable for employers to seek legal assistance in dismissal cases. Legal advice is particularly recommended if:
- You are considering dismissal and are uncertain about the legal grounds
- There is a risk of conflict, litigation, or negative publicity
- You want to ensure the dismissal process is legally compliant and well-documented
- You wish to avoid procedural errors that could lead to invalid dismissal or liability
- The employee has requested negotiations or initiated legal action
8. When should an employee contact a lawyer?🧑 💼
Employees are advised to consult a lawyer if:
- You have been dismissed or threatened with dismissal and dispute the grounds
- The dismissal is based on inaccurate information or misunderstandings
- You believe your procedural rights have been violated
- You are uncertain whether the dismissal is legally valid and want a professional assessment
- You need help negotiating a severance agreement or responding to the employer
- You wish to pursue a claim for reinstatement or financial compensation
📞 Need assistance?
Contact us today via chat, contact form, or email. Feel free to mention the article you have read when reaching out.
