Collective agreements with Samfunnsbedriftene

Energy Agreement II NITO - Samfunnsbedriftene 2024 - 2026

On this page you will find Energy Agreement II, which is NITO's main collective agreement for energy companies and subsidiaries with independent membership in Samfunnsbedriftene. The agreement is valid for the period 01.06.2024 to 31.05.2026.

Co-determination for NITO's members in the energy companies affiliated with Samfunnsbedriftene is regulated through the Basic Agreement between KS and Akademikerne – Part A and Part C

Part B Energy Agreement II

Protocol Entries

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§ 1 General 

The Basic Collective Agreement applies to employees of energy companies and subsidiaries with independent membership in Samfunnsbedriftene.

Special agreements must be drawn up for any supplementary provisions to this collective agreement at the individual company; The Basic Agreement, Part A, Section 4-5.

§ 2 Appointment and dismissal

§ 2-1 Employment

Appointments are made in accordance with the provisions of the Working Environment Act.

When applicants are equal in terms of qualifications, priority is given to gender balance and seniority.

§ 2-2 Termination

Termination is made in accordance with the provisions of the Working Environment Act.

For permanent employees after a probationary period, a mutual notice period of 3 months from the date of termination generally applies.

Section 2-3 Relocation

In the event of redeployment or transfer to a lower-paid position in the same company due to injury, illness, rationalisation or other reasons that are not due to the employee's circumstances, the employee shall, as a general rule, retain his or her current salary as a personal arrangement.

Section 2-4 Restriction, rationalisation

In the event of a reduction or rationalisation, those with the shortest service within the relevant area of work in the company shall, under otherwise equal conditions, be dismissed first. cf. the Basic Agreement, Part C, Section 3-1. When calculating seniority, the total length of employment in the enterprise/group is used. Before restriction/rationalisation is implemented, the local parties must discuss the possibilities of severance pay schemes.

§ 2-5 Hiring, hiring out and outsourcing of work

The parties agree that it is important to work to ensure that the sector is attractive and serious, and that temporary agency workers have orderly pay and working conditions.

The parties are concerned with preventing unreasonable pay and working conditions (social dumping).

The company is responsible for ensuring that the lessor/subcontractor has orderly pay and working conditions for its employees. At the request of the employee representatives, the company must provide access to relevant information. If the union representatives perceive the conditions as unreasonable in relation to central collective agreements in the area, this can be discussed with the company. If discussions do not get underway, either Party may request assistance from its respective key parties.

Employees of staffing companies/temporary employment agencies shall, for the duration of the hiring period, have the same pay and working conditions as apply in the hiring company. The provisions on hiring from staffing companies/temporary employment agencies are further regulated in Appendix D to this agreement.

§ 2-5-1 Hiring in and hiring out of labour

The hiring and hiring out of labour in accordance with Chapter 14, Section 14, 12-14 of the Working Environment Act, shall be discussed with the employee representatives as early as possible in accordance with Part C of the Basic Agreement, Sections 3-1-1 and 3-1-2 of the Basic Agreement.

§ 2-5-2 Outsourcing of work

The outsourcing of work shall be discussed between the parties, cf. Section 3-1 of the Basic Agreement, Part C.

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§ 3 Salary provisions

§ 3-1 Salary principles

The local parties hold wage policy discussions at least once a year prior to the annual local wage settlement. At this meeting, the employer must present the necessary figures such as the company's accounts, financial status and future prospects, and the parties must explain their views and priorities in advance of the local negotiations. Minutes of the discussion meeting must be kept.

At the request of employee representatives, the company must provide salary information for all employees in accordance with applicable legislation and the Data Protection Authority's recommendations.

Salaries are determined according to the company's payroll system; Section 3-3. 

Wage differentiation between employees in a company shall be carried out in accordance with criteria laid down by the local parties; Section 3-3. 

All inconvenience allowances, on-call allowances or other benefits for work based on rates in the collective agreement or local special agreements must be converted into fixed monthly amounts and made pensionable. 

Salary and benefits provided pursuant to Sections 3-6 and 3-6.1 of the Energy Agreement, with the exception of pure bonus agreements, are pensionable. 

§ 3-2 Job codes and designations in this agreement 

Job code

Job title

4033

Manager

4034

Director*

4036

Energy Engineer

4039

Head of Division

4030

Main union representative **

4031

Installation Inspector – DLE

4032

Inspector

4037

Consultant

4038

Technician

4035

Safety manager/HSE manager

Remark:

* The board determines the salary of the company's manager.
** No one should take a pay cut by becoming a chief union representative/chief safety representative.

§ 3-3 Payroll system

At the individual company, the parties must prepare and maintain a salary system that shows general criteria for position/salary assessment.

When determining wages, competence, responsibility, complexity and value creation must be taken into account. Emphasis shall be placed on how the individual employee fulfils these criteria. In the company's assessment, it must be taken into account that younger people normally have a rapid growth in skills.

Wage policy shall generally promote and safeguard gender equality and work to ensure that women and men are treated equally in the assessment of pay and advancement.

There must be a natural connection between the employee's skills development and salary development. The parties evaluate and discuss the further development of the wage system annually.

§ 3-4 Local settlement

The local parties negotiate a local framework on the basis of the company's financial circumstances by 15 November each year.

The local employer must then determine the individual members' salary within the negotiated framework and based on the criteria in the company's payroll system.

Employees on parental leave and other paid leave are covered by local negotiations.

If the local parties agree, the Group's financial situation may be taken as a basis.

The salary adjustments will have an effective date of 1 July.

In addition to jointly agreed wage statistics prepared centrally, the parties are free to present wage statistics from their own organisation in local wage negotiations.

The local parties must hold annual evaluation meetings on the local wage negotiations within two months of the negotiations having been completed.

§ 3-4.1 Pay review

Individual salary determination requires dialogue in the form of a salary discussion between manager and employee. The employer must inform about the possibility of a salary review annually. Such a salary review must take place prior to negotiations on the annual salary adjustment. The manager shall provide the employee with feedback on the assessment made in accordance with the established assessment criteria, the reasons for this and any salary consequences. The employee is given the opportunity to comment on the assessment.

For employees who have re-entered after parental leave, salary developments during the leave period should be a topic in the discussion.

§ 3-4.2

In the event of a change of position or a significant change in the scope of work of the position, including a change in the length of working hours, a salary assessment must be made for the position holder based on a new or changed position within 3 weeks after such a change has taken place.

Changes in salary following such an assessment are granted with retroactive effect.

§ 3-4.3

In order to recruit and retain qualified employees, the parties will, after discussions, be able to change the salary for the individual employee. 

To the extent that the company finds it necessary to correct any imbalances that have arisen in a given year, it shall be able to make additional adjustments at a time other than that specified above, cf. Section 3-4.

After the end of the probationary period, an assessment of the salary placement must be carried out. 

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§ 3-5 Disagreement on local settlement and wage regulation

If an agreement is not reached in the local settlement, either party may bring the matter before the relevant central parties for organisational consideration.

The deadline for appealing disagreements regarding local negotiations on annual salary adjustment is set at 15 November in the year in question.

The Central Parties agree that in such cases, payments cannot be implemented pursuant to Section 3-4 until a solution is in place pursuant to this section.

The central parties may recommend renewed local negotiation or define the final solution to the dispute. The negotiations must be concluded no later than 14 days after the request for organisational processing, unless the parties agree otherwise. One of the central parties may demand that the case be brought before arbitration if organisational proceedings are unsuccessful.

In the event of disagreement regarding salary determination, cf. Section 3-4, 2nd paragraph, the employee representatives may, on behalf of the employee, take up the matter after the employee has applied for a resolution of his or her case.

Section 3-6 Performance-based remuneration

In order to contribute to increased value creation, Samfunnsbedriftene and the organisations will recommend, as well as contribute to, the establishment of performance-based forms of remuneration in the companies.

Section 3-6.1 Development of performance-based forms of remuneration

When, following discussions between the local parties, it has been decided to use productivity- or performance-based bonus schemes, piecework or the like, the scheme shall be agreed between the local parties.

In the event of disagreement about the content of the scheme, this is decided by central organisational processing.

The employee representatives can demand that negotiations on the introduction of performance-based bonus schemes be resumed on the basis of productivity measures and/or the company's finances.

Bonus payments are not part of the annual salary adjustment pursuant to section 3-4 and must be kept separate from this.

Note: See Protocol Supplement No. 1 to this Agreement.

Section 3-7 Remuneration of old-age pensioners

Retirement pensioners born in 1962 or earlier may be engaged on retirement terms, including AFP pensioners who receive AFP early retirement pension in accordance with the pension scheme's ordinary rules, cf. SGS 2020, Contractual Pension, Chapter 1, Section 5, third paragraph. The scheme does not apply to AFP pensioners, cf. SGS 2020, Contractual Pension, Chapter 1, Section 5, 1st and 2nd paragraphs (National Insurance calculated AFP).

The state's rates will apply. In addition to this, inconvenience supplements are paid in accordance with local special agreements.

Persons who are engaged pursuant to this provision shall retain their pension unchanged and shall not be enrolled in the occupational pension scheme.

Section 3-8 Right and duty to negotiate and conduct discussions

The local parties have a mutual obligation to conduct negotiations or discussions in accordance with the provisions of the energy agreement/main agreement. Unless otherwise agreed, the parties shall within 14 days have agreed on a meeting time for the conduct ofnegotiations or discussions.

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§ 4 Proxy service

Every employee is obliged to perform proxy service. 

In the case of a substitute service in a higher paid position, the salary of the higher position is paid after one week of continuous service; Section 3-3, when the person in question takes over the full area of work and responsibility of the position. The provision does not apply to holiday substitutes until after 3 weeks of continuous substitute service. 

If the deputy position does not include all tasks or the entire responsibility assigned to the position, an appropriate remuneration shall be determined after discussions with the employee representatives. 

§ 4-1 Constitution

In the event of a constituent (temporary appointment) in a higher-paid position, the salary that the person in question would have received when appointed to the position is paid from the first day of service.

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§ 5 Working hours

Section 5-1 Definition

Working hours mean the time the employee is at the disposal of the employer according to law and agreement. Active work is counted in its entirety in working hours.

The local parties must define which positions fall outside the working hours provisions in Chapter 10 of the Working Environment Act, cf. Section 10-12 of the Working Environment Act. As a basis for the discussions, the parties shall be based on the independence and managerial nature of the positions, including the possibility of deciding the time for overtime work themselves.

If an employee is exempted from Chapter 10 of the Working Environment Act with reference to Section 10-12, Item 1 or 2, a written explanation must be provided upon request. When hiring new graduates, the reason should be given unsolicited.

If compensation for overtime is incorporated into fixed salary, such compensation shall be defined in terms of amount. If the overtime over the year should prove to exceed the basis on which the remuneration is determined, the employee in question is entitled to an additional supplement for the excess time.

In the event of disagreement, reference is made to Section 6-2 of the Basic Agreement, Part A.

Note: If amendments to the Working Environment Act or its regulations so indicate, the parties reserve the right to amend this provision during the collective agreement period.

§ 5-2 Ordinary working hours

Ordinary working hours for the various working hours categories are based on the definitions in Section 10-4 of the Working Environment Act. 

a) Weekly working hours shall not exceed an average of 37.5 hours for ordinary work, and are normally scheduled in the period 06.00 – 17.00. 

b) Weekly working hours shall not exceed an average of 35.5 hours in the case of round-the-clock shift work. 

c) Weekly working hours shall not exceed an average of 33.6 hours in the case of full-time shift work. 

d) All work outside ordinary working hours that is not ordinary overtime work, shifts/shifts or travel is covered by Section 5-5. This will not have effect for agreements already entered into (entered into before 1.6.2012) that regulate similar matters. Such agreements operate locally until the expiration date. 

§ 5-3 Division of working hours

The division of working hours, including any introduction of flexible working hours, is discussed with the organisation's employee representatives. 

§ 5-4 Days before public holidays

Employees with ordinary daytime working hours end work, without deduction from salary, at 12:00 noon on the Wednesday before Maundy Thursday, Pentecost, Christmas and New Year's Eve.

Ordered service on the mentioned days/evenings is reimbursed in accordance with § 6-1.1. 

This also applies to part-time employees. 

Section 5-5 Staggered working hours

In extraordinary circumstances or when operational considerations make it necessary, the parties may locally agree on staggered working hours. 

A 50% supplement is paid of ordinary hourly wage for the time that falls outside ordinary working hours between 06:00 and 21:00. 100% supplement is paid between 21:00 and 06:00 as well as on Saturdays, Sundays and after ordinary working hours end on days before weekends. 

Notice of shiftedworking hours shall be given as far as possible 3 days in advance, and never less than 1 day.

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§ 5-6 On-call duty outside the workplace

  • On-call duty outside the workplace means an on-call arrangement where the employee is available and can be notified in the manner that the employer deems appropriate.
  • Section 10-4 (3) of the Working Environment Act applies to on-call duty outside the workplace.
  • The conversion factor in established emergency preparedness schemes can be changed by agreement between the local parties.
  • Should the local parties not agree on such an agreement, each of the parties has the right to bring the matter before the Labour Inspection Authority for a decision.
  • After the employer's decision has been communicated to the employee representatives through a discussion meeting, and the employees' representatives notify that they wish to leave the decision on the determination of the conversion factor to the Labour Inspection Authority, any changes in the conversion factor shall not enter into force until the Labour Inspection Authority's decision has been made.
  • When there is an agreed minutes from this discussion meeting, the employees' representatives have a deadline of 3 weeks to bring this before the Labour Inspection Authority.

The need for and scope of on-call arrangements shall be discussed with the employee representatives before on-call arrangements are implemented and a roster is prepared.

The on-call scheme must be incorporated into a plan, cf. Sections 10-3, 10-4 and 10-5 of the Working Environment Act.

§ 5-6.1 Weekly shifts, round-the-clock shifts and weekend shifts

A weekly shift is defined as a shift outside ordinary working hours from the end of working hours on a weekday until the beginning of working hours on the corresponding day of the following week. Round-the-clock duty is defined as a shift from the end of working hours one day to the beginning of working hours the next day. Weekend shift is defined as a shift from the end of working hours the day before the weekend to the beginning of working hours the day after the weekend day.

§ 5-6.2 Guard in the guard room

Duty in the guard room is passive working time; cf. Section 10-4 (2) and (3) of the Working Environment Act. The working hours are considered 1:1.

On-call duty in the on-call room must be incorporated into a work plan and must be based on an agreement between the employer and the employee representatives; cf. Sections 10-3 and 10-5 of the Working Environment Act.

In the event of frequent call-outs for this type of shift, which means that the nature of the shift is no longer in accordance with Section 10-4 (2) and (3) of the Working Environment Act, the use of shifts in the duty room shall be reassessed.

An hour's shift in the guard room must be paid with 1/3 hourly wage.

§ 5-6.3 Regular inspections and planned work

Regular inspections and planned work tasks that are carried out by the duty officer outside normal daytime working hours for practical or other reasons are considered part of ordinary working hours.

§ 5-6.4 Participation on duty

Arrangements should be made for pregnant women to have a work situation that does not entail unnecessary strain.

Employees who need it for health or other weighty welfare reasons should be exempted from duty as far as possible.

Where staffing conditions and qualifications make it possible, the shifts are divided into at least four.

After completed discussions with the employee representatives, the company establishes instructions for the on-call arrangements.

§ 5-6.5 Roster – illness

An employee who is or becomes ill at the time he should have been on stand-by duty according to the work plan is entitled to the free time he would normally have earned in accordance with the work plan.

If an employee is or becomes ill at the time he should normally have had time off according to the work schedule, he will not be entitled to have the days off compensated.

§ 5-6.6 Roster – substitutes

Substitutes who enter the set work schedule are given a shift supplement and free time according to the same rule as the employee he or she replaces.

If a substitute starts duty at short notice, the parties must locally agree on increased compensation.

The local parties define the term short notice in a local special agreement.

§ 5-6.7 Senior guard

Compensation for the duty load as well as compensation for call-outs and active work on duty are set annually at a certain amount per duty day through negotiations with the affected union representatives.

During the negotiations, it must be clarified what the compensation covers in terms of active work on duty. When determining the compensation, the frequency of errors, the nature and complexity of the shift shall be taken into account.

The remuneration is increased by 100% for on-call duty on Sundays and weekends and days before these, Christmas and New Year's Eve and 1 and 17 May. The same applies to shifts from Friday to Saturday.

§ 5-6.8 Special circumstances

Expenses for travel in the event of a call-out on standby duty are reimbursed in accordance with travel regulations and local travel regulations. This also applies to any extra crew. 

§ 5-6.9 Time off in lieu / financial compensation

Shifts should normally be taken off in lieu, preferably after the end of the shift. For required work on the day off in lieu in accordance with the work schedule, the day off in lieu must be replaced and the move compensated with a 50% supplement. Other work on the day off in lieu may be agreed within the limitations set out in Section 10-4 (3) of the Working Environment Act. 

It can be agreed locally whether financial compensation is paid instead of time off in lieu.

§ 5-6.10 Compensation subordinate to on-call duty

Compensation, etc., is negotiated locally. If such an agreement is not entered into, the provisions of Energy Agreement I apply in the corresponding area. 

Section 5-7 Electronic communication

When, at the employer's request, electronic means of communication must be used after the end of working hours, necessary expenses must be covered by the company.

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§ 6 Overtime

Overtime compensation is paid for agreed work in excess of ordinary working hours. 

Overtime supplement is calculated according to 1850 hours per year. In the case of piecework, the percentage supplement is calculated on the ordinary salary. 

The enterprise must make a specific assessment of which employees are not covered by the overtime provisions. The employee representatives may request a written account of how Section 10-12 (1) and (2) of the Working Environment Act is practised in the enterprise.

§ 6-1 Overtime compensation for employees with day and shift work

§ 6-1.1: 133 1/3 %

For overtime work carried out on weekends and public holidays and Easter Eve, as well as after 12:00 on the Wednesday before Maundy Thursday and on Pentecost, Christmas and New Year's Eve.

§ 6-1.2: 100%

For overtime work performed between 21:00 and 06:00. 

For overtime work commenced before 06:00 that lasts until the beginning of working hours. 

For overtime work on Saturdays and Sundays. 

For overtime work performed after the end of ordinary working hours on days before weekends.

§ 6-1.3: 50%

For overtime work performed at a time other than that mentioned above.

§ 6-1.4 Overtime after on-call

Overtime work that does not take place immediately after or before ordinary working hours after or before ordinary working hours is remunerated as if the work lasted for at least 2 hours. The provision does not apply to overtime work that is related to on-call or emergency duty. 

§ 6-2 Protection provisions

According to Section 10-8 of the Working Environment Act, the employee must, as a general rule, have a minimum of 11 hours of continuous rest during a 24-hour period, unless the local parties have agreed otherwise, but a minimum of 8 hours.

Overtime work after 23:00 is taken in lieu hour by hour on the following working day without deduction from salary, unless Section 10-8 of the Working Environment Act gives the right to additional time off. If the employee has worked overtime for 4 or more hours between 23:00 and 06:00, the following working day is taken in lieu without deduction from salary.

The above does not apply to short-term call-outs in connection with on-call duty outside the workplace. The local parties define the term short-term call-out
in a local special agreement.

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§ 7 Holiday

The provisions of this section are in addition to the Holiday Act. 

Section 7-1 Compensation of holiday, cf. Section 9 (1) of the Holiday Act.

Employees who prove by means of a medical certificate that the person in question has been completely incapacitated for work during holiday may request that a corresponding number of working days of holiday be postponed and granted as new holiday later in the holiday year. The claim must be submitted without undue delay after work has resumed. 

§ 7-2 Payment of holiday pay

Holiday pay can be paid in June of the holiday year. This also applies if parts of the holiday are advanced or transferred. 

If the employee makes use of the Act's right to transfer holiday to the following holiday year or to take advance holiday, the basis for holiday pay shall not be changed for that reason. In such cases, corrections must be made in accordance with the actual holiday taken in the accrual year and holiday year. 

§ 7-3 Contractual holiday

§ 7-3.1 Number of holiday days

Employees are entitled to five working days off (cf. Section 5 (4) of the Holiday Act) each calendar year. If the contractual holiday is shared, the employee can only demand to be given as many days off as he or she normally has to work in a week. 

If the authorities decide to implement the remaining part of the fifth holiday week, these days will be deducted from the contractual scheme.

§ 7-3.2 Holiday pay

Holiday pay is calculated in accordance with Section 10 of the Holiday Act and amounts to 12.0% (14.3% for employees over the age of 60). However, holiday pay for employees over the age of 60 is paid in full and is not limited for the part of the holiday pay basis that exceeds 6 times the basic amount pursuant to Section 10 no. 3, second paragraph, of the Holiday Act.

§ 7-3.3 Determination of time for holiday

Determination of the contractual holiday and notification of the determination is made according to the same rules as for the statutory holiday.

§ 7-3.4 Right to holiday time

An employee may claim to be granted holiday time pursuant to this provision regardless of the accrual of holiday pay. 

If operations are wholly or partially suspended in connection with the taking of holiday, all employees affected by the suspension may be ordered to take holiday of the same length regardless of the accrual of holiday pay.

§ 7-3.5 Continuous holiday

The employee may demand that the contractual part of the holiday is granted as a whole within the holiday year; cf. Section 7 (2) of the Holiday Act, so that 1 week of continuous holiday is achieved. 

The central parties encourage the parties locally to arrange the contractual holiday so that the requirement for productivity is met to the greatest extent possible, for example in connection with Ascension Day, Easter, Christmas and New Year's weekend.

§ 7-3.6 Transfer of holiday

By written agreement with the individual, the contractual holiday can be transferred in whole or in part to the next holiday year.

§ 7-3.7 Shift workers

For shift workers, the contractual holiday is adjusted locally, so that after full implementation it amounts to 4 worked shifts. 

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§ 8 Salary during illness, pregnancy, childbirth and adoption

The provisions of this section are in addition to the National Insurance Act and the Working Environment Act. 

§ 8-1 Payment of salary

The company pays salary during illness and parental benefit to employees covered by section 1 for the entire period that the employee is entitled to such benefit under the National Insurance Act. The amount of reimbursement from the National Insurance Scheme for the corresponding period accrues to the company. The right to salary pursuant to this section ceases when the employment relationship ends. Any obligations will be transferred to the National Insurance Scheme from this point on.

§ 8-1.1 Deduction for social security

Deductions must be made from the benefits pursuant to section 8-1 for public security benefits that the employee receives during the period. If social security benefits are granted for a period back when salary during illness or parental benefit has already been paid, the company can demand that such a large part of the social security benefits be transferred that salary during illness and parental benefit for the corresponding period are covered. 

§ 8-2 Illness

§ 8-2.1 The right to sick pay

Employees covered by section 1 are entitled to pay during illness in accordance with section 8-2.2 from the first day of illness if the person in question has taken up the position. 

For employees who continue in their position after the age of 67, the right to full pay during illness is limited by Section 8-51 of the National Insurance Act. After the expiry of the benefit days in section 8-51, the employer pays the difference between salary and pension. The employee documents the amount of the pension.

§ 8-2.2 Scope/amount of salary

The employee is entitled to full pay during illness for 50 weeks, in addition to any employer periods. When the employee has received salary during illness for a total of 50 weeks in the last 3 years, the right to salary during illness ceases. An employee who has been fully fit for work for 26 weeks since he or she last received pay during illness will be given a new right to pay during illness. 

Full salary in this provision means ordinary salary, fixed annual amounts and supplements according to the established plan. 

§ 8-2.3 Notifications/documentation/control

§ 8-2.3.1 Documentation

The right to pay during illness lapses if the absence is not satisfactorily documented. Satisfactory documentation is self-certification during the employer's period. Self-certification can be used for up to 8 calendar days at a time. For absence beyond the employer's period, a medical assessment of work opportunities in the event of illness is required, and after 8 weeks, an extended medical certificate is required. 

§ 8-2.3.2 Notification of recovery

The company may require a certificate of recovery from a doctor before resuming work, when the illness has lasted beyond the self-certification period. 

§ 8-3 Pregnancy and childbirth, etc.

Salary (parental benefit) is calculated in the same way as salary during illness for the entire period of leave (cf. section 8-2).

§ 8-3.1 Work during pregnancy

If the work cannot be performed satisfactorily due to the pregnancy, the employer may discuss with the employee and her union representative that up to 11/2 months of the leave must be taken before the date of birth. The employee's wishes must be given decisive weight. A pregnant employee who, according to law or regulations, has to quit work due to a risky working environment, will have an extended right to pay corresponding to the period from the resignation until the birth. A corresponding right to pay is given to employees who can be reassigned. The layoff shall not affect the weeks to which the woman is entitled as ordinary maternity leave.

§ 8-3.2 Illness during pregnancy

If illness occurs during pregnancy, the employee will receive pay during illness pursuant to Section 8-2 until the time of delivery, if the illness is legitimised by a medical certificate.

§ 8-3.3 New leave of absence

An employee who has been on paid maternity leave must have returned to the position in order to receive pay during the new maternity leave.

§ 8-3.4 Breastfeeding

Employees are given paid time off for up to 2 hours per working day to breastfeed their child.

§ 8-3.5 Care leave for the father

In connection with childbirth, the father is entitled to 2 weeks of care leave with full pay to assist the mother. 

Adoptive parents are entitled to 2 weeks of leave with full pay in connection with a care takeover. This does not apply in the case of stepchild adoption or if the child is over 15 years of age. 

An employee who is a caregiver and has a relationship with the child without being the biological mother or father, and is married to or lives in a marriage-like cohabitation with the child's mother or father, and the cohabitation has been registered in the National Population Register and lasted for at least two years, is entitled to  2 weeks' care leave with full pay.

§ 8-4 Adoption 

In the case of adoption of children under the age of 15, adoptive parents who have been gainfully employed with pensionable income for at least 6 of the last 10 months before the leave commences are entitled to paid leave for the same period as the employee receives adoption benefit pursuant to Chapter 14 of the National Insurance Act. 

Salary is calculated as in section 8-2. 

§ 8-5 Illness of children and childminders

Salary is paid according to the rules on own illness; cf. Section 8-2 and Chapter 9 of the National Insurance Act . 

The absence must be legitimised, cf. section 8-2.3. 

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§ 9 Salary during military service, etc.

The right to salary pursuant to this section applies to employees with a minimum of 1 year of continuous permanent employment in the company during service of military service, civilian service, as well as compulsory service in the Civil Defence, Home Guard or police reserve. 

Employees with permanent employment are paid full salary less remuneration from the military authorities. Part-time employees are paid proportionately.

§ 9-1 Re-entry into the position

The prerequisite for salary payment is that the person in question undertakes to return to service for a period corresponding to paid leave and a maximum of 1 year.

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§ 10 Benefits after death / group life insurance

§ 10-1 Survivors

For employees who are employed in the enterprise, including employees who are on AAP or disability benefit, a lump sum is paid in the event of death to a spouse, partner in accordance with the Act on Registered Partnerships, cohabitants or others who were substantially supported by the employee.

Section 10-2 Determination of amounts

Under 51 years

10.0 g

51

9.5 g

52

9.0G

53

8.5 g

54

8.0 g

55

7.5 g

56

7.0 g

57

6.5 g

58

6.0 g

59

5.5 g

60 years and over

5.0 g

(G = National Insurance basic amount) 

§ 10-3 Preferential treatment of the sum insured

The sum insured is paid in the following order (irrevocably favoured in the order in which they are mentioned):

a) The deceased's spouse (see, however, letter C)

b) Cohabitant (see, however, letter C)

c) Children under 25 years of age. They must have paid at least 40% of the compensation amount, even if it is a spouse or cohabitant entitled to compensation.

d) Other persons who were substantially supported by the deceased. 

§ 10-4 Cohabitant

A cohabitant is a person who has a common residence and children together with the employee, or who can document that the cohabiting relationship has continued for the past 2 years. This does not apply if, at the time the insurance event occurred, there were circumstances that prevented legal marriage from being entered into. A registered partnership is considered to be the same as marriage under this provision pursuant to the Act of 30.04.1993. 

Section 10-5 Payment to the estate of the deceased

If there are no survivors as mentioned above, 1.5 months' salary is paid, but at least 1/2 G to the deceased's estate.

§ 10-6 Insurance

The enterprise is obliged to take out group life insurance to cover the above-mentioned benefits. Before the company chooses an insurance company, the choice of company must be discussed with the employee representatives. 

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§ 11 Compensation in the event of occupational injury/illness

§ 11-1 Occupational injury

In the event of an occupational injury or illness (approved by NAV as an occupational injury) as a result of work in the enterprise, a lump-sum compensation calculated according to the National Insurance Act in accordance with the National Insurance Act is granted at the time of the injury report. 

The compensation including interest pursuant to the Insurance Contracts Act shall nevertheless at least correspond to compensation calculated according to the basic amount at the time of settlement. 

§ 11-2 Damage during travel

Similar compensation paid pursuant to Section 11 Sections 11.1-11.7 is paid when the employee is injured in an accident on direct travel between home and workplace, and on business travel, as well as when the local parties have entered into an agreement on direct attendance, see Section 13-5. 

§ 11-3 All employees/former employees

All employees employed in the enterprise are covered by the scheme. Employees who have been employed by the enterprise are also covered, provided that the injury was established after 01.05.86. 

§ 11-4 Loss in future acquisitions

In the event of an occupational injury or illness that leads to occupational disability of 100%, the compensation amount is set at 15 G. The compensation is reduced proportionately if the occupational disability is lower. 

Section 11-5 Compensation for injury

In the event of permanent medical disability of at least 15%, compensation for injury is also paid in the following way:

15% - <30% medical disability 1G

30 % - 70 % medical disability 2 G

Over 70% medical disability 3 G 

Section 11-6 Occupational injury or illness resulting in death

When an occupational injury or illness results in death, an amount of 15 G is paid to the survivors as defined in Section 10-3. 

§ 11-7 Coordination of §§ 10 and 11

The total compensation to the surviving relatives pursuant to Sections 10 and 11 may not exceed 18 G. 

Section 11-8 Coordination of the rules with the Occupational Injury Insurance Act

In cases where the Occupational Injury Insurance Act entails higher compensation than under the above-mentioned rules at the time of the calculation of compensation, only compensation is paid under the Act. 

In cases where the injured party or survivor will receive a higher total compensation pursuant to section 11 11.1-11.7 than under the Occupational Injury Insurance Act, the difference will be paid in addition to compensation pursuant to the Occupational Injury Insurance Act. 

Section 11-9 Obligation to insure

The enterprise is obliged to take out insurance that covers the benefits pursuant to section 11, cf. also section 10. 

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§ 12 Pension matters

Section 12-0 Definition

Occupational pension scheme (TPO) means the pension scheme in force at any given time that the employer is required to offer to all employees in accordance with this agreement.

Section 12-1 Occupational pension scheme

The employer must have an occupational pension scheme that covers all employees (permanent and temporary).

Section 12-1.1 Public occupational pensions

Companies that have a public occupational pension must comply with the provisions on public occupational pensions including disability and survivors' pensions and contractual pensions, regulated in the SGS 2020 (special agreement) in force at any given time.

Section 12-1.2 Other pension scheme

The employer and local employee parties, who together represent more than 2/3 of the unionised employees, can enter into an agreement to change the company's current pension scheme.

Before such an agreement can be entered into, a process must be carried out to ensure that employee representatives and employees in the company are given thorough information about what a new pension scheme will entail for the individual. The central parties shall be informed that such a process is starting. If the change opens up options for the employees, the various alternatives must be highlighted accordingly.

Appendix A sets out guidelines for the process, alternative pension schemes and other conditions. related to additional benefits and AFP. These guidelines have the same status as a collective agreement. In the event of a dispute regarding the implementation of such a process, one of the parties may not unilaterally adopt, implement or implement a change.

Section 12-1.2.1 Pension accrual in connection with educational leave

In the event of unpaid educational leave that the employer considers relevant to the position, full pension accrual is granted for up to 3 years. The accrual is based on the pension basis in the position from which the employee is on leave.

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§ 13 Travel regulations

The provisions of this section apply unless otherwise agreed locally. 

Section 13-1 Domestic business travel

The provisions in force at any given time for government employees in the "Special agreement on coverage of expenses for domestic travel and board" with regard to transport expenses, night allowances and subsistence allowances, are made applicable to employees in the energy sector for domestic business travel.

If an injury occurs or there is a loss that is caused to the employee in connection with business travel, for example by using their own car, the employer must compensate for any loss in accordance with the principles in the Royal Decree of 27 October 2017. This also applies to loss of bonus and deductible related to the insurance settlement when using a car for work.

§ 13-1.1

In the event of mandatory travel activities that fall outside ordinary working hours, compensation must be negotiated locally. Minutes of the proceedings are drawn up. 

The central parties emphasise the importance of conducting such negotiations. Any breach of the obligation to negotiate is raised with the central parties.  

This does not apply to employees who are exempt from the working hours provisions in the Working Environment Act. 

In the event of disagreement, reference is made to Section 6-2 of the Basic Agreement, Part A. 

§ 13-2 Business travel abroad

The provisions in force at any given time for government employees in the "Special Agreement on Coverage of Expenses for Travel and Board Outside Norway" with regard to transport expenses, night allowance and subsistence allowance, are made applicable to employees in the energy sector for business travel abroad.

If an injury occurs or there is a loss that causes the employee in connection with business travel, e.g. by using their own car, the employer must compensate for any losses in accordance with the principles of the Royal Decree. Res. of 10 June 1983. This also applies to loss of bonus and deductible related to the insurance settlement when using your own car in business.

§ 13-2.1

For employees who are required to travel outside ordinary working hours, an agreement must be entered into before departure between the local parties on remuneration or time off in lieu of this travel time. 

This does not apply to employees who are exempt from the working hours provisions in the Working Environment Act. 

In the event of disagreement, reference is made to Section 6-2 of the Basic Agreement, Part A. 

§ 13-3 Travel and accommodation and assignments in employment relationships that entail night quarters outside one's own home

This provision applies to travel to and from and stays in places that require the employee to spend the night outside the home.

The local parties agree on remuneration and supplements for this type of assignment before the work begins. Allowance shall amount to at least a supplement of 15% of ordinary hourly wages, and subsistence allowance shall be paid according to the state's rates. Overtime supplements are paid in accordance with section 6.

Correspondingly, a supplement of at least 15% is given on ordinary hourly wages for travel, accommodation and assignments that were not initially planned with overnight stays, but which, due to weather conditions, traffic or other factors, nevertheless resulted in overnight stays.

When calculating subsistence, a deduction is made for meals covered by the employer following rule:

Breakfast 10%
Lunch 40%
Dinner 50%

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Section 13-3.1 Notification of travel assignments – facilities

As soon as possible and well in advance of departure, the company must inform the individual about the travel assignment. The union representatives must also be informed as early as possible about the travel assignment and the conditions that apply to the individual assignment. The briefing shall be provided as far as possible by the responsible case officer. The individual employee and employee representatives must be told who is the company's responsible for each assignment. The briefing shall also include safety and environmental services at the facility.

In the event of any discrepancy, this is clarified between the parties at the company.

All employees who are to participate in the assignment are given all necessary written information. A copy of this information is given to the employee representatives.

Section 13-3.2 Travel preparations – facilities

An appointment is made for private travel preparations, which are remunerated with ordinary salary. Time off on return is agreed for each individual assignment and paid with ordinary salary.

§ 13-3.3 Travel to and from facilities

a) At the start-up and completion of the facility, as well as at Christmas, Easter, Pentecost and summer holidays, the travel expenses are paid according to invoice with the place of residence as a starting point. The parties agree on the most appropriate mode of travel based on travel time and costs.

b) Travel time in connection with the start-up and completion of facilities is considered ordinary working hours and is remunerated with ordinary hourly wages or is taken in lieu hour by hour when the travel time falls outside normal working hours in accordance with the work schedule.

c) The same applies when an employee has a start-up/end that deviates from the facility's ordinary start-up/end.

d) Travel on days off must be avoided as far as possible.

e) The company is obliged to take out travel/accident insurance for its employees.

§ 13-3.4 Repatriation during the construction period

a)  In the case of facilities with a duration of more than 2 weeks, a free return journey is granted after 2 weeks of presence at the facility, then a free return journey every 2 weeks. Returning home is adapted to holidays such as Christmas, New Year, Easter, Pentecost and holiday according to the holiday schedule. Where it is natural, several facilities can be merged before free return is granted after 2 weeks.

b)  Travel time pursuant to this section is not counted as working time.

c) Compensation for travel time during the construction period pursuant to section B shall be agreed locally before the journey/facility starts.

§ 13-3.5 Operating time at facilities

a)  In the case of work outside the company, where the employees cannot stay overnight in their home, any agreement on direct attendance in section 13-5 may be used correspondingly, however, so that the place of accommodation is the starting point.

b)  At facilities with large internal distances, an agreement may be made on walking time in connection with meal breaks.

§ 13-3.6 Guidelines for accommodation under the auspices of the company – facilities

Reference is made to Sections 4-1 and 4-4 of the Working Environment Act.

When it is not possible to accommodate at a hotel or guest house, the company must provide accommodation in close proximity to the construction site. The place of accommodation must be located in such a way that the employee is disturbed as little as possible by noise and noise from machines and transport wagons.

Where appropriate, private accommodation can be arranged. Private accommodation in this context means renting a dormitory, apartment or possibly an entire house. Such accommodation must be furnished in accordance with normal standards with access to bathrooms, toilets, radio, TV and telephone, and be in proper condition. Licenses are paid for by the company. The standard of accommodation should be single rooms (bedrooms). Where several employees share a shower and toilet, this must be cleaned as needed.

When accommodating in a barracks/rig, the following must be taken care of when it is practically possible (cf. standard 2000):

  • Single room with shower/WC.
  • The rooms must be furnished according to normal standards and have lockable wardrobes.
  • The rooms are cleaned at least 2 times a week.

At the place of accommodation or in connection with this, there must be a dining room with sufficient space for all employees. Likewise, living rooms large enough for the company's employees to stay there at the same time. The living rooms must be furnished according to normal standard with radio and TV. Employees must have access to a telephone. Licenses are paid for by the company. The facility must have access to washing of clothes for the employees as well as rooms for drying and storing work clothes.

Exceptions to this provision can only be made under special conditions by agreement between the local parties.

When the employees are interested, the company is willing to work with the employees to facilitate the conditions so that they have the opportunity to participate in various forms of leisure activities.

§ 13-4 Travel and accommodation at facilities abroad

The local parties agree on remuneration and supplements for this type of assignment before the work begins. 

§ 13-5 Muster and direct attendance

Musters must take place directly at the company or the permanent meeting place, unless otherwise agreed between the local parties. 

For direct attendance at a non-fixed workplace at the start of ordinary working hours, compensation is agreed between the parties locally. 

The companies must take out an insurance scheme that provides equivalent coverage to the occupational injury insurance at a meeting place other than the company. 

Notes and reservations: Where ferry connections or similar permanent traffic conditions significantly change the travel time for the use of a car, an agreement on a changed muster time may be entered into with the company. 

Documented travel expenses incurred are reimbursed with a maximum of the company as a starting point. 

§ 13-6 Compensation for the use of a private car in the course of work

Where it is necessary to use a car to carry out the work, the employer generally provides a car at the disposal.

In the event of a regular need for the use of a private car for work, the employer and employee can enter into an agreement on compensation. Such an agreement requires that the employee has the private car at his disposal for official use at all times.

The amount of compensation is assessed on the basis of local conditions.

The employee undertakes to take out insurance so that a rental car can be used when their own car is not available. The employer will cover any documented additional premium.

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§ 14 Storage of personal data

The introduction of systems that collect and store data about the individual employee or his or her movements can only take place after discussions between local parties and in accordance with the rules and regulations. Part C of the Basic Agreement § 3-1 and legal provisions, including the GDPR. Minutes of the discussions must be kept. Systems may only be used for the purpose specified during the discussions. It must be clarified who will have access to the collected data, what the data can be used for, how and for how long it will be stored.

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§ 15 Competence development

New technology and modern solutions provide energy companies with new opportunities, but also challenges in terms of expertise. If companies are to succeed in the restructuring that the labour market is facing, both employers and employees must take responsibility for the necessary skills development.

In order to meet the challenges, it is important that the employees, in turn, know and take responsibility for their own level of knowledge and are able to take advantage of the new opportunities offered by technological developments. Employees must be prepared to strengthen their skills. For their part, companies must place great emphasis on systematic training and development of employees in order for the company to be equipped to meet future needs.

Competence development must be based on the company's current and future needs, and the individual employee's needs and abilities for continuing and further education in relation to the position, work situation, job performance and quality improvement in the service.

To the extent that, in the company's view, it is necessary to raise the level of knowledge and strengthen competence in order to perform assigned tasks and functions, costs in connection with this must be covered by the employer. Expenses include salary during leave and legitimised expenses.

Annual discussion meetings are held on the recruitment situation and on future competence needs for different job groups in the enterprise.

Reference is also made to Section 6 of the Basic Agreement, Part C.

§ 16 Gender equality

It is an objective of the parties to:

  • All workers are given equal opportunities for work and for personal and professional development
  • All workers are given equal opportunities in terms of appointment, pay, training and advancement
  • More women are being recruited to senior positions

Managers and union representatives have a special responsibility for the ongoing gender equality work.

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§ 17 Senior policy

The employer discusses senior policy measures with the employee representatives to motivate the employees to stay in work longer. An agreement on such measures is entered into with the individual employee.

Performance appraisals are a good arena for discussing senior policy measures with the individual employee.

§ 18 Accessibility technology

Accessibility technology can challenge the distinction between working hours and leisure time. The local parties will discuss the use of such technology. The discussions will include, among other things:

•    Employer's expectations

•    How the technology is used

When the local parties deem it necessary, a special agreement may be entered into to regulate elements of this section in accordance with Section 4-5 of the HA Part A.

Section 18-2 Coverage of expenses

When, at the employer's request, electronic means of communication must be used after the end of working hours, necessary expenses must be covered by the company.

§ 19 Computer glasses

If the employee has documented the need for computer glasses to perform daily work, including for handling electronic tools with a screen, the employer must reimburse necessary expenses for an eye examination and computer glasses with reasonable and functional frames. The expenses must be documented. 

See also Section 14-4 of the Regulations on Organisation, Management and Participation.

§ 20 Sustainability and climate

The UN's Sustainable Development Goals are also clearly relevant in the energy industry. In this connection, it is recommended that the local parties put this on the agenda as pointed out in the purpose clause of the Basic Agreement.

Climate and environmental measures that promote the Sustainable Development Goals are included as part of the cooperation between the parties under the main agreement. Processes should therefore be established between the parties locally, in order to be able to regularly discuss environmental measures that improve the company's climate impact.

These can be topics such as:

  • Transport arrangements in the company
  • Different work routines
  • Waste disposal
  • Energy consumption
  • Travel to and from work
  • Home office solutions
  • Sustainable sourcing
  • Employee training

§ 21 Duration

This collective agreement is valid until 31 May 2026.

If the Basic Collective Agreement has not been terminated by either party by that time with 3 – three – months' written notice, it is still valid for 1 – one – year at a time with the same mutual notice period. 

Before the end of the 1st year of the agreement, negotiations must begin on any salary changes for the 2nd year of the agreement. The negotiations shall be conducted on the basis of the economic situation at the time of the negotiations, the outlook for the 2nd year of the agreement and price and wage developments in the 1st year of the agreement. If the parties do not agree, the organisation that has made the claim may terminate the collective agreement within 14 days of the conclusion of the negotiations with 14 days' notice (but not until expiry before 1 June 2025).

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Appendix A: Guidelines for employees and management in companies that are considering changing their pension scheme 

This appendix is linked to section 12 Pension schemes of the Energy Agreement, and has the status of a collective agreement. This means that any disagreement about the interpretation of points in this appendix triggers dispute proceedings in accordance with the rules in Section 7-1 and 7-2 of Part A of the Basic Agreement.

  1. Co-determination and representation
  2. Decision on investigation
  3. Notification requirements
  4. Implementation of the assessment process
  5. What does it mean to change your company's pension scheme?
  6. Time frame for the study
  7. Explore more options
  8. Additional services
  9. Special age limits and early retirement
  10.  Securing earned rights
  11. AFP
  12. Group conditions
  13. Economy
  14. Legislation
  15. Agreement

1. Participation and representation

It is the union representatives who represent the organised employees in the companies, and who commit the employees in such a process. 

Union representatives from all employee organisations represented in the company must participate in the process. 

The requirement for agreement with 2/3 of the trade unions applies to a possible final proposal for changes to the pension schemes, not to the process being initiated.

2. Decision on investigation

Before such a decision is made, the company must discuss this with the employee representatives; Section 3-1-1 of Part C of the Basic Agreement.

The decision to have a study carried out on the company's pension scheme and possible alternatives to it is part of the decisions that it is up to the employer to make.

On the other hand, such a decision indicates that there may be important changes in the employees' pension terms, so this is something that the employees' representatives must be consulted on through discussions in accordance with the Pension Act. Section 3-1-1 of Part C of the Basic Agreement. These discussions must be carried out before a decision is made on a study of the company's pension scheme.

The initiation of an investigation into the company's pension scheme is not binding on any of the parties on the question of whether changes should actually be made to the pension scheme.

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3. Notification requirements

The investigation process cannot be started until the central parties have been informed that it has been decided to initiate such a process.

It is important that the central parties are given this information, because it is assumed that the local parties will be able to obtain advice from their respective central levels when they enter into a process with the aim of changing the company's pension scheme.

The central parties are kept informed on an ongoing basis about ongoing investigations, so that they can provide advice to those who request it at any point in the process.

Part of the reason for notifying the central parties that the company is initiating an investigation of its pension scheme is that the central parties want to have an overview of what is happening to the pension schemes. It is the responsibility of each local party to inform its central organisation, and the central parties must ensure that the other parties are also informed.

4. Implementation of the assessment process

The process must be anchored in the company's management team and among the employee representatives. A steering group is established where the union representatives are represented. In the composition of the group, efforts shall be made to equal the parties.

The company must connect with and pay for pension expertise in the form of an independent adviser. The adviser's main task is to investigate alternative pension schemes that may be relevant to the company and to highlight the consequences of the change for each individual employee at the individual level based on realistic calculation assumptions (e.g. the individual's salary development, return on pension capital and expected retirement age).

The company and/or adviser must present all necessary and requested figures.

Union representatives shall have unhindered access to the adviser for investigations and follow-ups on a general and individual basis.

In addition to their own organisation, union representatives may engage other advisers for quality assurance of information. Expenses in this connection are not covered by the employer.

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5. What does it mean to change the company's pension scheme?

In principle, the company is bound by the collective agreement that all employees must be enrolled in the defined-benefit public occupational pension scheme.

The collective agreement now allows the parties in the company to agree that this affiliation for all employees will no longer apply, and that from a given date there will be a change in what will be the company's pension scheme.

There are different models for alternative pension schemes, and they are discussed in more detail later in this document.

Regardless of which model is chosen, the following situations will be the most relevant:

  • The new scheme applies to all new employees after a given date and the old scheme is closed for current employees.
  • The new scheme applies to all new employees after a given date and current employees can choose the old or new scheme for new accrual.
  • The new scheme applies to all new employees after a given date, as well as new accrual for all current employees who have not reached the age of 52; cf. Section 15-6 (3) of the Occupational Pensions Act.
  • The old scheme is discontinued from a given date, and the new scheme then applies to all current employees and new employees.

Closure of a pension scheme means that only current employees can or should be linked to it.

In such cases, there may be individuals who, after a closer investigation, can clearly expect a poorer retirement pension than if they had continued in the old scheme. Several companies have chosen to provide financial compensation to such people.

Those who remain members of the public occupational pension scheme shall be covered by the future changes made to this occupational pension scheme following negotiations between the central collective bargaining parties.

It can be difficult to compare pensions from public occupational pension schemes and the alternative occupational pension schemes, so a thorough assessment should be made of any need for compensation. When calculating compensation, many assumptions must be made about, among other things, expected returns, wage growth and comparable payment periods.

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6. Time frame for the investigation

Experience indicates that a lot of time must be spent in such processes, and six months should be the minimum amount of time a process of investigation, information and discussions with the union representatives should take. In many cases, the parties take over a year before they are ready to make a decision.

It must be emphasised that the issue of changing the company's pension scheme can have a very strong impact on the individual's future living conditions, and that in respect of this, processes must be carried out that ensure knowledge and security. Spending plenty of time on the process contributes to this security.

In this process, it is also important that the employer keeps the employees informed on an ongoing basis.

According to Section 14-1 (a) of the TPO Articles of Association, the agreement on affiliation to the joint scheme and termination of the public occupational pension scheme must take place at least 3 months before the end of a calendar year, i.e. by 1 October. A final decision on termination shall be made no later than 1 December, cf. Chapter 2, Section 2.1.10, fifth paragraph, of the Agreement. It is assumed that the cessation must take place on 31 December.

7. Look at more options

The room for manoeuvre for establishing good pension schemes has become much greater recently, so it is important to investigate several options that may be relevant for the parties in the company.

The most relevant alternatives to public defined benefit pensions are the following:

– Defined-contribution pension

The employer pays annually a selected percentage of the individual's salary as a contribution to the individual's pension. Individuals can choose how the deposits are to be invested. No guarantee is given for the amount paid or return.

The annual pension is determined by the size of the pension capital at the time of payment (the sum of payments and the return achieved) and the number of years the individual chooses for payment (minimum 10 years' payment and minimum to 77 years, cf. Section 7-4, first paragraph, of the Defined-Contribution Pension Act).

The maximum permitted contributions are 7 per cent of salary up to 7.1 G and 25.1 per cent of salary between 7.1 and 12 G, cf. Section 3-2 of the Regulations relating to the Defined-Contribution Pension Act.

The minimum contribution is 2 per cent of salary between 1 and 12 G, cf. Section 4 of the Mandatory Occupational Pensions Act.

The scheme can also be designed so that the employees themselves can contribute to the contributions, e.g. with 2% of the salary, which provides a noticeable strengthening of the pension capital in addition to the employer's contribution. In that case, all employees must pay the same percentage.

The capital associated with the individual employee becomes the person's "property", and the remaining capital in the event of death accrues to the surviving spouse by first ensuring an annual pension of up to 1 G for surviving children until the age of 21, then an annual pension for 10 years for the surviving spouse or cohabitant, cf. Section 7-7 of the Defined-Contribution Pension Act. If the deceased does not have children under the age of 21 or a spouse/cohabitant, the capital accrues to the deceased's estate.

Women will generally have more years without a pension than men.

When drawing a pension, a pension capital certificate is issued and the individual must then bear the costs (costs, including management costs) associated with the pension. The pension is adjusted each year based on returns less these costs.

– Hybrid solution

The hybrid solution is based on contributions being made to the scheme, as in pure defined contribution schemes, but a guarantee is given for the amount paid. It is then the pension provider that decides how the funds are to be managed.

In addition, it can be guaranteed that the pension stock will increase each year with ordinary wage growth or the enterprise's wage growth. Returns in excess of guaranteed regulation are allocated to a regulation fund. The regulation fund can be used to cover guaranteed regulation if the return in one year is not high enough. It is the employer who must be financially responsible for any lack of return in relation to whether there are enough funds to pay for the guaranteed regulation.

The limits for contributions are the same as for the defined contribution pension scheme, but higher contributions must be paid for women than for men, cf. Section 4-2, third paragraph, of the Occupational Pensions Act. As in defined-contribution pension schemes, it is also possible for employees to pay part of the premium in hybrid schemes.

The pension stock (pension capital) that is linked to the individual member will accrue to the pension collective upon death. This capital is then injected into the other members of the insurance collective and helps to increase their pension holdings.

The size of the annual pension will depend on the contribution percentage, the payment period and the expected remaining life expectancy of the individual (this varies depending on the year of birth). Payment of pension from a hybrid scheme may be lifelong or for at least 10 years, minimum to 80 years, cf. Section 4-16 of the Occupational Pensions Act. It is the company that chooses the payment period.

When drawing a pension, the membership of the pension scheme is retained. It can be agreed that pensions will be adjusted by G minus 0.75 per cent.

If such an adjustment is agreed, and the return on the pensioners' funds is not large enough to cover such an adjustment, the employer must pay in the necessary. Alternatively, the pension can be adjusted with a return.

The employer must pay the costs associated with the administration of the pension during the payment period, unlike in the case of a defined contribution pension.

The report should show how the calculated effects of a change in pension scheme on costs and annual pensions are affected by variations in the following calculation assumptions: return, G-growth, wage developments after the transition to a new scheme, inflation and the length of the payment period. Furthermore, any different consequences for women and men when transitioning to a new scheme should be stated in the report.

When comparing retirement pensions from the current and new schemes, the general rule should be based on lifelong pension payments. Expected pension levels should be calculated with the current and new scheme for different withdrawal ages (62, 65, 67 and 70 years). In order to highlight the effects of different withdrawal rules (flexible/non-flexible withdrawals) and different regulatory principles in different schemes, cash/present values of expected payment flows from the schemes being compared can also be calculated. The latter also applies to disability pension, survivor's pension and AFP, cf. sections 8 and 11.

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8. Additional services

Public sector occupational pensions include disability pensions and survivors' pensions (spouse's pension and children's pension).

Disability pensions in alternative schemes are safeguarded by agreeing on the establishment of disability insurance that is as good as possible. The effects of differences in public and private disability pensions, including any lack of paid-up policy accumulation in the private disability pension, must be highlighted in the study work.

With regard to security for survivors, the effects for the individual of removing such coverage, replacing it with group life and/or retaining it either with or without paid-up policy accrual, must be highlighted in the study work. Any effect on cohabitants of changes in security for survivors must also be made visible.

9. Special age limits and early retirement

Special age limits are linked to the public defined benefit pension scheme. Those who currently have a special age limit will lose this opportunity if they are transferred to another pension scheme.

The Defined-Contribution Pension Act and the Occupational Pensions Act also allow for drawing a pension before the age of 62 for certain occupational groups. However, it is not permitted to reduce the pension at the age of 67 in any of the schemes under the current legislation and regulations. A legal basis has been provided in the Occupational Pensions Act to lay down regulations on higher contributions for persons with a special age limit, but this legal basis has not currently been used.

If a changed pension scheme results in reductions in benefits, e.g. from the age of 62, this must be compensated by the company, for example by a secured operating pension scheme.

The effects of a change in the pension scheme for employees with a special age limit must be highlighted in the study work.

Employees with less than 9 years left to the special age limit must be specially protected against reorganisations and company changes that may jeopardise this right.

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10. Securing vested rights

There is a difference between terminating a pension scheme and closing it. In the event of closure, existing employees in the company will often be given a choice between continuing in the "old" arrangement or joining a new one. It must then be ensured that everyone knows what such an election entails. The new scheme will apply to all new employees in any case.

Upon termination of a public occupational pension scheme, accrued rights will always remain in the pension scheme and be subject to regulation. Everyone who has earned money in the public occupational pension scheme will receive a deferred occupational pension that is calculated on the basis of salary at the time of transition to the new scheme, and the ratio between the actual accrual period and the accrual period the person in question could have achieved by remaining in the position until the age limit. However, the possible accrual period cannot be set to shorter than 30 years and longer than 40 years.

It is quite another thing that some of the employees, especially among the younger ones, will see clear opportunities to get a better pension by being linked to the alternative in question. If they are given the opportunity to choose a scheme, it is crucial that they are also given the necessary knowledge to be able to choose sensibly. This will therefore be an important part of what the investigation process on the company's pension scheme will provide.

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11. AFP

The company must take the necessary steps to ensure that employees who are not (longer) on a public occupational pension are covered by private AFP. The social enterprises are now covered by the Joint Scheme for AFP, so that the formalities are in place for this.

Once an agreement has been reached that the company will change its pension scheme, the company must immediately join the Joint Scheme. This must be done so that everyone who is now to be covered by the new pension scheme is at the same time covered by private AFP and can take their membership period for public AFP into the private scheme in full.

As a general rule, employees must be included in the private AFP scheme in their entire length of service for public AFP early retirement pension scheme. An application must therefore be made to the Joint Scheme to ensure that the employees' previous periods of service in the enterprise, while it was affiliated to a public AFP scheme, shall be included in the private AFP scheme.

Alternatively, employees who have reached the age of 55 at the time of transition to a private AFP early retirement pension must be guaranteed an operating pension scheme that provides the same payment as they would have received under a public AFP early retirement pension.

The effects on costs and pensions of a change in the AFP scheme must be included in the report.

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12. Group relations

Pursuant to Section 10-2 of the Insurance Activities Act, it is noted that Section 12-3, Section 12-7 of the Occupational Pensions Act also applies to municipal schemes in group-like circumstances.

In the event of a merger or division of enterprises, it is assumed that Chapters 13 and 14 of the Act relating to Corporate Pensions are applied as far as appropriate and possible. In the event of closure of a defined benefit scheme, including a municipal occupational pension scheme, section 15 of the Occupational Pensions Act applies, with the associated interpretation by Finanstilsynet in a letter dated 09.11.2010 to KLP, in which the Authority states that persons who change jobs between enterprises in the same group and who come from a closed pension scheme may be included in the closed pension scheme with the new enterprise.

13. Finances

Most companies in the energy sector have existed for a long time and have correspondingly long been linked to the public occupational pension scheme. This means that significant financial obligations have been built up for both current and former employees. Due to the continued obligation to make annual adjustments to these pension rights, costs will be incurred for a long time that the company must cover. This affects both premiums and accounting.

A special circumstance that must be taken into account is that in the event of a closure of the current scheme, the company will be part of a new risk and equalisation community. Because no new and younger employees are added to this community, the pension and adjustment premiums for the employees in the closed scheme will be a good deal higher than when they were part of the community that includes the entire local government sector.

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14. Legislation

There are a number of laws that may be of importance if a company is to change its pension scheme. This applies to the following laws, among others:

  • The Act on Mandatory Occupational Pensions
  • The Act on Defined Contribution Pensions in Employment Relationships
  • Occupational Pensions Act
  • The Act on Occupational Pensions
  • Act relating to the Norwegian Public Service Pension Fund
  • Act on the Coordination of Pension and National Insurance Benefits

A number of regulations have also been issued for these acts.

The employer has a particular responsibility to ensure that all legal requirements are met, and it must be expected that the independent adviser who has been commissioned to carry out the process in the company has the necessary knowledge of this.

15. Agreement

Section 12 of the collective agreement allows the company to change its pension scheme if an agreement is reached with union representatives representing at least 2/3 of the unionized employees in the company.

If such an agreement is not reached, the company will not be able to change its pension scheme.

However, if agreement is reached, it must be laid down in a local special agreement what the parties have agreed on.

It is important that it is then recorded how the company's new pension scheme will be, and who will be covered by the various parts of the scheme.

The minutes must also state that the parties have a right to negotiate on the new pension scheme. This means that each of the parties has a right to ask their counterparty for negotiations in order to reach an agreement on adjustments to the new pension scheme. See also section 1 of this document.

The central parties should be consulted when there is a draft of such an agreement, in order to ensure the quality of the content.

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Appendix B: Contractual early retirement pension (AFP) in companies with a pension scheme other than a public occupational pension

In the articles of association

This agreement does not regulate in detail all conditions, rights and obligations related to AFP. This is determined through the scheme's articles of association, which are laid down by the Board of the Joint Scheme for Contractual Pensions (AFP) and approved by the Ministry of Labour pursuant to the AFP Supplementary Pension Act of 2010.

Detailed rules for AFP early retirement pension are laid down in these statutes. Relevant companies must at all times keep up to date with regard to the obligations incumbent on the company The articles of association also contain certain special rules that may mean that the individual employee is not entitled to AFP.

The statutes in force at any given time can be found on www.nyafp.no

II New AFP scheme

A new AFP early retirement pension is granted to employees born in 1944 or later and who are granted AFP early retirement pension with effect from 1 January 2011. The scheme will be established as a joint scheme in the private sector.

A new AFP early retirement pension must be taken out before the age of 70 together with retirement pension from the National Insurance Scheme.

III Conditions for obtaining a new AFP early retirement pension (main points, see also the articles of association)

In order to be eligible for a new AFP early retirement pension, the employee must be and for the last three years prior to this date have been continuously employed and a genuine employee in an enterprise covered by the scheme.

At the time of withdrawal, the employee must also have a pensionable income that, converted to annual income, exceeds the applicable National Insurance basic amount and have had an income above the average basic amount in the previous income year.

Furthermore, an employee born in 1955 or later must have been covered by the scheme for at least 7 of the last 9 years before the age of 62 (the seniority period) in the event of employment in one or more enterprises that were affiliated to the Joint Scheme at the time the seniority was accrued. For employees born in 1944 to 1951, the seniority requirement is 3 of the last 5 years. For employees born in the years 1952 to 1954, both figures are increased by one year for each year they are born after 1951. During the period of seniority, the employment must have been the employee's main occupation and have provided the employee with a pensionable income that is higher than the employee's other income.

See also the Articles of Association (www.nyafp.no) regarding special provisions on full-time equivalents, illness, layoffs, leave, employer's bankruptcy, other income, other pensions received in employment, redundancy pay, ownership interest in the enterprise, ownership interest in other enterprise, etc.

Employees who have a lower retirement age or age limit than 62 years cannot be covered by the scheme.

IV The pension level in the new AFP scheme

AFP is calculated at 0.314 per cent of annual pensionable income up to and including the calendar year in which the employee turned 61 and up to an upper limit of 7.1 G. Pensionable income is determined in the same way as when calculating income pension in the National Insurance Scheme's retirement pension.

AFP early retirement pension is paid as a lifelong supplement to the retirement pension.

AFP early retirement pension is designed neutrally so that it increases at a later date. AFP is not increased further when drawing after 70 years. The same life expectancy adjustment as for retirement pension from the National Insurance Scheme is used when calculating AFP.

Employment income can be combined with AFP early retirement pension and retirement pension from the National Insurance Scheme without any reduction in any of the benefits.

AFP early retirement pension is regulated in the same way as income pension in the new retirement pension in the National Insurance Scheme, both during accrual and payment.

The V AFP scheme is financed in the following way:

The costs of AFP early retirement pension are financed by the enterprises, or parts of the enterprises, that are or have been members of the Joint Scheme, and the state makes a contribution related to the individual pensioner.

The state provides contributions to AFP. Until 31 December 2010, the rules in Act No. 110 of 23 December 1988 apply and from 1 January 2011 the rules in the AFP Supplementary Pension Act.

The compensation supplement for the new AFP early retirement pension is covered in full by the state.

The enterprises pay premiums to the Joint Scheme to cover the part of the expenses that are not covered by the state's contribution. Further provisions on premium payment are laid down in the articles of association for the Joint Scheme for Contractual Early Retirement Pension (AFP) and in the Joint Scheme's board decision.

For the new AFP, the enterprises must pay a premium for employees and others who have received salary and other remuneration that is reported under code 111-A in the Directorate of Taxes' code overview. The premium rate is determined by the board of the Joint Scheme. The premium shall constitute a percentage of the total payments from the enterprise in accordance with the enterprise's reporting under code 111-A. The enterprise shall only pay a premium on the part of the payments to the individual in the previous income year that is between 1 and 7.1 times the average basic amount.

Premiums are paid for up to and including the year in which the member of the scheme turns 61. The premium is paid quarterly.

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Appendix C: Agreement on OU-FUNDING

(Effective January 1, 2013)

§ 1 Purpose

The purpose is to support or implement the following:

  • union representative training/union representative work
  • Employer training

§ 2 Financing

The financing of the OU funds is distributed so that the company's contribution amounts to 2/3 and the employees' payment amounts to 1/3 of the total provision, which amounts to 0.24% of the calculated salary base.

An annual adjustment is made based on the calculated salary base as of 1.12. the previous year.

The amount of NOK from the enterprise per full-time equivalent, as well as the employees' share, is calculated according to the distribution key as set out in the financing principle in the first subsection. For part-time employees, the deduction is made proportionately according to the size of the full-time equivalent.

The effective date for changes in the NOK amounts is 1 January in the year of collection.

All salaried and hourly paid employees, including temporary positions and engagements of more than 6 months' duration, are included in the calculation basis.

§ 3 Collection of premiums

The premium, mentioned in section 2, is paid to Samfunnsbedriftene during the 2nd quarter of each year.

§ 4 Administration

The allocated funds are administered by Samfunnsbedriftene.

An advisory committee is established for the scheme. The committee will have 3 members from the employee organizations, as well as 2 members from Samfunnsbedriftene.

The manager is appointed by Samfunnsbedriftene. Samfunnsbedriftene performs the secretariat's function in the committee.

The committee will monitor the distribution of the funds. The Committee shall be kept informed of the implementation of the agreement at all times.

Up to 1 per thousand of allocated funds are allocated to the activities of advisory committees.

§ 5 Distribution

The funds are distributed with 30% to the employer through Samfunnsbedriftene and 70% to the employee organizations.

The funds are distributed by Samfunnsbedriftene proportionately according to the registered working members of the employee organisations. The advisory committee shall make a statement in advance on the distribution.

The transfer of funds takes place in the following way:

The funds distributed to the trade unions are disposed of by them in accordance with rules they themselves determine in accordance with Section 1. The funds will be transferred as soon as possible after 1 April.

The trade unions report their number of working members as of 1 January by 1 April. The number of members must be confirmed by a state-authorized/registered auditor.

§ 6 Overview of the use of the funds

The trade unions prepare a written report each year in which a broad account is given of how the funds have been used in the previous year. The report must be confirmed by a state-authorized/registered auditor before it is sent to Samfunnsbedriftene by 1 October.

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Appendix D: Employees in temporary employment agencies 

The provisions of this appendix regulate matters in staffing enterprises/temporary employment agencies covered by this agreement:

  1. This agreement can be applied as a collective agreement in staffing companies/temporary employment agencies that have employees who are hired out and who perform work under the scope of this agreement.
  2. Employees must have a written employment contract in accordance with the provisions of the Working Environment Act.
  3. A written assignment agreement must be issued for all assignments containing all relevant information about the nature, content and duration of the assignment.
  4. Termination and dismissal apply in accordance with the provisions of the Working Environment Act.
  5. If an employee is offered employment in the hiring company, he/she may resign after termination when the notice period expires, unless the parties agree otherwise. During the notice period, the employee has the right to continue working in the hiring company if the assignment remains.
  6. When hiring out to a company that is bound by this agreement, the pay and working conditions of the hiring company apply. The provisions on occupational pensions and early retirement early retirement pension are not covered by the principle of equal treatment.
  7. In the case of leasing to a company that is not bound by this agreement, the pay and working conditions agreed in the hiring company apply as long as these do not conflict with the requirement for equal treatment in the Working Environment Act.
  8. The salary obligation runs in accordance with the employee's employment contract. In the event of layoffs or termination of employment, the Working Environment Act and the Basic Agreement apply.

The provisions of this appendix are implemented at the same time as the amendments to the Working Environment Act enter into force; Prp 74L (2011–2012).

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Protocol Entries 

1. Bonus

The owners' return on equity/subordinated loans may be included as a factor in the assessment of any bonus scheme.

For the record:

  1. Editorial committee
    An editorial committee will be appointed to make the necessary adjustments in terms of years, dates, references to legislation, etc.

  2. Economy
    The negotiations locally for 2024 will take place in accordance with the provisions of section 3. See in particular section 3-4, paragraph 1.

  3. Mandatory travel activities that fall outside ordinary working hours
    The central parties are prepared to ensure that the regulation of matters related to mandatory travel activities outside ordinary working hours must be resolved in the long term. Until this happens, reference is made to section 13-1.1.

  4. Multipartite committee
    The parties to Energy Agreements I and II have agreed to join the work of the multipartite committee related to the Business Agreement to assess the need for changes to the agreement to meet the requirements for restructuring and competence needs faced by the various industries. The committee was appointed as part of the 2024 Basic Collective Agreement for the Corporate Agreement.

  5. The parties have agreed to send a joint letter to the Ministry of Labour and Social Inclusion to point out the disadvantages that the current case processing time and payment routines for attendance allowance entail for employees who need to provide care to close relatives.

  6. The parties have agreed to take a closer look at the extent to which the salary change for unorganised workers can be made available to union representatives before the negotiations have been concluded.

  7. The employer bears all costs associated with the mandatory use of a company car/service car.

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