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Measures against social dumping and employment crime

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The government is introducing stricter regulations in the cleaning and construction industries. The aim is to combat crime in the workplace, which creates problems for exploited workers and serious businesses that are displaced by criminal actors.

The state has enormous purchasing power. It buys public goods and services for around NOK 740 billion annually. We want the public sector to use its purchasing power to place more stringent requirements on customers and public suppliers. Then every tax crown spent on public procurement can contribute to a more serious working life. We support serious players, which we know are the vast majority. Our measures will ensure a level playing field for major players and prevent social dumping, says Industry Minister Jan Christian Vestre.

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New requirements

The Norwegian model will also promote a safe and serious working life and protect the Norwegian model of working life. This winter, the government submitted proposals for consultation on new requirements to address the seriousness of the situation in the cleaning and construction industries.

– We see that there are still serious challenges in some industries related to crime in the workplace. We know, among other things, that there are underpayments in the construction industry and illegal pay and working conditions in the cleaning industry. The rules now being introduced will promote seriousness, especially in these industries, says Minister of Employment and Social Inclusion Marte Mjøs Persen.

“In addition, the government is continuing to work on the possibility of requesting payment through a bank also for benefits other than salary and other remuneration,” says Vestre.

These are the requirements that are introduced for the construction and cleaning industries

  • Changes to the Public Procurement Regulations and the Supply Regulations:  The public contracting authority must determine the terms of the contract regarding the payment of remuneration and other remuneration through a bank or other company authorized to provide a payment service.
  • Changes in the regulations on remuneration and working conditions in public procurement:  the contracting authority must make demands and verify compliance with the provisions on mandatory occupational pensions and HMS cards.
  • Changes in building owner regulations: New language skills and disclosure requirements for the construction industry to ensure health and safety. This also applies to the terms of contracts in this respect.

The regulatory changes come into force on January 1, 2024.

Contract monitoring is absolutely crucial

In a study from 2023, the National Audit Office indicates that the problem in public procurement may be insufficient execution of orders.

For this reason, the Directorate for Administration and Financial Management (DFØ) has developed a best practice for contract monitoring. The guide helps customers to check whether their requirements are met. DFØ publishes the guide at the end of August.

Consider extending the right to terminate

The government is still working on the next one stage of the Norwegian model. It is considering introducing a number of measures in cooperation with those involved in working life.

– We are considering several possible regulatory changes. For example, we are considering extending the right to terminate employment so that the client can terminate contracts that contribute to crime in the workplace to a greater extent. In addition, we are also working to support the client in the execution of contracts by providing better guidance and more digital tools, says Mjøs Persen.

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Source: regjeringen

Also read: Oslo City Council increases social assistance rates

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