{"id":11035,"date":"2020-01-29T14:01:27","date_gmt":"2020-01-29T13:01:27","guid":{"rendered":"https:\/\/melo.no\/?p=11035"},"modified":"2026-06-04T22:27:09","modified_gmt":"2026-06-04T20:27:09","slug":"arbeidsgivers-styringsrett","status":"publish","type":"post","link":"https:\/\/melo.no\/en\/juridisk-innsikt\/arbeidsrett\/arbeidsgivers-styringsrett\/","title":{"rendered":"What can an employer do within the scope of the managerial prerogative?"},"content":{"rendered":"
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This article is of an older date, and its content may therefore be outdated. We recommend seeking specific legal advice before taking any action.<\/em><\/p>\n

An employer\u2019s managerial prerogative is generally defined as the right to direct, allocate, and supervise work, as well as the right to enter into and terminate employment contracts. In this sense, the managerial prerogative is a necessary consequence of the employment contract itself and the relationship of authority and subordination that the contract establishes between employer and employee.<\/p>\n

However, legislation, collective bargaining agreements, and the employment contract impose limits on the decisions that an employer may make pursuant to the managerial prerogative. For this reason, the managerial prerogative is often described as a residual authority.<\/p>\n

General limitations on the managerial prerogative<\/h2>\n

The managerial prerogative may be regarded as a residual authority vested in the employer. As such, it is not unlimited. It is subject to numerous and far-reaching restrictions arising from legislation, collective bargaining agreements, and the employment contract itself.<\/p>\n

Limitations arising from the employment contract<\/h3>\n

One party to a contract cannot unilaterally alter the contents of the agreement without the consent of the other party. This principle applies to all contracts, including employment contracts. Accordingly, the employment contract establishes important limits on the employer\u2019s managerial prerogative.<\/p>\n

Employment relationships, however, often extend over long periods of time. As circumstances change, it may become necessary to adjust the rights and obligations set out in the employment contract to reflect new conditions.<\/p>\n

Within the framework established by the employment contract, management may, by virtue of the managerial prerogative, unilaterally implement changes and adaptations. Changes that fall outside these boundaries require the employee\u2019s consent. If the employee refuses to accept the proposed changes, the employer must either abandon the proposal or terminate the employment relationship, potentially offering continued employment on revised terms (a so-called dismissal with an offer of re-employment on amended conditions, often referred to as a \u201cchange dismissal\u201d). Such a dismissal must also satisfy the requirement of objective justification. A key issue is therefore how far the employer\u2019s managerial prerogative extends when circumstances change. Fundamentally, this is a matter of interpreting and supplementing the employment contract.<\/p>\n

Limitations arising from general requirements of reasonableness<\/h3>\n

Decisions made pursuant to the managerial prerogative must also comply with general standards of reasonableness and objectivity. Decisions must be based on legitimate and relevant grounds.<\/p>\n

This requirement may be viewed as a consequence of the subordinate relationship established by the employment contract, as managerial decisions can have significant consequences for affected employees. To be accepted by the legal system, such decisions must therefore be based on proper and respectable grounds and not on arbitrariness, personal whims, caprice, retaliation, or similar motives on the employer\u2019s part.<\/p>\n

Limitations arising from equal treatment requirements<\/h3>\n

The managerial prerogative is further constrained by extensive requirements of equal treatment.\nThese requirements apply not only during recruitment, hiring, and the conclusion of employment contracts, but throughout the entire employment relationship. For example, equal treatment principles apply to training, further education, and educational leave.<\/p>\n

Equal treatment must also be observed with respect to rights arising after the employment relationship ends, such as preferential rights to re-employment, pension benefits, and similar entitlements.<\/p>\n

In many respects, these equal treatment requirements can be regarded as an integral part of the broader requirement of objective and reasonable conduct.<\/p>\n

Equal treatment obligations are partly codified in Chapter 13 of the Norwegian Working Environment Act. These provisions prohibit discrimination based on political views, membership in trade unions, age, part-time status, or temporary employment status.<\/p>\n

These rules must also be viewed in conjunction with the Equality and Anti-Discrimination Act, which prohibits discrimination based on gender, ethnicity, national origin, ancestry, skin colour, language, religion, belief, disability, or sexual orientation.<\/p>\n

Although the statutory provisions are formulated through specific examples, they are not exhaustive. Because they must be interpreted in light of their purpose, situations closely analogous to those expressly covered should also be considered prohibited. The provisions must therefore be interpreted broadly rather than restrictively. For example, it is unlikely that an employer may lawfully discriminate solely on the basis of marital status. Accordingly, equal treatment requirements must be supplemented by the general standard of reasonableness described above.<\/p>\n

Limitations arising from employees\u2019 participation rights<\/h3>\n

The democratization of working life has resulted in employees being represented in corporate decision-making bodies, councils, and committees. Through partially self-managed teams and other modern forms of work organization, employees have also gained influence over parts of the decision-making process.<\/p>\n

These forms of participation are difficult to reconcile with traditional concepts of management. Whereas management was previously characterized by hierarchical command structures, modern working life increasingly presupposes a cooperative relationship between management and employees.<\/p>\n

Through representation in corporate bodies and new forms of work organization, employees have gained greater influence over company decisions. Current legislation leaves limited room for decisions to be made unilaterally by an employer or corporate body without employee involvement.<\/p>\n

What the managerial prerogative allows<\/h2>\n

Creating positions<\/h3>\n

By virtue of the managerial prerogative, an employer may establish positions within the company. Unless restricted by legislation, collective agreements, or other binding arrangements, management is generally free to determine which positions should be created and filled. Similarly, the employer may define the duties and purpose of a position.<\/p>\n

Hiring employees<\/h3>\n

The employer may also decide who should be appointed to a position. However, the managerial prerogative is subject to several important limitations in this regard:<\/p>\n