The basic agreement is an agreement between the Norwegian Business Association (NHO), which has included all its national and local associations and individual companies, and the Norwegian Confederation of Trade Unions (LO), including all trade unions and associations (divisions). Normal working time should not exceed nine hours per 24 hours and 40 hours per seven days, and work outside these limits will be overtime. If working time is calculated on average, other limits apply (see Labour Environment Act, Chapter 10). Collective agreements set lower limit values, usually 37.5 hours per week, with overtime starting thereafter. This limit is often used in individual agreements in companies that are not covered by collective agreements. In sections 10-6 of the Work Environment Act, overtime is defined as “work on agreed-upon hours.” Overtime must be compensated by at least 40%. Collective and individual agreements generally set the rate at 50% and 100% after 9pm and on weekends. The dismissals are made in writing and apply in accordance with the termination conditions provided by the Labour Environment Act or collective or individual agreements. The staff member must be informed in person or forwarded to his address. The communication informs the worker of his rights when it comes to negotiations, legal proceedings and more. Workers can only be dismissed if the circumstances of the company, employer or worker objectively justify it. The system of collective bargaining developed in the late 19th and early 20th centuries, and the first national collective agreement was concluded in 1907.

A legal framework came into force in 1915 and the first agreement in principle was reached in 1935 between the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, OL) and the employers` organisation NAF. National insurance (and the employer if the parents receive full payment above the level of the amount subject to social security on the basis of a collective or individual contract). The provisions of collective agreements may be extended to anyone working in a sector or geographic area under the general law of application. The decision is taken by the Council of Collective Agreements (Tariffnemnda), an independent governing body. It consists of five members – one president, two neutral members and one member of each of the main employers` and trade union federations.