Union wins another employee rights case against social care provider

Norway

Members of the Fagforbundet trade union working for the Stendi care provider are set to share NOK 60 million (€5.1 million) to cover unpaid holiday pay. The 184 workers are part of the latest legal case against Stendi which has repeatedly tried to circumvent legislation to deny their workers full employment rights. In its judgement the court was highly critical of how the company has continued to circumvent the Occupational Health and Safety Act through the use of staffing agencies to avoid paying full employment costs. The holiday pay covers the period between 2008 and 2018 and the company has to pay this along with NOK 4 million (€340,000) to cover the employees’ court costs. These amounts are in addition to other payments to these workers arising from earlier court cases relating to other elements of pay that were initially denied. One estimate suggests that this and similar cases may have cost Stendi several hundred million kroner. Fagforbundet hopes that this latest judgement will send a clear message to Stendi and other companies that they cannot get away with misclassifying employees in order to cut employment costs.

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