The former government proposed in a bill to the Parliament, presented in spring 2005 major amendments to the Worker Protection and Working Environment Act of 1977 with the intention of liberalizing the present regulations. The present government reversed the majority of the proposed amendments in the present Act of 2005.
1. Generally, there is a freedom of contract between employer and employee. Limitations to this principle are a consequence of collective agreements between trade unions and employers or federations of employers, and also by law requiring that a written agreement is made and which at least shall regulate the following:

- The identity of the parties
- Work place
- Description of the work or the employee’s title, position or work category
- Starting date
- Expected duration if temporary employment
- Trial period clauses, if any
- Vacation and vacation allowance
- Period of notice
- Salary at starting date, plus fringe benefits, way of payment and date of payment
- Length of and the actual daily and weekly hours
- Length of breakes in the working hours
- Agreement concerning special working hours
- Information concerning collective agreements regulating the regulation between employer and employee, if any

2. The Act of 2005 generally states that employees may not be dismissed unless this is objectively justified on the basis of circumstances related to the undertaking, the employer or the employee.

Traditionally, Norwegian courts have accepted the judgement of the management / board of directors when the courts find that the management’s/board’s judgement has been based on objective business principles.

Minimum period of notices required by law vary between one and six months, depending upon the time of the employment and the age of the employee. “Golden parachute” agreements are quite common, but probably not as generous as in many other countries.

3. Flexibility as to re-location of employees is mainly regulated by the individual employment contract, but also the general principle stating that it is the prerogative of the employer to distribute, lead and control the working operations within the frames of the employment agreement.