2015/39 Care and support for residents of a specialised housing complex is asset-intensive (NO)
The City of Oslo terminated a service agreement with a private provider of monitoring and caring services to residents of a municipal social housing facility, and started to provide the services themselves.
Five of the employees who were dismissed due to the termination, instituted proceedings against the City of Oslo claiming the arrangement constitute a transfer of undertaking pursuant to the Norwegian Working Environment Act (WEA) chapter 16 (which implements Directive 2001/23/EC in Norway).
The main questions were whether the monitoring services constituted an economic entity before the transfer, and if so, if the entity had retained its identity after the transfer to the City of Oslo. The Norwegian Supreme Court concluded that the arrangement did constitute a transfer of the undertaking.
Høyesteret (Supreme Court), 2015-06-17