ARTICLE
29 August 2023

Employment Law Practice | Supreme Court Ruling In The Tips Case

The Supreme Court issued its decision in the so-called "tips case", where employees at Hotel Bristol and Oslo Plaza Hotel were granted the right to keep the tips they received from customers without the employer...
Norway Litigation, Mediation & Arbitration

The Supreme Court issued its decision in the so-called "tips case", where employees at Hotel Bristol and Oslo Plaza Hotel were granted the right to keep the tips they received from customers without the employer being able to deduct costs for mandatory employer's contributions and administration.

The case stems from a legislative amendment that came into effect on January 1, 2019, which required employers to report and withhold taxes and pay employer's contributions on tips. In light of the legislative change, both Hotel Bristol and Oslo Plaza Hotel implemented arrangements where a percentage deduction was made from the tips to cover employer's contributions and administration costs.

The judgment contains interesting clarifications about the scope of the employer's right to govern. Hjort's employment law lawyers have extensive experience in advising clients on issues related to the scope of management law. The recent Supreme Court ruling refers to no less than four previous Supreme Court decisions that have been litigated by Hjort lawyers

The Supreme Court's ruling can be read here (Norwegian): https://www.domstol.no/globalassets/upload/hret/avgjorelser/2023/april/hr-2023-728-a.pdf

Hjort has previously written a comment on the Court of Appeal's verdict in the case, which can be read here.

Originally published by 21 April, 2023

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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