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Norway – Adecco appeals court verdict

11 December 2013

In the latest twist in the ongoing court case between Adecco Helse (Health) Norway and the municipality of Klæbu in Sør-Trøndelag, Adecco has decided to appeal against the High Court’s judgement that the recruitment firm must pay NOK 12.9 million (€1.6 million) in compensation for breach of contract, reports adressa.no.

The staffing provider entered into a five-year contract to supply staff to a nursing home in Klæbu, which was cancelled after 10 months. The municipality originally sought compensation of NOK 33 million (€4.1 million), relating to the costs of taking over the running of the nursing home, but had been pleased with the High Court’s verdict.

Klæbu town Councillor, Olaf Løberg commented: “We regret that we must spend more time on this issue. The hearing lasted two-and-a-half weeks. We think the court carried out a very thorough, sober, and accurate assessment.”

Mr Løberg warned that the town would raise the issue of the compensation amount. He suggested that it would be a little bit below the original compensation amount of NOK 33 million.

Adecco is launching its appeal on the basis that it disagrees with several aspects of the judgement and has produced new items relevant to the case. Adecco further claims that the cancellation of the contract by Klæbu municipality was an over-reaction to the so-called ‘Adecco Scandal’, whereby the recruitment firm was investigated by the Labour Inspectorate and the Norwegian Board of Health and found to be in serious breach of contract at other nursing homes in Norway.

Adecco believes that the reasons for terminating the contract were insufficient and the breaches uncovered at Klæbu were not as serious as the other cases, for which Adecco has already agreed settlement amounts. 

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