NIS

CHANGES AND IMPROVEMENTS IN

THE N ORWEGIAN LEGISLATION

H EGE A JER PETTERSON

-NSA
CHANGES FROM 2016 & 2017

 Trade area limitations for NIS vessels partly lifted

 Grant scheme for employment of seafarers – changes and

improvements in two steps

 Transfer of undertakings directive – exemption for sea-going

vessels is repealed – not yet entered into force in Norway
TRADING AREA RESTRICTIONS FOR NIS
VESSELS
 NIS act § 4:
Ships registered in the Norwegian International Ship Register are not permitted to carry cargo or
passengers between Norwegian ports or to engage in regular scheduled passenger transport
between Norwegian and foreign ports. For the purpose of this Act, oil and gas installations on the
Norwegian continental shelf are regarded as Norwegian ports.

 NOR vessels:
– Norwegian wages and conditions
– No trading restrictions

 NIS vessels:
– NIS act accepts CBAs agreed with foreign unions with temporary
employment and wages on local level
– Trading area restrictions
CHANGES IN TRADING AREA
 From March 2016 the trading area restrictions for
 Cargo vessels in NIS were softened, provided that:
“Cargo ships where a significant part of the ship's activities takes place
outside of Norwegian waters are permitted to carry cargo between Norwegian
ports when this is carried out:
a) as part of a regular route between a Norwegian and a foreign port; or
b) as carriage of petroleum in bulk from a unit on the Norwegian
continental shelf; or
c) c) occasionally for up to 3 months.”

 contruction vessels is removed

• any vessel engaged in construction activities, subsea operations, pipe-laying
or maintenance of units. ( The same applies to other ships and multipurpose
ships when they carry out construction activities.)

 (Passenger vessels in permanent route between Norwegian and foreign

ports outside the Nordic countries. Not entered into force.)
GRANT SCHEME FOR NIS VESSELS
• New regulations from March 2016, further changes from July 2017
• New legal basis - own act entered into force in June 2017

Construction Passenger
vessels § 15 vessels § 14

NIS

Cargo vessels All other vessels

§ 13A § 13
IMPORTANT DEFINITIONS
• Employees at sea who give
entitlement to grants must satisfy
the following conditions:
a) are entitled to seafarers' tax
allowance pursuant to the Taxation
Act section 6-61;
b) work on board as their main
employment and are part of the
ship's crew;
c) have had their income reported
to the Pension Insurance for
Seamen
• Training position
• Junior Officer: Employed in regular
employment or in addition to regular
crew and with a contract for
training for competence certificate
of Class 1 (D1/M1). Up to 2 junior
officers per ship in the model Grants
for NIS construction vessels do not
have to qualify for a contract for
training for a competence of Class 1.
• Cadet: Employed with contract for
systematic training for competence
certificate class 3 (D3) or
competence certificate class 4 (D4 /
M4).
• Trainee: Employed with training
contract
CONTSTRUCTION VESSELS DOING
CONTRUCTION WORK

Regulation § 15

The company may receive grants equivalent to maximum 35,333

NOK per term based on
- their paid Norwegian advance tax deductions,
- social security contributions and
- employer’s contributions

for each employee entitled to grants (same level as for offshore

vessels in NOR).

There must be at least 12 Norwegians/EEA citizens on each

shift, 4 of these must be training positions.
CARGO VESSELS
• Regulation § 13A
Grants for NIS cargo ships in international trade include

(a) ships exceeding 10 000 GT carrying oil, chemicals, gas or ro-ro cargo
in foreign voyages; and

(b) ships between 3000 and 10 000 GT carrying oil, chemicals, gas or ro-
ro cargo in foreign voyages and which have not performed transport
between European ports, including Norwegian ports, in the term.v

Grants for subsidized employees at sea are granted, cf. section 6,

including for training positions.

• The grant amount is limited to payment of Norwegian advance payment

of tax, social security contributions and employer's contribution per
beneficiary employed (but not limited to cerain amount)
OTHER NIS VESSELS
• Regulation § 13
• Grants for ships in the NIS apply to ships carrying cargo or
passengers, where the carriage is not covered by sections 13A, 14 or
15.

• Grants are awarded for employees at sea who are entitled to grants,
and for training positions.

• The grant amount is limited to 26% of

– paid Norwegian advance tax deductions,
– social security contributions and
– employer's contributions
for each employee entitled to grants.
TRAININGS POSITIONS ON NIS CARGO
VESSELS AND OTHER NIS VESSELS
• Regulation §§ 13 and 13A

• Need to have a specified number of training positions according to

gradual requirements laid down pursuant to the ratio (1:4) between
training positions and other employees entitled to grants, where the
requirement for a second training position becomes applicable when
there are five employees entitled to grants.

• The requirement for training positions is not connected to the ship,

but to the organisation's overall NIS fleet for which grants have not
been requested in the other NIS grant models.

= each training position will give right to tax refund/grants for 4

other positions
CONSTRUCTION VESSELS IN NIS
• Change of practice for ships in hot lay up from January 2017
no requirement for 12 Norwegian seamen (EEA) if the ship is in laid
up.

• Hot lay up is the basis for exemptions from the requirement for
training positions

• Crew requirements on a fleet basis? The Ministry is still thinking..