February 27, 2026

"A clear message that wage theft is a crime"

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February 27, 2026

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"We are sending a clear message that wage theft is a crime, not just a violation of the rules," said Lars Christian Fjeldstad in a speech at Efling parliament today. Such a message is at the heart of Norwegian legislation, where wage theft is defined as a criminal economic crime and can be punishable by up to six years in prison. Fjeldstad, a lawyer for the Norwegian Confederation of Trade Unions (LO), gave a detailed account of the Norwegian experience with the legislation.


In his presentation, Fjeldstad outlined how Norway became the first European country to introduce specific criminal provisions against wage theft, after a bill to that effect was passed in 2021 and came into force at the beginning of 2022. He pointed out that the beginning could be traced to a proposal from Fagforbundet, Norway's largest trade union, which enjoyed the support of both LO and the Norwegian Labour Party.


Up to six years in prison for wage theft

Fjeldstad explained that under the law, employers who knowingly withhold wages, vacation or other payments can face up to two years in prison, but up to six years if the violations are serious.


"The law aims, among other things, to prevent those who engage in wage theft from gaining a competitive advantage, but also, and at the same time, to protect workers who are often in a vulnerable position," said Fjeldstad.


He noted that the provision covers both statutory and contractual rights, including overtime, vacation and other payments.


Intention is key

In his speech, Fjeldstad emphasized that the law is aimed at intentional violations. "We are not punishing honest mistakes," he said, explaining that genuine misunderstandings or disagreements over the interpretation of rules generally fall outside the scope of punishment.


"But when an employer knows that they are engaging in wage theft, for profit, then it is criminal conduct," he added.


Fjeldstad reviewed several examples from Norwegian courts. Among them, he mentioned a case in which an employer was convicted of underpaying an employee millions of kronor, as well as the so-called Fibertec case in which a managing director received an unconditional prison sentence for large-scale wage theft.


He also drew particular attention to a recent appeals ruling from January 2026, in which the systematic underpayment of 13 employees was considered a single, continuous crime. “The court rejected the idea that financial hardship could justify such conduct,” Fjeldstad said.


Fierce opposition in Iceland prevents legislation

In the discussion after the lecture, Sólveig Anna Jónsdóttir, chairwoman Efling , pointed out that the amounts mentioned by Fjeldstad were not dissimilar to those Efling saw in its cases in Iceland. The difference, however, was that the criminal sanctions in Iceland were much weaker.


Fjeldstad also said that in Norway there had been a broad consensus on the need for such legislation and that it had not met with significant political opposition. Sólveig Anna said this was in stark contrast to the situation in Iceland, where attempts to enact similar laws had been met with fierce opposition.


She said she found it incomprehensible given that she was confident that support for such legislation would be extremely strong among the public. "The pressure from employers on politicians is such that it almost resembles organized crime," said Sólveig Anna.


It is necessary to enact similar laws in Iceland

Wage theft has been a topic of discussion in the Icelandic labor market, not least in connection with the status of foreign workers and dumping in certain sectors.


From Fjeldstad's lecture and the discussions that followed, it can be concluded that clear and unequivocal legislation, defining wage theft as a punishable economic crime, would be a powerful way to protect workers' rights and promote healthier competition.



It is clear that such legislation is necessary in Iceland, as it would strengthen the position of workers and set clear boundaries to ensure that wage theft will not be tolerated. Efling calls on the government to act immediately and follow the example of our neighbors in Norway. 

Sólveig Anna Jónsdóttir, chairwoman of Efling , Lars Christian Fjeldstad, LO logician, and Finnbjörn Hermannsson, president of ASÍ.

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Guests, both foreign and domestic, addressed the session and contributed to the discussion, and their presentations attracted attention and sparked further discussion among the attendees. The accompanying photos from the session provide an insight into the atmosphere, from the work on issues and professional groups to the guest addresses.
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