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Severance agreement when downsizing

The question · Asked in October 2026

“My company is downsizing. Explain to me what is a severance agreement from legal perspective, what will happen if I don't sign it?”

Summary of the answer

A severance agreement is an ordinary contract outside the dismissal rules, set aside only if unreasonable (avtaleloven § 36, HR-2020-2202-A). Declining keeps the job; a dismissal must then meet arbeidsmiljøloven §§ 15-4 and 15-7.

A quick finding, not legal advice. Ask a legal expert to confirm it, and ask Lovkart again for today’s law.

Sources the answer used

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