NAV interpreted the law incorrectly when calculating daily allowance

In a matter concerning the interpretation of section 4-11 of the National Insurance Act - the provision on the calculation of the basis for unemployment benefits - the Supreme Court found that the provision on limiting the basis to six times the basic amount of section 4-11 subsection 4 of the National Insurance Act only applies after the calculation of an average of the actual income in the previous three calendar years or twelve-month periods. The Court also referenced the context and systematics of the provision, and to the legislative history and certain statements in the preparatory works. This interpretation of the provision was consistent with established practice until 2019. A legally binding norm was then established, which could only be changed by formal law. As for the processing of severance pay when calculating the daily allowance base, the Supreme Court found that the time of payment must be decisive, so that the amount should not be distributed beyond the period for which it is intended to cover loss of income. The Court referenced the legislative history and statements in preparatory works, and the importance of simple and practicable rules. The implementation of the rules did not involve any interference with the rights under the ECHR P1-1. For one of the three parties in the case, the order of the National Insurance Appeals Council was ruled invalid. The Supreme Court found in favour of the other two.

Read the judgment (Norwegian only)

Area of law: Welfare law. Section 4-11 of the National Insurance Act.

Key paragraphs: 66, 69−70, 93, 102, 106−107

Justices: Webster, Bull, Bergsjø, Høgetveit Berg, Steinsvik