Simplified employment 2026 – rules, taxation and common mistakes
What is simplified employment?
Simplified employment is an atypical form of employment regulated by the Act on Simplified Employment. The purpose of the scheme is to allow employers to hire workers for short-term periods quickly and flexibly, with reduced administrative requirements and lower public charges compared to standard employment.
Employment typically begins with a notification to the tax authority (NAV), and in many cases a written employment contract is not mandatory.
Types of simplified employment
Several forms of employment are available within the EFO framework:
Agricultural seasonal work
Used primarily for seasonal work related to agricultural production.
Tourism seasonal work
Designed to meet the seasonal labour needs of the hospitality and tourism sectors.
Occasional work
Applicable to short-term, non-regular employment.
Film industry extras
A specific category for hiring extras in film productions.
Key rules of simplified employment
Companies must comply with several limitations when applying EFO.
Time limits
For occasional work, the following limits apply:
- maximum 5 consecutive days
- maximum 15 days per month
- maximum 90 days per year
The annual limit for seasonal work may differ.
Headcount limit
The number of employees hired simultaneously depends on the employer’s total workforce. This rule aims to prevent EFO from being used to circumvent regular employment.
How much does simplified employment cost?
One of the main advantages of EFO is the favourable public charges.
The employer pays a fixed daily public charge, the amount of which depends on the type of employment.
| Type of employment | Daily public charge |
|---|---|
| Occasional work | fixed daily amount |
| Agricultural seasonal work | lower public charge |
| Film industry extras | higher daily public charge |
The employee’s income may be tax-exempt up to a specified threshold.
What entitlements do EFO employees have?
Although simplified employment is a more flexible scheme, employees are still entitled to certain social security benefits, such as:
- accident-related healthcare services
- acquisition of pension eligibility
- basis for unemployment benefits
However, EFO employees are not entitled to sick pay or paid sick leave.
Common mistakes in simplified employment
Companies often make administrative or legal mistakes when applying EFO. The most frequent issues include:
Late NAV notification
The employee must be reported before starting work.
Exceeding time limits
If employment exceeds statutory limits, the relationship may automatically be reclassified as standard employment.
Incorrect classification
In some cases, a different type of employment relationship would be more appropriate than occasional work.
Practical examples of using EFO
Simplified employment is widely used across various sectors, such as:
- agricultural labour during harvest
- temporary staff for events
- hospitality workers during tourist season
- extras in film productions
Expert insight – Forvis Mazars
Simplified employment can be an effective tool for companies to meet short-term labour needs. However, precise knowledge of the regulations is essential, as administrative mistakes or exceeding statutory limits may create significant tax risks.
Designing the right employment structure and ensuring compliance with tax rules often requires professional support.
Frequently asked questions about simplified employment
How long can someone be employed under EFO?
For occasional work: up to 5 consecutive days, 15 days per month and 90 days per year.
Is a written contract required?
Not always, but using the NAV template contract is recommended.
When must the employee be reported?
Before starting work, via notification to NAV.
Does the employee pay income tax?
Income may be exempt from personal income tax up to the statutory threshold.
Professional support
If your company faces questions related to simplified employment—whether taxation issues, workforce planning or compliance challenges—Forvis Mazars experts can help you design solutions that are both effective and compliant.