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posted 4 weeks ago
When an employee is given notice of termination by the employer, the employee is entitled to free or low-cost legal assistance under the Legal Aid Act, provided the economic criteria are met. Below we explain the employee’s right to free legal aid in connection with termination, and what our lawyers can assist with.
Read this article on verito.no
Anyone who loses their job because the employer has given notice of termination or summary dismissal is entitled to free legal aid — if the economic criteria set by the authorities are met. This means the employee, free of charge or for a small co-payment, can have a lawyer assess the termination or dismissal and bring claims if it appears unfair or invalid. The lawyer then seeks payment for the work via the County Governor (Statsforvalteren). You can read more about the scope of assistance, the eligibility criteria, etc. below. We help you check whether you qualify as part of our assistance — so get in touch if you would like one of our lawyers to review this with you.
Basic condition for free legal aid: termination or dismissal
Section 11, second paragraph (litera 5) of the Legal Aid Act provides that free legal advice (fritt rettsråd) may be granted to:
“…an employee in a case under the Working Environment Act concerning whether an employment relationship continues to exist or concerning compensation in connection with the termination of an employment relationship…”
From the wording, legal aid may be granted in cases concerning whether an employment relationship exists. In practice, this will cover questions of whether a termination or summary dismissal is considered justified and valid.
Free legal aid can be granted to employees covered by the Working Environment Act or the State Employees Act. Self-employed persons are excluded.
Free legal aid may be granted regardless of the reason the termination was given. That includes termination for reasons related to the employee, whatever reason is cited. This also includes terminations due to illness, age, pregnancy/leave, military service, and termination during a probationary period. Terminations due to the undertaking’s or the employer’s circumstances are also covered. Likewise, the employee has a right to free legal aid where summary dismissal has been used instead of termination.
It is not a requirement that a formal or written termination/dismissal exists in order to be granted free legal aid. According to the 2017 Circular on Legal Aid, it is sufficient that the employee has lost their job. However, the applicant or the assisting lawyer must document that there has in fact been an employment relationship.
Free legal aid in cases of “change termination” (endringsoppsigelse)
The 2017 Circular on Legal Aid further states that free legal aid may be granted for change termination(endringsoppsigelse). In short, this covers situations where significant changes are made to the employment relationship, and where the change is equated with a regular termination. Typically, this concerns disputes about whether changes to duties, or pay and employment terms, fall within the employer’s managerial prerogative, or whether it is in reality a formal termination.
Disputes about the end of a fixed-term employment or hire-in relationship are also covered by the provision. The real question is whether the fixed-term/hire-in was unlawful, or whether the employee has been employed on a fixed-term basis long enough to have the right to permanent employment. In other words, these are disputes between employer and employee concerning the right to permanent employment.
If the case concerns suspension or layoff, the employment relationship still exists during the period of suspension/layoff. Such case types are therefore not covered by the legal aid scheme.
Introduction
The latest amendments to the Legal Aid Act entered into force on 15 October 2025. Below, we review these in detail, with a particular focus on changes to the economic eligibility for legal aid and the co-payment scheme. If you wish to read about the old rules, these are covered further down in this article.
The County Governor states on its webpages that the changes now made to the Legal Aid Act mean that many more people will be able to receive publicly funded legal aid. At the same time, it is important to be aware that the new co-payment system means the co-payment you must pay for free legal aid can vary significantly depending on your overall payment capacity.
Which cases are affected by the changes?
It is important to understand that the changes do not affect every case. Whether the changes apply in your case depends on when the case was commenced.
According to the new Legal Aid Regulation (2025) (rettshjelpsforskriften) § 23, first sentence, the rules on the new model for means-testing — i.e., the amendments in the new Legal Aid Act — only apply to “[…] cases where the assignment in the relevant free legal advice or litigation case was commenced after the rules entered into force.” The changes thus affect you only if your case was commenced after 15 October 2025. The case is considered commenced when an agreement for assistance is concluded, for example when a letter of engagement is sent and accepted.
If your case was commenced before 15 October 2025, the Legal Aid Act as it read before the amendments and the old (2005) regulation apply, cf. the 2025 Regulation § 23, second sentence. See further down for the old rules.
Overview
The new Legal Aid Act introduces several changes to the economic criteria for free legal aid. The Act no longer uses fixed income and asset thresholds in means-tested cases, but instead uses a more dynamic calculation of the applicant’s payment capacity. Details follow below.
Who is entitled to free legal aid?
A key question under the amendments is which applicants now qualify for free legal aid. From both §§ 11 and 16 of the Legal Aid Act it follows that free legal aid may be granted to applicants who “have a payment capacity that does not exceed five times the National Insurance basic amount (G).” The basic amount (G) is currently NOK 130,160. If the applicant’s payment capacity exceeds 5 G (NOK 650,800), they are not entitled to free legal aid.
No dispensation
Under the old Legal Aid Act, § 11 fourth paragraph allowed free legal advice to be granted even if the applicant’s income/assets exceeded the set thresholds, where the legal costs were significant in relation to the applicant’s financial situation. This dispensation option is not continued in the new Legal Aid Act.
The legislator’s justification for discontinuing the dispensation option appears in the preparatory works to the new Act, Prop. 124 L (2022–2023) p. 32:
“Introducing a new economic model will […] significantly reduce the need to apply for dispensation from the economic condition because more people are included in the scheme. The Ministry therefore proposes, in line with the majority of the committee, that the possibility of applying for dispensation from the economic conditions is not continued.”
Since the dispensation option has been removed, the condition that the applicant’s payment capacity does not exceed 5 Gmust be regarded as almost absolute. A narrow exception is found in § 18 of the Legal Aid Act, which concerns the Supreme Court’s power to grant free litigation even if payment capacity exceeds 5 G. The clear main rule remains: if payment capacity exceeds 5 G, one is not entitled to free legal aid.
Legal Aid Regulation § 1 governs how an applicant’s payment capacity is determined:
“The applicant’s payment capacity is the applicant’s gross income plus half of net assets, divided by the National Insurance basic amount. If payment capacity is negative, it shall be set to zero.”
Thus, payment capacity is calculated by dividing the sum of gross income (GI) and half of net assets (NA × 0.5) by 1 G. Two examples:
Example 1: Payment capacity not exceeding 5 G
Peder Ås has GI NOK 500,000 and NA NOK 100,000. Calculation:
(500,000 + (100,000 × 0.5)) / 130,160 = 4.23.
Since Peder’s payment capacity (4.23) does not exceed 5, he may qualify.
Example 2: Payment capacity exceeding 5 G
Lars Holm has GI NOK 400,000 and NA NOK 1,000,000. Calculation:
(400,000 + (1,000,000 × 0.5)) / 130,160 = 6.92.
Since Lars’ payment capacity (6.92) exceeds 5, he does not qualify.
What counts as gross income?
Gross income includes the total income that forms part of ordinary taxable income under the Tax Act (chapters 5 and 12), cf. Regulation § 3. In other words, all taxable income in and outside employment, before deductions, must be included. Income that is not taxed, for example social assistance or child support benefits, is excluded from gross income.
What counts as net assets?
Net assets comprise total assets minus total debt, with exceptions for certain asset types, cf. Regulation § 4. The exceptions (exhaustively listed in § 4(2)) are:
a) The value of, and debt linked to, the primary residence and operational assets owned by the applicant. If the net market value of the primary residence/operational assets exceeds the limit in Tax Act § 4-10(2) third sentence, the value and debt are nevertheless included.
b) BSU savings.
c) Funds from a marital property settlement or cohabitants’ settlement that will within a reasonable time be reinvested in a new home.
d) Aids necessary for the applicant’s ordinary life functions.
e) Funds from personal injury compensation intended to cover loss of future earnings or future expenses.
If net assets are negative, they are set to zero in the calculation, cf. § 4(3).
The calculation differs if the applicant is married or cohabiting with shared finances, cf. Regulation § 2:
“For an applicant who is married or lives with others with shared finances, gross incomes and net assets shall be added together when payment capacity is determined under § 1. The applicant’s payment capacity shall be 0.6 times the combined payment capacity.”
Example 3: Married applicant
Again take Peder Ås (GI 500,000; NA 100,000) and his spouse Kari Ås (GI 400,000; NA 200,000). We first sum their GI and 0.5×NA, then multiply by 0.6:
((500,000 + (100,000×0.5)) + (400,000 + (200,000×0.5))) × 0.6 / 130,160 = 4.84.
Since 4.84 ≤ 5, Peder may qualify.
Deduction for childcare responsibility
Another significant change is that a deduction shall be made for responsibility for children when calculating payment capacity, cf. Legal Aid Act §§ 11(3) and 16(3) (identical provisions):
“(3) In calculating payment capacity under the second paragraph, gross income, net assets and deduction for support of children shall be included. Spouses and others living with shared finances shall be assessed together.”
The requirements for the deduction are detailed in the 2025 Circular on Legal Aid (SRF-2025-1). The applicant must have responsibility for a child under 18. No documentation of actual child-related expenses is required, but the applicant must have parental status and therefore responsibility; no deduction is granted merely for cohabiting with someone who has such responsibility.
How the deduction is calculated is set out in Regulation § 6(1)–(2):
0.5 G for one child
0.65 G for two children
0.75 G for three or more children
For married/cohabiting applicants with shared finances, a joint deduction is applied after setting payment capacity under § 2.
Example 4: Single applicant with one child
Using Lars from Example 2: GI 400,000; NA 1,000,000; one child.
((400,000 + (1,000,000×0.5)) − (130,160×0.5)) / 130,160 = 6.42.
He remains above 5, but the deduction reduces his capacity from 6.92 to 6.42.
Example 5: Married applicant with three children
Using Peder/Kari from Example 3; deduction is 0.75 G:
(((550,000 + 500,000) × 0.6) − (130,160 × 0.75)) / 130,160 = 4.09.
With three children, Peder’s capacity is reduced by 0.75 (from 4.84 to 4.09).
Introduction
Previously, recipients of free legal advice paid a fixed base co-payment (public fee rate), and in litigation 25% up to a capped amount. For assignments commenced after 15 October 2025, the co-payment is calculated differently. Legal Aid Act § 9(1), fourth sentence:
“The co-payment is determined based on the applicant’s payment capacity under §§ 11(2)–(3) and 16(2)–(3).”
There is no longer a fixed upper cap. For cases affected by the amendments, the co-payment is set based on payment capacity. Persons with payment capacity not exceeding 1 G (NOK 130,160) pay no co-payment, cf. § 9(1), fifth sentence.
How much must I pay?
Regulation § 7(1) provides:
“The co-payment to be paid by the recipient in a means-tested case shall be between 1% and 99% of the costs of the lawyer’s fees and necessary travel expenses/time away. The percentage is set based on the applicant’s payment capacity at the time of application […]”
Thus, the closer the applicant is to the upper limit (5 G), the higher the co-payment. The payment capacity at the time of application is decisive.
How is the co-payment calculated?
Regulation § 7 sets out the mathematical formula:
Co-payment % = 100 × [0.01 + 0.0125 × (payment capacity − 1)² + 0.0125 × (payment capacity − 1)³]
Assuming legal costs of NOK 100,000:
Example 6: Payment capacity 4.8 → 87.64%, i.e., NOK 87,640
Example 7: Payment capacity 3.5 → 28.34%, i.e., NOK 28,340
Example 8: Payment capacity 2.0 → 3.5%, i.e., NOK 3,500
Because the formula is non-linear, the co-payment rises steeply with payment capacity. Even where the applicant otherwise qualifies, costs can be substantial.
Economic condition for free legal aid (cases commenced before 15 October 2025)Free legal aid in termination and dismissal cases is means-tested. The authorities set income and asset thresholds; those below the thresholds are entitled to legal aid. Those above have no automatic right but may still apply and be granted aid.
Gross income
The basis is gross income — all taxable income in and outside employment before deductions: salary, benefits, benefits in kind, pensions, interest income, business income, imputed income from property, and various contributions (e.g., child support). Non-taxable income is excluded. For the self-employed, business profit is included.
Assets
When assessing assets, value in a primary residence and operational business assets is generally disregarded, as are funds locked in BSU accounts. The County Governor makes a concrete assessment; substantial wealth in property/business assets can still exceed the threshold. Owning a home and exceeding the asset threshold does not automatically disqualify you — in practice, most still obtained legal aid.
Income and asset thresholds (old rules)
Thresholds are set in the Legal Aid Regulation and may be changed politically. As of 2025 (before 15 October 2025)the income threshold was NOK 350,000 for single persons and NOK 540,000 for spouses/cohabitants with shared finances. The asset threshold (both singles and others) was NOK 150,000. For spouses/cohabitants, combined income and assets apply.
How to apply for free legal aid
Lawyers can self-grant and apply on behalf of clients. Employees who believe they qualify can also apply themselves. The scheme has two tracks: free legal advice (outside the courts) and free litigation (before the courts).
We handle the application process for our clients where relevant. To process the application, the client must complete and submit a self-declaration to the lawyer. A link to the “self-declaration for free legal aid” form is available, and you may also apply directly to the County Governor.
If legal aid is granted, you will receive a confirmation which you can present to the lawyer you wish to engage.
How free legal aid works
Under the scheme, the authorities (via the County Governor) pay the lawyer to assist the employee. The employee usually pays a co-payment, but for low incomes no co-payment is required. The County Governor does not cover an unlimited number of hours per case. Assistance is covered within set hourly frames. There is a distinction between free legal advice (typically up to 6 hours) and free litigation (no fixed cap, but the courts review time spent upon settlement of the case).
Co-payment under the old scheme (cases before 15 October 2025)
For free legal advice, the co-payment equalled the public fee rate. In 2024 this was NOK 1,215 (incl. VAT). If gross income was below NOK 100,000, no co-payment was charged.
For free litigation, the co-payment was 25% of expenses, capped at 8× the public fee rate — NOK 9,720 in 2024 — the maximum the employee would pay to have the case heard.
If you wish to learn more about the legal aid scheme in Norway, we recommend the County Governor’s webpages.
The Legal Aid Act is subsidiary
Legal aid is subsidiary, meaning you are only entitled to legal aid to the extent the assistance cannot be paid or reimbursed in another way. This follows, among others, from § 5 of the Legal Aid Act. In termination/dismissal cases there are mainly two alternative funding sources: (1) insurance that covers disputes with the employer (ordinary home/villa insurance does not cover such disputes), and (2) recovery of costs as part of the claim against the employer.
Compensation for legal costs
If the case leads to compensation because the employer acted unlawfully, the employee is entitled to compensation under Working Environment Act § 15-12. In addition to non-economic damages, the employee is entitled to compensation for economic loss — which includes legal costs.
In practice, this often means the employee may initially have legal costs covered under the legal aid scheme, but that the right to coverage ceases if the employer later pays compensation. The employee would then be responsible for legal fees and must pay these from the compensation. For this reason, we always claim reimbursement of legal costs from the employer where we assist in termination/dismissal cases.
If you are interested in the costs and funding options in termination cases, see our article on legal costs in termination cases.
Assess whether the employer followed procedural/formal requirements
A labour lawyer will, within a free legal advice mandate, assess whether the termination or dismissal is formally correct. If a termination is formally defective, it is under the Working Environment Act almost automatically invalid and gives rise to liability for the employer. For dismissals, lack of formalities does not automatically render it invalid but is an important factor in the assessment of justification. Formalities include informing the employee of key rights and conducting a consultation meeting before termination/dismissal. Failure to hold such a meeting breaches procedural rules and can affect the assessment.
Assess whether the termination/dismissal is substantively justified
Even if formalities are met, the termination or dismissal must be substantively justified. A labour lawyer will therefore assess whether there is a proper basis for the decision. If found unjustified, it gives rise to employer liability. Under certain conditions, a claim for reinstatement may also be possible.
The lawyer will assess the legal basis for the termination/dismissal — in short, whether the employer had the right to terminate or summarily dismiss.
Negotiation meeting with the employer
The lawyer will then demand a negotiation meeting with the employer and present the claims supported by the case — whether reinstatement and compensation, or compensation only. If negotiations lead to an amicable settlement, the case ends there. As noted, where compensation is paid, the employee is responsible for the lawyer’s fee — normally covered wholly or partly by the employer in the settlement. If negotiations fail, the lawyer can — if the employee so wishes — bring the case before the District Court.
Court proceedings
In court, the employee may claim reinstatement and compensation, or compensation for economic loss due to an unjustified and/or invalid termination/dismissal. Court proceedings are covered by the free litigation track. The application is submitted to the court. The same economic rules apply as for applications to the County Governor.
As a rule, free litigation applies to the District Court level only. If the case is lost, you should not expect free litigation for an appeal. If the case is won and the employer appeals, legal aid will normally continue at the Court of Appealstage.
Read the Norwegian version fri rettshjelp ved oppsigelse
If you have received termination or summary dismissal, contact us for a non-binding assessment. We know your rights, assess whether you qualify for free legal aid, and explain what we can do for you. Use the contact form on this page, email post@verito.no, or call 24 02 21 20.
Sources
Circular on Free Legal Aid
Legal Aid Regulation (Rettshjelpsforskriften)
Legal Aid Act (Lov om fri rettshjelp)
Working Environment Act § 15-12
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posted 3 days ago
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