What happens if your employer goes bankrupt? The wage guarantee scheme

If your employer goes bankrupt, you risk losing the wages you are owed. The wage guarantee scheme ensures that NAV covers your wage claim—but you must act quickly.

The wage guarantee scheme: NAV secures your wages

The wage guarantee scheme (Wage Guarantee Act) is a state arrangement that steps in when an employer cannot pay wages because the business is bankrupt. NAV covers your wage claims up to certain limits.

You are protected if:

• The employer is declared bankrupt by the district court
• Your claim is a prioritized wage claim (given priority in the bankruptcy estate)
• You meet the deadlines for reporting your claim

The wage guarantee applies to all employees, regardless of citizenship, employment type, or residence status. Fixed-term, part-time, and seasonal workers are included.

What is covered? (wages, holiday pay, severance)

The wage guarantee covers:

Maximum limit (2026): NAV covers claims up to 2 times the basic amount (2G) = 2 × 136,549 kr = 273,098 kr (G as of 1 May 2026). Claims exceeding this are not covered by the wage guarantee, but can be reported as ordinary claims in the bankruptcy estate.

What is NOT covered:

• Loans you have given to the employer
• Allowances that are not wages (e.g., travel expenses as reimbursement)
• Claims older than the limits set by the Wage Guarantee Act
• Shares or ownership stakes

Deadlines: you MUST report claims within 3 months

This is the most important rule: You MUST report your wage claim to the bankruptcy estate (trustee) within 3 months from the bankruptcy filing. If you miss this deadline, you lose your right to wage guarantee coverage.

Here is how you do it step by step:

1. Check if bankruptcy is filed – registered in the Brønnøysund Register (brreg.no)
2. Find the trustee's name and address – stated in the bankruptcy notice or by contacting the district court
3. Report your claim in writing to the trustee within 3 months. The trustee forwards the claim to NAV
4. NAV processes the claim and pays approved amounts directly to you
5. NAV assumes the claim and seeks to collect it in the bankruptcy estate as a prioritized claim

You can also contact NAV directly (55 55 33 33) and ask for guidance on the wage guarantee application process.

What is not covered by the guarantee scheme?

Although the wage guarantee is broad, it is important to know the limitations:

• Claims over 2G: Amounts exceeding 273,098 kr (2026) are not guaranteed. You can report these as ordinary claims in the bankruptcy estate, but there is a low chance of coverage
• Claims older than 3 months: Wages you should have received more than 3 months ago are generally not covered
• Self-employed: Sole proprietorships (ENK) and self-employed individuals are NOT covered by the wage guarantee – they are not employees under the law
• Board members and majority shareholders: May be excluded from the scheme

As an immigrant: what else you need to know

1. Same rights: The wage guarantee scheme applies to all employees in Norway regardless of citizenship, EEA status, or residence status.
2. Documentation: Have pay slips, employment contracts, and time records available. Without documentation, your claim may be rejected.
3. Undeclared work: If you worked illegally (without tax), it may be difficult to document your claim. Even undeclared work can entitle you to wage guarantee if it can be proven.
4. Temp agencies and temporary work: If you work through a temp agency and the agency goes bankrupt, the wage guarantee applies. The client (user) is jointly liable for the wages. Read more about temp agencies and your rights as a temporary worker.
5. Labor unions: Union members get help from their organization in reporting claims. Learn more about labor unions and the Norwegian labor relations model.

How to report your claim to NAV wage guarantee: step by step

When your employer goes bankrupt, you must act quickly to secure the wage guarantee from NAV. The process begins when the bankruptcy estate is opened, and the trustee (bankruptcy administrator) notifies the public bankruptcy register. You do not need to wait for NAV to contact you – you can and should report your claim yourself.

First step: Gather all documentation showing that you were employed and what you should have received. This includes employment contracts, pay statements, tax returns, and any written correspondence with the employer. NAV will also contact the Tax Authority to verify your employer reporting (A-report).

Second step: Complete form G-6300 "Wage Guarantee Claim" available at nav.no. You must specify the period during which wages were not paid, the amount you claim, and provide documentation. NAV typically has a 3-month deadline from the bankruptcy date to report claims – after this date you cannot receive wage guarantee.

Third step: Send your claim to NAV along with all your attachments. You can do this digitally via nav.no or by mail. NAV recommends registered mail. Stick to the deadline – it is not flexible.

Timeline: NAV typically processes claims within 4-6 weeks. You will receive a letter with a decision. If NAV approves the wage guarantee, the money will be transferred to your account. According to the state wage guarantee scheme, wages are covered up to 6 times the National Insurance basic amount (G), which for 2024 amounts to approximately 111,477 kroner per year. This means the maximum amount per year is approximately 668,862 kroner.

What is covered – and what is not?

The wage guarantee covers wages for work performed, but it is important to know precisely what NAV will recognize and what falls outside the scheme.

Covered by wage guarantee:

• Regular wages and hourly pay for work actually performed (last two calendar months before bankruptcy)
• Holiday pay up to 1.5 times the National Insurance basic amount (approximately 167,215 kroner for 2024)
• Employer's contribution tax that the employer should have paid
• Pro-rated wages if you were in a reduced position
• Wages for sick leave for the first 16 days (if the employer should have paid)

NOT covered by wage guarantee:

• Bonuses, commissions, or performance-based wages (even if agreed upon)
• Meal allowance (meals during travel)
• Car allowance or mileage allowance above collective agreement rate
• Gratification or other performance-based wages
• Compensation for notice period if you have no documentation that you worked
• Wages for work you did not perform
• Overtime pay that is not documented
• Pension contributions or fund savings

Edge case: If you received partial wages before the bankruptcy (for example 30% of your usual salary), only the amount actually paid is covered. If the employer owed you full wages but only paid half, the wage guarantee covers only what you should have received, not what was actually paid.

What do you do if NAV rejects your wage guarantee claim?

If NAV rejects your wage guarantee claim, you are not without options. You have the right to appeal and can also receive free legal assistance.

Appeal deadline: You have 6 weeks from receiving the rejection to appeal. This deadline is absolute – if you wait longer, you lose your right to appeal. Write "Appeal of wage guarantee decision" and send it to NAV with the reference number from your original decision.

The appeal process: NAV will reconsider your appeal. If NAV upholds the rejection, the case is forwarded to the National Insurance Court, which is an independent court for social insurance cases. The National Insurance Court reviews the case completely anew and can both reverse and uphold NAV's decision.

Legal assistance: You have the right to free legal help if you meet the income limits (for 2024 this was approximately 96,100 kroner in monthly income for a single person). Contact the Legal Aid Service in your municipality or get in touch with a labor union (if you are a member). Many unions cover legal costs for their members.

Testimony and evidence: If NAV claims that you did not work on the relevant days, you can present testimony from colleagues, receipts showing you were at work, or time records. If the employer went bankrupt before the A-report was submitted, you can demand that the Tax Authority use other sources to confirm the employment relationship.

Employment certificate and references after bankruptcy

An important right that many employees forget: you have the right to an employment certificate even when your employer is bankrupt. This is critical for getting a new job.

Your right: According to the Working Environment Act § 7-5, the employer (or bankruptcy estate) is required to issue an employment certificate upon request. The certificate must contain the employer's name, your name, when you were employed, job title, and the type of work you performed. It must be objective and neutral.

Practical implementation: Contact the trustee (bankruptcy administrator) who is responsible for the employer's papers. The trustee must find your employment agreement and issue the certificate. If the trustee refuses or does not respond within a reasonable time, you can contact the Labour Inspection Authority, which can order the bankruptcy estate to fulfill the obligation.

References from bankruptcy: You can also demand that the bankruptcy estate or former management provide you with references. A reference is not a legal requirement in the same way as an employment certificate, but the employer cannot give you negative or unreasonable references. If you receive an unfair reference, you can file a complaint with the Labour Inspection Authority.

Practice: In practice, it is best to get the employment certificate in writing with an original signature or digital signature. This is used when you apply for a new job. If you do not receive it within two weeks, it is recommended to send a written request to the Labour Inspection Authority.