Reimbursement of Legal Assistance Costs: The Possibilities and Limitations—Labor Law 2026/38

Litigation is often costly, particularly due to the services of an attorney or other legal professional. One of the parties—in this article, typically the employer or the employee—may be ordered to reimburse the other party for litigation costs and any out-of-court expenses. Generally, the amount of these reimbursements is determined based on flat rates that fall far short of covering actual costs; however, under certain circumstances, the court may rule that the actual costs incurred must be reimbursed. In this article, I outline the possibilities—and limitations—of obtaining reimbursement for legal assistance costs. The term “legal representation costs” refers to the costs incurred as a result of engaging an attorney or other legal service provider.