Understanding Labor Regulations in Iceland

Iceland has enacted laws that regulate the way employers treat their employees in their respective workplaces. The term ‘collective agreement’ is often heard in connection with labour law in Iceland. It is estimated that almost 90% or even more of employees at different levels in the country are covered by collective agreements.

The general objectives of Icelandic labour law are to protect the rights of employees and to regulate relations between employers and employees. Employees' rights also include their social rights.

What Aspects of the Employee Rights Do These Laws Cover?

There are many areas that the laws in Iceland cover for the benefit of employees. Some of them are listed below:

• Collective bargaining agreements
• Forming and running trade unions
• Contractual employment
• Hours of working
• Special allowances for holidays
• Compensation to employees when they meet with accidents or fall sick
• Workplace safety and hygiene
• Keeping the workers informed
• Provision for engaging foreign workers in Iceland

These are some of the most important areas. There are more. You will find that there is no single law that you can refer to or follow. There are at least two dozen laws and regulations that enforce workers' rights. They relate to employees' pension rights and insurance regulations. There is a law that deals with the issue of equal rights for men and women. A labour law in Iceland deals with the hiring of part-time workers. There is also a law that focuses on the free right to employment and residence within the European Economic Area (EEA).

The laws are therefore quite comprehensive and attempt to deal with all conceivable issues relating to labour and employees. These laws apply to all those employed in government and state-owned enterprises.

Some Interesting Provisions and Exclusions

There are certain areas of Icelandic labour law that may seem ambiguous to the outsider. The case of issuing a written employment contract is one of them. The statutes do not expressly stipulate that employees must be issued with a written employment contract. Oral employment contracts are also accepted practise in the country.

However, there are provisions stating that in the case of a collective labour agreement on the basis of which an employment contract is issued, aspects such as the number of weekly working hours, the minimum wage to be paid, etc. must be mentioned.

Dispute Resolutions Mechanism in Place

There is also a law on contractual arbitration, which is part of labour law in Iceland. This law is intended to protect the rights of employees in the event of a dispute with the employer over compliance with contractual agreements.

Rules on Termination and Compensation Included

The Icelandic government’s regulations for employers contain special provisions in the event that an employee is dismissed by their employer. There are clearly defined procedures that must be followed.

Provisions in law for Recruitments Too

You may be surprised to learn that there is a provision on job advertisements in the Icelandic laws governing labour rights. This states that when advertising a particular job, the employer may not mention that the applicant responding to the advert must be of a certain gender. The only exception to this is if the employer is trying to compensate for the inequality that already exists. For example, if there are more men than women in a particular workplace, advertising for female employees is permitted.

Finally, there are provisions to protect the rights of both the employer and the employee in conducting background checks before the job is offered. Certain areas such as criminal history, drug addiction, etc. can be checked by the employer.

For more information, feel free to contact Swapp Agency .