The job market in Iceland is, as in most countries, varying. There are a number of ways to go about job searching. For best results you may wish to use all of the methods listed below: 

• Employment agencies (Ráðningarþjónustur)- You may, free of charge, register with one or many professional employment agencies. They will tell you what information you need to have readily available. For instance, a curriculum vitae / resumé, certificates, diplomas and references. If you are not from an English speaking country it is a good idea to have your information translated into English or if possible, Icelandic, while still in your own country.

• Contact local branches of your professional or trade union (stéttarfélag, verkalýðsfélag)- They have information on the current employment trends within your profession and may give advice on where to start looking.

• Read the (classified) advertisements in the local newspapers- The three largest papers in Iceland are Morgunblaðið, Fréttablaðið and Blaðið. The employment section comes out on Sundays in the Morgunblaðið and the Fréttablaðið, but there are often daily advertisements. Sometimes it pays to put in your own advert for employment.

• Phoning and visiting- If you know what kind of business you want to work for you may wish to call them directly or visit them and ask if there are any jobs available, and if you may fill out an application.

• Contacts- Tell everyone you know in Iceland that you are looking for employment. Word-of-mouth via family and friends often gives good results.

A job interview provides a good opportunity to ask questions concerning all aspects of the job. For instance what is the job description? Does it entail a lot of physical activity? How long is the workday? Starting and finishing times, lunch and coffee break schedules, etc. Also, ask what the salary is, both for normal working hours and overtime, and when salaries are usually paid. Do not be afraid or hesitant to ask questions.

Within a period of 2 months from the time an employee starts working the employer must draw up a written contract of employment (ráðnigarsamningur). The contract should include the type and place of

work, the hours, a short job description, wages, and the job ratios (fulltime is 100%). It is illegal to work without a contract.

Wages

While situations may vary slightly for different trade and professional unions the following generally applies:

• The minimum wage for each position is settled on by an agreement made by each trade union with the employers’ representatives. Your wages should never be lower than that which is stated in this agreement.

• Regular daytime wages (dagvinnukaup) are paid for the first 8 hours of each workday. Working days are considered to be from Monday to Friday. The typical workday is from 8:00 to 16:00. Any work done after the required 8 hours during one workday is considered to be overtime (yfirvinnukaup), and should be paid accordingly. It is important to note that working on weekends is not considered regular day wages, there is a different rate schedule.

• For public holidays* that fall on a weekday, holiday wages are paid. In most situations if you work during a holiday you will receive both daytime and overtime wages.

• For other major holidays there is yet another wage schedule (stórhátíðakaup). If you work on Christmas Day (jóladag), Easter Sunday (páskadag), New Years Day (nýársdag), Whit Sunday/Pentecost (hvítasunnudag) or the 17th of June, ask what your wages should be as they are sometimes considerably more. The same applies if you work after 12:00 in the afternoon on Christmas Eve (aðfangadag) and New Years Eve (gamlársdag).

• It should be noted that the rules governing working hours and salaries paid on legal and contractual holidays may be different for those who work in shifts. For workers in this category, there may be special shift bonuses paid in addition to the fixed salary. There may also be special conditions regarding winter vacations.

• Remember that the wage schedule agreed upon by your union or professional society refers only to minimum wages and conditions, and therefore you cannot legally be hired for lower wages than those stipulated in that agreement. On the other hand, it is possible for an individual to negotiate for higher wages and better conditions.

• Flat Wages (jafnaðarkaup) – Some employers offer a flat wage, that is, they pay the same rate whether you work on the day shift, night shift, or on weekends. Flat wages are not part of the collective bargaining agreement package. In most cases, flat wages are slightly more than minimum wage for regular day wages, but not as much as the overtime rate. Individuals should be careful to ensure that the salary offered is in accordance with the minimum wage. If you receive flat wages you should have clear contract regarding working hours. Remember that it is illegal for employers to pay anything less than minimum wage and it is, therefore, not advisable to accept any such offer. If, after pointing this out to the employer, they do not change their offer, contact your union or The Icelandic Confederation of Labour (Alþýðusambandið).

Workers are entitled to a minimum consecutive period of 11 hours of rest during each 24-hour period and at least one day of rest per week immediately succeeding the daily minimum period of rest. The weekly day of rest, must as far as possible fall on a Sunday. The maximum working time per week shall generally not exceed an average of 48 active working hours including overtime during a 6 month period.

An employee must by law receive a payslip. The payslip has a breakdown of all wages paid and itemized information regarding all deductions, e.g. taxes, trade union dues and pension fund contributions. The payslip is very important because if the employer does not pay tax, pension fund contributions, or union dues, you may run into trouble if you do not have a copy of your payslips to prove that taxes and such have been deducted.

The general rule is that you are entitled to two vacation days for each month worked. This rule does not apply if you are absent from work, with the exception of days when you are absent due to sickness. In all wage contracts, there is a clause concerning vacation pay (orlofslaun). The minimum amount is 10.17% in addition to your base salary. There are two ways in which vacation wages are paid. The money may be paid each month into a special bank account (orlofsreikningur). You can keep track of the amounts as they are shown on your monthly paycheck. Secondly, the money may be paid out in the last check you receive before you go on vacation. In this instance, you receive your normal salary while on vacation.

The general rule is that the premium paid into a pension fund or annuity is 11% (12% after 1.1.2007) of the total salary package. The employee pays 4% of that amount, and the employer pays the additional 7% (8% after 1.1.2007). The employee may also choose to make use of an additional savings package (viðbótarsparnað), in which the employee pays 2-4% and the employer pays 2%. The aim of these savings options and pension funds are to ensure compensation to retired persons, those disabled during employment and life insurance survivor’s benefits for children and spouses. According to the law it is permitted to repay the pension fund premiums to foreign (non-EEA) citizens when they leave the country. It is, however, not an obligation and the pension funds are in fact free to decide whether they repay them or not. We encourage everyone to examine this matter in a timely fashion. The fund you are paying into depends on what type of employment you are doing and what labour union you are a member of.

To receive sick pay an employee must have been employed for the same employer for one month. After one month the employee has the right to two paid sick days every month. Right from the first day of employment, the employee has the right to receive daily wages for up to three months after a work related accident (vinnuslysalaun). Work related injuries include injuries occurring while working, running any errands connected with work and also on the way to and from work. The amount of sick days increases after 2, 3, and 5 years worked for the same employer. It is important to note that the employer is obliged to call in and let his employer know that he is sick. The employer has the right to request a doctor’s note if he suspects that the right to sick time is being abused.

All parties to the employment contract have equal rights to terminate the contract. In other words, the company employing you has the same right to dismiss you as you do to resign. There are, however, certain rules of termination that must be followed. These are determined by the trade unions and are stipulated in the trade agreements. However, they only provide for the minimum rights so it is possible to negotiate a better termination agreement with your employer or through your own trade union. There are two main factors to consider in this process: firstly, the method of termination and secondly, the length of notice given. Notification of termination should be submitted in written form and is valid as of the beginning of the following work week or the beginning of the next month.

The general rule for the length of time that must be given for termination is one month for the first year worked with the same employer, two months after three years with the same employer, and three months after five years with the same employer. Please note that this rule does not apply in all cases. In some instances, the length of time given for termination may be one month after a three-month working period, and three months if the employee has worked for six months or more. For those who have worked for less than one year different rules apply and may be as varied as there are trade unions. Be sure that you are familiar with the rules of termination in your trade union’s contract. In the case of an employee just up and quitting without due notice, the employer has the right to withold his salary.

In companies where there are five people or more, one employee acts as a liaison officer between the union, management and employees. This representative should have all the information concerning the rights and obligations of the employee. He or she also sees to it that all the rules are being adhered to. If you have any questions about your rights or obligations it is a good idea to discuss them with the union confidant (trúnaðarmaður) at your workplace. If there isn’t any such person that you know of you may contact your union or The Intercultural Centre (Alþjóðahús) for assistance.

January 1st (New Years Day)

Holy Thursday

Good Friday

Easter Sunday

Easter Monday

First day of Summer (the 1st Thursday after April 18th)

May 1st (Labour Day)

Ascension Day

Whit Sunday

Whit Monday

June 17th (National holiday)

1st Monday in August (Bank holiday)

December 24th (Christmas eve) From 12:00 onwards

December 25th (Christmas day)

December 26th

December 31st (New Years Eve) from 12:00 onwards