Remarks: The labour market is for the most part regulated by means of collective bargaining. The social partners play therefore an important role in setting working time arrangements and various employment rights of workers. Collective agreements cover approximately 88% of the workforce. (Introduction of the Labour Law)
SOURCES
Name of Act
Icelandic Labour Law (A summary of basic rights and obligations on the private labour market) issued by the Icelandic Confederation of Labour (ASI). Fifth edition. December 2010.
Remarks: This booklet contains information on trade unions and collective bargaining, employment contracts, wages and working time, holiday allowance, payments in case of accidents and sickness, health and safety in the workplace, maternity and paternal leave, information and consultation of workers, access of foreign workers into the labour market and other related issues. In addition to that, workers rights are also protected in various pieces of legislation which deal with particular aspects of the employment relationship and the social rights of workers.
Name of Act
Act No. 151/2006 on information and consultation in undertakings.
Remarks: This Act shall apply to undertakings in which an average of at least 50 persons is employed on the domestic labour market. The Minister may issue a regulation containing further provisions on the calculation of the number of employees in undertakings under the first paragraph of this Article. This Act shall not apply to the crews of ocean-going vessels.
Name of Act
Act No. 46/1980 on Working Environment, Health and Safety in Workplaces, as amended up to Act No. 88/2008.
Remarks: This Act covers all activities, where one or more persons are employed, whether they are owners of the enterprise or employees. Exempted from this Act are shipping operations and other projects that are specifically entrusted to the Icelandic Maritime Administration as well as the work of the crews on aircrafts. Chapter 1
The provisions of the Chapter IX (Rest time, Holidays and Maximum Working Hours) shall not apply to: 1. those who work at road transport and are covered by Acts and regulations concerning 1) drivers’ driving hours and rest time, etc., in domestic transportation and transportation within the European Economic Area, 2. senior managers or other persons who decide their own working hours, 3. special circumstances relating to the functions of the state, such as necessary security activities and urgent investigative interests in the field of law enforcement, work connected with civil defence and monitoring activities in connection with avalanche prevention measures. Art.52a)
Name of Act
Act No. 30/1987 on the Holiday Allowance as amended up to Act No. 133/2011.
"Working time" shall mean the time during which a worker is engaged in work, at the disposal of the employer and doing his job or discharging his obligations.
Act on Working Environment, Health and Safety in Workplaces Art.52
Employee/worker
Employee signifies, in this Act, each individual who holds a job for services paid by someone else. Students and apprentices shall also be considered as employees, even though they work without payment, providing that their work constitutes part of formal studies.
Act on Working Environment, Health and Safety in Workplaces Art.24
Employer
The employer shall be anybody who operates any kind of business. If operated jointly by two or more people, only one of them shall be considered the employer in terms of his obligations with the employees. According to this Act, the executive director of a company is considered the employer.
Act on Working Environment, Health and Safety in Workplaces Art.12
Night work(er)
"Night working time" shall mean a period not shorter than 7 hours, which shall extend across the period from midnight to five o’clock in the morning. Further definition of the period shall be a matter of agreement between the organisations of the social partners. "A night worker" is: - a worker who regularly performs at least three hours of work falling in the period between 11pm and 6am., and/or - a worker who is expected to do a certain part of his annual work contribution during night working time according to an agreement between the organisations of the social partners.
Act on Working Environment, Health and Safety in Workplaces Art.52(3)(4) Icelandic Labour Law Art.6.5
Shift work(er)
"Shift work" shall mean work that is divided according to a predetermined arrangement by which a worker works on various shifts over a specific period that is measured in days or weeks.
Act on Working Environment, Health and Safety in Workplaces Art.52.5
Young worker
"Young workers" shall mean workers who are between 15 and 18 years old and are no longer in compulsory education. They may be engaged in employment that is not dangerous or harmful for their health upon the provisions set forth in this Act.
"Children" shall mean the individuals who are under 15 years old. They shall not be engaged in employment unless in the following cases:
- Children may be engaged to participate in cultural or artistic events and sporting or advertising activities. A party who engages children who have not attained the age of 13 years shall obtain a licence from the Administration of Occupational Safety and Health before the engagement takes place. - Children aged 14 years and older may be engaged in work that constitutes part of theoretical or practical studies. - Children who have attained the age of 14 years may be engaged in light employment. Children who have attained the age of 13 years may be engaged for a limited number of hours per week in light employment such as light gardening or service jobs and other comparable jobs.
Act on Working Environment, Health and Safety in Workplaces Art.59, 60
NORMAL HOURS LIMITS
Daily hours limit
General limit
The day-time work limit is according to collective agreements fixed in 8 hours per day in a 5-day working week from Monday to Friday.
Icelandic Labour Law Art.5.2
Special categories
» Young workers
Active working time for workers between 15 and 18 years old shall be limited to eight hours a day and 40 hours a week. However, exceptions shall be permitted in special cases, or if legitimate circumstances so demand.
Act on Working Environment, Health and Safety in Workplaces Art.63
Weekly hours limit
General limit
The weekly working hours limit is fixed in 40 hours according to collective agreements.
Workers’ maximum working hours per week, including overtime, may not exceed 48 hours, on average during each four-month period.
Act on Working Environment, Health and Safety in Workplaces Art.55 Icelandic Labour Law Art.5.2
Reference period(s)
The weekly hours limit of 48 average hours is fixed over a four-month reference period.
By agreement between the organisations of the social partners, it shall be permitted to calculate workers’ maximum working hours on the basis of a reference period that may be up to six months.
If objective or technical reasons obtain, or in view of the special nature of the jobs in question, the organisations of the social partners may determine by agreement that workers’ maximum working time shall be calculated on the basis of a reference period of up to 12 months, providing that the general principles of this Act regarding the protection of workers’ safety and health are observed.
Act on Working Environment, Health and Safety in Workplaces Art.55
Special categories
» Young workers
Active working time for workers between 15 and 18 years old shall be limited to eight hours a day and 40 hours a week. However, exceptions shall be permitted in special cases, or if legitimate circumstances so demand.
Act on Working Environment, Health and Safety in Workplaces Art.63
OVERTIME WORK
Criteria for overtime
General
Overtime work is the work performed in excess of 8 hours per day and 40 hours per week.
Icelandic Labour Law Art.5.2
Limits on overtime hours
Specific limits on overtime work are not provided. However the legislation states that the maximum working hours per week, including overtime, may not exceed 48 hours.
In addition, as provided in the Icelandic Labour Law, it is unlawful for employers to schedule longer than 13 working hours on the same day.
Therefore, taking into account the regular weekly and daily working limit (40 hours per week and 8 hours per day), the maximum number of overtime hours that a worker may perform is 8 hours per week or 5 hours on the same day.
Act on Working Environment, Health and Safety in Workplaces Art.55 Icelandic Labour Law Art.6.3
Compensation for overtime work
Overtime rate(s)
Overtime is paid at an hourly rate equalling 1.0385% of the monthly wages for regular day work.
Icelandic Labour Law Art.5.2
SCHEDULES
Relevant provisions have not been identified.
REST PERIODS
"Rest time" shall mean time that is not counted as working time.
Act on Working Environment, Health and Safety in Workplaces Art.52.2
Rest breaks
General provisions
Every worker is entitled to a rest break if his daily working time is longer than six hours. The application of this provision, such as concerning the length of the breaks and whether they are paid for or not, shall be decided by agreement between the organisations of the social partners.
Coffee Breaks are paid and usually have a length of 35 minutes, while the minimum length is 15 minutes, rest time which shall be included in the 8 working hours.
The duration of a Meal Breaks varies between sectors of the labour market, ranging from 30 minutes to 1 hour, taken between 11:30 and 13:30. The lunch break is not counted as working time and therefore unpaid. According to the collective agreement of trades’ men, the lunch break on weekends is however considered as worked time.
Meal Breaks during overtime are reckoned as working time and paid for with overtime rate. The same applies to coffee breaks during over time hours.
Work shall only be performed during meal and coffee breaks provided that the workers agree. Work during meal or coffee breaks during the day counts as overtime and must be paid for as such.
Act on Working Environment, Health and Safety in Workplaces Art.53a) Icelandic Labour Law Art.5.2, 6.3, 7.1, 7.2, 7.3, 7.4
Special categories
» Young workers
If the active working time each day is longer than four hours, the child or teenager shall have the right to at least 30 minutes’ break each day, which shall run continuously if possible.
Act on Working Environment, Health and Safety in Workplaces Art.63
Daily rest periods
Duration
Working time shall be arranged so that during every 24 hours, counting from the beginning of the working day, workers shall receive at least 11 hours’ continuous rest.
If possible, such daily rest period should fall between 11pm and 6am.
Act on Working Environment, Health and Safety in Workplaces Art.53 Icelandic Labour Law Art.6.3
Exceptions
By agreement between the organisations of the social partners, it shall be permitted to shorten the period of continuous rest to as little as eight hours if the nature of the work or particular working methods necessitate such a deviation.
Deviations from the 11 hours daily rest period may be made if a disruption of normal activities occurs due to external causes, such as the weather or other natural forces, accidents, power failure, malfunction in machinery, equipment or other device or other comparable unforeseeable events, to the extent necessary to prevent substantial loss or damage until regular activities have been resumed.
If daily rest time is shortened the worker shall receive compensatory rest later.
Act on Working Environment, Health and Safety in Workplaces Art.53
Special categories
» Young workers
Young workers shall receive at least 12 hours’ continuous rest in every 24-hour period.
Exceptions to this rule may be made when legitimate circumstances obtain, and on condition that the teenagers receive suitable additional rest time. This exemption shall apply in the case of work in health institutions or comparable institutions, jobs in agriculture, tourism or hotel and catering operations, and work that is spread over the day.
Act on Working Environment, Health and Safety in Workplaces Art.63b)
Weekly rest periods
Duration
» General
In each seven-day period, the worker shall receive a weekly rest period of at least one day.
Act on Working Environment, Health and Safety in Workplaces Art.54
» Exceptions
In the event of special necessity due to the nature of the job involved, the weekly holiday may be postponed by agreement between the organisations of the social partners so that the worker receives the corresponding rest time later, and in all cases within 14 days.
Where special circumstances render such a deviation necessary, it may, however, be decided by agreement in the workplace to postpone the weekly rest time so that instead of a weekly holiday, two consecutive rest days shall occur during every two weeks.
Furthermore, the weekly holiday may be postponed when external causes, such as the weather or other natural forces, accidents, power failure, malfunction in machinery, equipment or other device or other comparable unforeseeable events disrupt, or have disrupted, operations and it is necessary to maintain services or production, providing that the worker receives the corresponding rest time later and as soon as this can be arranged.
Act on Working Environment, Health and Safety in Workplaces Art.54
Day specified
» General
If possible, the weekly day off shall fall on a Sunday and, if possible, every worker of a given employer shall have that day off.
Icelandic Labour Law Art.6.4
» Exceptions
If necessary, and after consultation with its workers, a employer may postpone the weekly day off where special reasons make such an exception unavoidable.
If there is a special need to organize the work in a way that calls for the postponement of the weekly day off, a special agreement shall be made to that effect.
Icelandic Labour Law Art.6.4
Special categories
» Young workers
Young workers shall enjoy a weekly rest period of at least 2 days which shall be continuous if possible. This minimum rest period shall normally include a Sunday.
Exceptions to this rule may be made when legitimate circumstances obtain, and on condition that the teenagers receive suitable additional rest time. This exemption shall apply in the case of work in health institutions or comparable institutions, jobs in agriculture, tourism or hotel and catering operations, and work that is spread over the day.
Act on Working Environment, Health and Safety in Workplaces Art.63b)
ANNUAL LEAVE AND PUBLIC HOLIDAYS
ANNUAL LEAVE
Duration
» General
The legislation provides for a minimum of two working days’ holiday for each month in employment during the past holiday allowance year (May 1st to April 30th). The minimum holiday for each year is therefore 24 working days. Sundays and other public holidays do not count as holidays in this respect, nor the first five Saturdays during holidays.
Holiday Allowance Act Art.3 Icelandic Labour Law Art.10.2
Payment
» Amount
Every worker in a paid employment relationship is entitled to a holiday allowance to be enjoyed during the annual leave period and calculated at the time of each wage payment. The minimum holiday allowance is 10.17% of total wages of the past year.
The Minister shall issue rules on the calculation of the holiday allowance of employees who do not receive wages directly from their employer, but are paid by means of a service charge or in another manner that is different from the usual manner of wage payment.
Holiday Allowance Act Art.1,7,10 Icelandic Labour Law Art.10.3
» Date of payment
The accrued holiday allowance shall be paid to the wage earner on the last workday before the beginning of his holidays, consistent with the daytime wages of the employee on the first day of his holidays.
Holiday Allowance Act Art.7
Schedule and splitting
A continuous annual leave of 14 days shall be granted during the summer holiday season period (2 May to 15 September). By mutual agreement, parties may make an exception to this rule on the division of the holiday period. However, holidays shall always be taken before the end of the holiday allowance year.
An employer shall, in consultation with his employees, decide when holidays are to be granted. He shall comply with the wishes of his employees, to the extent possible, as to when holidays are granted, taking into account the operations of his company. After the employer has ascertained the wishes of his employee, he shall, as soon as possible and at the latest one month before the beginning of the holidays, announce when they are to begin, unless special circumstances make this impossible.
Holiday Allowance Act Art.4, 5
Work during annual leave
No person shall be permitted to work for pay in his field of work, or related fields of work, while he is on annual leave; further provisions on this matter may be issued by regulation.
Holiday Allowance Act Art.12
PUBLIC HOLIDAYS
Workers hired under a contract for day time work are not required to perform their duties on special or public holidays, unless they agree to do so.
Employers and their workers are authorized, on the basis of a provision in collective agreements, to transfer public holidays which fall on Thursdays (Resurrection day and First day of summer) onto the next working day, for example Friday or Monday, or connect them to other holidays. The purpose of such an arrangement is to establish in those circumstances a working week of at least 4 consecutive working days.
Icelandic Labour Law Art.5(3)(4)
Number and dates
Special holidays are New Year’s Day, Good Friday, Easter Sunday, White Sunday, 17th of June (Icelandic Republic Day), The day before Christmas (Christmas Eve) after 12 am., Christmas day and the last day of the year (New Year’s Eve) after 12 am.
Public holidays are Maundy-Thursday, Easter Monday, Resurrection day, First day of summer (April), Labour Day (May 1), White Monday, Boxing Day and Bank Holiday (First Monday in August).
Icelandic Labour Law Art.5.3
Payment
Where a Public Holiday falls within a working week day (Monday to Friday) workers are entitled to enjoy full wage corresponding to a working day of 8 hours.
In general, this entitlement does not kick in until after one month employment with the same employer or in the same occupational sector.
Icelandic Labour Law Art.5.3
Work on Public Holidays
» Criteria
Work on major holidays is paid with an hourly pay equalling 1.375% of the monthly wages for regular day work, in addition to the 8 hours day-time wages.
Work performed on public hoildays is remunerated with overtime pay(hourly rate equalling 1.0385% of the monthly wages) in addition to the 8 hours day-time wages.
Icelandic Labour Law Art.5(2)(3)
EMERGENCY FAMILY LEAVE
Relevant provisions have not been identified.
PART-TIME WORK
Right to equal treatment
Part-time workers are according to a general provision in collective agreements to be treated equally as full time workers on a pro-rata basis.
Icelandic Labour Law Art.16.2
Permissable justification for different treatment
Under a collective agreement negotiated by ASI and SA, employers are not allowed to discriminate against part-time workers unless it is justifiable on objective grounds.
Icelandic Labour Law Art.16.2
NIGHT WORK
Criteria for night work
"Night working time" shall mean a period not shorter than 7 hours, which shall extend across the period from midnight to five o’clock in the morning. Further definition of the period shall be a matter of agreement between the organisations of the social partners. "A night worker" is: - a worker who regularly performs at least three hours of work falling in the period between 11pm and 6am. - a worker who is expected to do a certain part of his annual work contribution during night working time according to an agreement between the organisations of the social partners.
Act on Working Environment, Health and Safety in Workplaces Art.52 Icelandic Labour Law Art.6.5
Limits
Daily hours limit
Night workers’ working time shall normally not be longer than eight hours during each 24-hour period.
However, under certain circumstances and by agreement between the organisations of the social partners it shall be permitted to lengthen night workers’ working time.
Act on Working Environment, Health and Safety in Workplaces Art.56
Weekly hours limit
By agreement between the organisations of the social partners it shall be permitted to lengthen night workers’ working time so that it becomes, on a regular basis, up to 48 hours per week. In such cases, work shall be arranged in such a way that working time is as regular as possible.
Act on Working Environment, Health and Safety in Workplaces Art.56
Compensation
Work performed outside daytime hours is remunerated with overtime pay. Overtime is paid at an hourly rate equalling 1.0385% of the monthly wages for regular day work.
It is not permitted to pay daytime wages for work performed during hours outside daytime hours even though the worker in question has not done his full 8 hours in day-time.
Icelandic Labour Law Art.5.2
Workers' health
Night workers who have health problems that can demonstrably be traced to their working time shall, when possible, be transferred to daytime jobs that suit them.
Night workers who are involved in particularly dangerous jobs, or jobs that involve great physical or mental strain, shall not work for longer than eight hours during each 24-hour period.
In relation to this provision, after receiving the comments of the Board of the Administration of Occupational Safety and Health, the Minister of Social Affairs shall issue regulations stating what jobs are considered particularly dangerous jobs or jobs that involve great physical or mental strain.
Night workers are entitled to a free health assessment before their assignment and thereafter at regular intervals. Such health assessment must comply with medical confidentiality and must be conducted within the national health system.
Act on Working Environment, Health and Safety in Workplaces Art.56,57 Icelandic Labour Law Art.6.5
Transfers
Night workers suffering from health problems recognized as being connected with the fact that they perform night work have the right to be transferred whenever possible to day time work to which they are suited.
Icelandic Labour Law Art.6.5
Special categories
Young workers
Workers between 15 and 18 years old may not be made to work during the period between 22.00 hours and 06.00 hours.
Exceptions might be made to this rule in special lines of work, providing that an adult person supervises the teenagers if such supervision is necessary for their protection. However, teenagers may not be made to work during the period from 24.00 hours to 04.00 hours.
Where legitimate reasons for doing so, and providing that the teenagers receive suitable additional compensatory rest time, teenagers might be made to work even within the period from 24.00 hours to 04.00 hours. This exemption shall apply in the case of work in health institutions or comparable institutions, and jobs in the spheres of cultural events, the arts, sports or advertising.
Prior to beginning night work, and at regular intervals thereafter, teenagers shall have the right to a health check and a check on their working capacity, at no cost to themselves, except when they only work in exceptional cases during the times at which work is prohibited. The employers involved shall be responsible for having such checks carried out.
Act on Working Environment, Health and Safety in Workplaces Art.63a)
SHIFT WORK
Criteria for shift work
"Shift work" shall mean work that is divided according to a predetermined arrangement by which a worker works on various shifts over a specific period that is measured in days or weeks.
Most collective agreements contain an authorization on shift work applying to a part or all workers of a company.
A shift differential is paid for work carried out during the period from 16:00 hours (from 17:00 hours at restaurants and hotels) to 08:00 hours and on weekends.
Overtime is paid for work in excess of 40 hours average per week as shift work.
Act on Working Environment, Health and Safety in Workplaces Art.52 Icelandic Labour Law Art.5.6
Daily rest period
The general daily rest period of 11 consecutive hours may be reduced to 8 hours in case of workers performing shift work.
Icelandic Labour Law Art.6.3
ON-CALL WORK
Relevant provisions have not been identified.
FLEXITIME
Relevant provisions have not been identified.
CASUAL WORK
Relevant provisions have not been identified.
SHORT-TIME WORK/WORK-SHARING
Relevant provisions have not been identified.
RIGHT TO CHANGE WORKING HOURS
Type of changes permitted
If safety or health of a pregnant woman, a woman who has recently given birth to a child, or a woman who is breastfeeding a child, is considered to be in danger according to a special assessment, her employer must make the necessary arrangements to ensure the woman’s safety by temporarily changing her working conditions and/or working hours. If this is not possible for technical reasons, or other valid reasons, the employer must entrust her with other tasks; if this is not possible, the employer shall grant her leave of absence for the length of time necessary to protect her safety and health.
Icelandic Labour Law Art.14.4
Reasons for request
General
Night workers who have health problems that can demonstrably be traced to their working time shall, when possible, be transferred to daytime jobs that suit them.
Act on Working Environment, Health and Safety in Workplaces Art.57
INFORMATION & CONSULTATION
Information
Employers shall provide the employees’ representatives with information concerning the following: - recent developments and the outlook concerning the undertaking’s activities and financial standing, - the situation, structure and outlook regarding employment in the undertaking, and all foreseeable measures, particularly where a threat to job security is involved, - decisions that are likely to lead to substantial changes in the structure of work or employees’ employment contracts, including decisions that are based on the provisions of the Changes of Ownership of Undertakings Act and the Collective Redundancies Act.
Employers shall be obliged to provide the Administration of Occupational Safety and Health with the information necessary for monitoring the application of this Act regarding working time, including information on the number of night workers and their working time.
Act on Working Environment, Health and Safety in Workplaces Art.58 Act No. 151/2006 Art.4
Consultation
Following on the providing of information, the employees’ representatives shall be given an opportunity for consultation by meeting the employer and obtaining a response to any opinion that they may express. Furthermore, the employer shall explain to the employees’ representatives his reasons for that response.
Act No. 151/2006 Art.5
Results generated on: 19th April 2024 at 07:29:11.
Summaries and full texts in the TRAVAIL Legal Database are provided for information purposes only and are not intended to replace consultation of the authentic legal texts. We update the database regularly but are unable to guarantee that the laws it contains are always complete, accurate and the most recent version. Please contact us if you have updated information.
