The Icelandic labor market

Collective agreements are the minimum as regards wages and other employment terms

According to Icelandic law, wages and other terms of employment as negotiated by the trade unions and employers organisations in collective agreements are the minimum irrespective of gender, nationality or employment period for all employees in the relevant field of work in the area covered by the collective agreement. This also applies to all employees of enterprises who are outside of the employer organisations or have not themselves entered into collective agreements with trade unions. The agreements of individual employees and employers on poorer terms of employment than stated in the collective agreements are invalid and not binding for the employee.

All jobs and industries in Iceland are covered by collective agreements.

The role of the trade unions and the union representatives

It is the role of the trade unions and union representatives at the workplace to see to it that the collective agreements that have been made are honoured in respect of foreign workers. If there are any grounds for suspicion of a breach of the rights of a foreign employee, the union representative has the right to review documents regarding wages and other employment terms of the employee. If there is no union representative at the workplace, a representative of the relevant trade union has the same authorisation as the union representative to review documents. In the event of any suspicion of any breach of rights, the appropriate step is to seek the assistance of the union representative at the workplace, who investigates the matter and demands rectification. If there is no union representative at the workplace, the appropriate step is to contact the trade union operating in the area of the relevant field of work and seek assistance.

More on:

Rights and employment terms of foreign workers on the Icelandic labour market
Website in English and Polish about workers rights
Information about trade unions and collective bargaining, employment contracts, wages and working time, holiday allowance and other related issues
Collective Agreement between the Federation of General and Special Workers and the Farmers’ Association of Iceland on wages and employment terms of employees undertaking general farming work