Termination of contract
The principal rule in Iceland is that employers and employees are equally authorized to cancel employment contracts without stating the reason for this. Employees are generally hired without time limits, in which instance the employment contract is cancelled with a termination notice period as stated in the collective agreements. The employment-termination notice is mutual and such employment cancellations shall be in writing and in the same language as the employee’s employment contract. The employee has the right to an interview regarding the end of his employment and the reasons for the termination of his employment and can request them to be stated in writing. A request for the interview shall be given within 96 hours from the employees’ knowledge of the contract´s termination. Should the employer fail to fulfil the said request the employee is entitled to another interview with the employer in the presence of his or her union steward or other representative of the union, should he or she request so.
The freedom of the employer to terminate the employment contract is in certain cases restricted by law. See also: Termination of employment