The Icelandic Confederation of Labour (ASI) is pleased to present on this website this summary of labour law and trade union rights in Iceland. Here the reader will find information about 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. Information on Icelandic Labour Law can also be found on the ILO website - Iceland.
Collective bargaining between the social partners has a long tradition in all sectors of the labour market. Wages and other terms of employment are set by the social partners and this method of regulating the labour market is strengthened by a specific provision of law which makes their collective agreements generally applicable and binding upon all workers and employers operating within the boundary of the applicable agreement, whether general workers, tradesmen, office workers etc.
Worker’s rights are also protected in various pieces of legislation which deal with particular aspects of the employment relationship and the social rights of workers (legislation in English / health and safety).
The focus is on the general or private labour market. The public labour market is governed by a different set of rules. We use both the concept of "worker" and "employee" - they mean the same so their use does not inadequate any difference.