Contracts

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Contracts

“They refused to give me a contract every time I was asking for it, they made
me work more than 65 hours per week sometimes abusing me as a new worker
because obviously if I said no I would lose my job or not finally get my contract.”

“…it was our first time in Iceland so we didnt know much about the working
conditions. The owner didnt give as a normal contract we just get something like
Agreement about the helping without any conditions, salary amount etc… It was
paid much less than is the legal minimum, we didnt have any insurance and we
were working 6 days per week almost all day (serving breakfast + housekeeping
+ serving dinner).”

“Hired as a full time receptionist but was then asked to do 80% of housekeeping
instead.”

An employment contract is a binding agreement between the employer and the employee specifying the agreed upon working conditions and compensation. The contract attributes rights and duties to each party.

In Icelandic labour law, an employment contract can be either formal or informal, such as e-mail or text message, and can even be formed orally.

With or without a written employment contract, the relevant collective agreement within the trade union that pertains to the job in question applies.

The Icelandic Confederation of Labour (ASÍ) recommends written contracts. Check also our website for what to look out for in a written contract.

white wooden house in the middle of grass field

In Iceland, it is quite common that employees rent residental housing from their employer, especially in the countryside. The lease/rental agreement has to be separate from the employment contract and must include: amount of rent, description of the space, where and how the rent is paid, whether the rental agreement is temporary.

Common contract problems among foreign workers

No employment contract (even when requested), can lead to:

Wages changing

Working conditions changing (tasks, hours, etc)

Working illegally

Not paying union dues, pension fund or social insurance (without being aware of it)

No notice period

There is a strong connection between no contract and wage-theft (being paid below minimum wage) in the testimonies. No contract also makes the workers’ case more difficult.