Your rights as a posted worker

Are you a Posted Worker?

1.  Do you generally work in a country other than Iceland for your employer?
2.  Are you posted in Iceland temporarily to work for your employer to provide certain services on their behalf?
3.  Are you posted in Iceland temporarily by your employer to work at their local branch or in a company owned by the same corporate group?
4.  Does a company in Iceland pay your employer for the work that you perform, i.e. is your employer a temporary-work agency?

If you answered 'yes' to question no. 1, and any of questions  from no. 2-4 then you are probably a posted worker.

The legal definition of 'Posted Worker'

A posted worker is an employee who is usually employed in an EEA State and is sent by their employer to temporarily work in Iceland. An enterprise is considered to have posted workers to Iceland in the following situations:

1. Workers are posted to Iceland by the company to work under their direction in connection with a contract with a user undertaking covering the provision of services in Iceland.
2. Workers are posted to Iceland by the company to its local branch, or to a company in Iceland owned by the same corporate group.
3. Workers are posted to Iceland by the company and are hired out in return for a fee to carry out duties at the workplace of a user undertaking and under its direction. This refers to temporary-work agencies.

One of the conditions that must be fulfilled in order for a situation to be characterised as posting, is that an employment relationship must exist between the worker and the posting enterprise during the period they are operating in Iceland.

Your rights as a Posted Worker

As a posted worker, you have the same right to a safe and healthy working environment as others working on the Icelandic labour market do.  You are entitled to certain rights regarding minimum wages and other wage-related issues, overtime payments, the right to holiday allowance, maximum working hours and minimum rest periods. Icelandic collective agreements stipulate minimum terms and conditions of employment for foreign workers during the time that they are temporarily posted in Iceland. Read more about it here.[1]

According to Act no. 45/2007, the following legislation applies to posted workers:

• The Working Terms and Pension Rights Insurance Act, No. 55/1980 regarding minimum wages and other wage related issues, overtime payments, the right to holiday allowance, maximum working hours and minimum rest periods.
• The Act on Working Environment, Health and Safety of the Workplace, No. 46/1980.
  
• The Holiday Allowance Act, No. 30/1987.
  
• The Maternity, Paternity and Parental Leave Act, No. 144/2020, Articles 16, 49 and 50.
• The Maternity, Paternity and Parental Leave Act, No. 95/2000, Articles 11, 29 and 30.
  
• The Act on the Equal Status and Equal Rights of Women and Men, No. 96/2000.
• The Vessel Inspection Act, No. 47/2003, Article 4.
• The Air Traffic Act, No. 60/1998, Section VI.
• The Act on Temporary-Work Agencies, No. 139/2005, provided that the posted workers are in fact employees of a temporary-work agency.

Chain of Liability – Client Liabilty

Domestic companies who employ the services of foreign service providers in the building and construction industry may be liable for unpaid wages and other wage-related terms of employment to employees of foreign service providers.

Domestic companies who employ the services of temporary work agencies may also carry the same liability for unpaid wages and other wage-related terms of employment who are leased from a temporary work agency, regardless of profession or occupation.