Temporary agency workers

Temporary-work agency employees working in Iceland are entitled to the same wages and other terms and conditons of employment had they had been employed directly to the user undertaking to perform the same duties.

In the previous chapters, it has been addressed that posted workers from foreign service companies are entitled to the same right to minimum wages and other wage components, over-time payments and paid holidays as everyone else working in Iceland. In addition, regulations on maximum work hours and minimum rest periods must be complied with.

According to Act No. 139/2005 on temporary-work agencies, temporary-work agency employees are entitled to the same wages and other benefits had they been employed directly to the user undertaking to perform the same duties. Therefore, temporary-agency employees shall be entitled to the full entitlements per Icelandic law and collective agreements while working in Iceland.

According to Act No. 139/2005, all temporary-work agencies are obliged to notify The Directorate of Labour no later than on the first day the operations commence for the first time.

Click here for further information about Temporary-work agencies and their obligations at The Directorate of Labour‘s website.