General Notice of termination is mutual. All notices of termination shall be given in writing, and shall be in the same language as the employee’s contract of employment.
Notice of termination
For both parties, the notice period for termination of employment shall be:
- 1 week during the first three months, which constitute a trial period;
- 1 month during the three months following on from the end of trial period.
- After 6 months’ employment, the notice period shall be 3 months.
Notice of termination shall always be given in writing. After the trial period, notice of termination shall furthermore take effect at the change of month.
In cases where an employee is made redundant after 10 years or more of continuous employment at the same company, the notice period shall be:
- 4 months if the employee has reached the age of 55,
- 5 months if he has reached the age of 60 and
- 6 months if he has reached the age of 63.
The employee, on the other hand may give 3 months’ notice of termination of employment.
These provisions on notice of termination shall not apply, however, if the employee demonstrates gross negligence in his work or if the employer commits an offence against the employee.
Procedure in redundancies
Interview concerning the reason for termination
Employees shall be entitled to have an interview to examine the termination of their employment and the reason for their dismissal (redundancy). Requests for interviews shall be presented within four days of receipt of the notice of termination, and the interview shall take place within four days of presentation of the request. Either immediately after the interview, or within the next four days, the employee may request that the reasons for termination be explained in writing. If the employer accedes to this request, then he shall comply with it within four days of the presentation of the request. If the employer does not accede to the employee‘s request for a written explanation, then the employee shall be entitled to another meeting with the employer within four days concerning the reasons for his dismissal, in the presence of his union shop steward or another representative of the union, if the employee so requests.
- Information about labour law and collective agreements in Iceland
- Intercultural Center
- Ministry of Social Affairs
- Multicultural and Information Center
- Directorate of Labour
- The Government Policy on the Integration of
- Immigrants (.pdf)
- Icelandic Confederation of Labour
- Your first steps in Iceland (.pdf)