Accrued rights

The VR and SA collective wage agreements state that the accrued rights of employees who resign must carry over if the employee is re-engaged by the same employer within one year. If the employee is re-engaged by the same employer after more than one year (but within three years), he is entitled to the same rights as he had before after one month.

An employee who has worked for 1 continuous year or more for the same employer shall enjoy his accrued rights again 3 months of work if he is re-engaged after a break in employment lasting longer than three years but less than 5 years.

Earned rights carried over between jobs

Employees earn rights according to how long they work for the same company. It varies however, how they carry over their rights between jobs.

  • An employee who has earned rights to 4-or 6-months wage payments during sick leave with one company and changes jobs has a right to wages during sickness for at least 2 months out of every 12 months from his new employer.
  • An employee who has worked for 10 years consecutively for the same employer has a 30-day holiday right. If he changes jobs, he regains this right after 3 years of work for the new employer, on the condition that his right has been verified upon hiring.

Earned rights due to work overseas

Foreign employees in Iceland as well as those Icelanders who have worked abroad shall transfer any accrued period of employment with respect to entitlements that are based on collective agreements and linked with period of employment in a particular industry, provided that the work abroad is considered comparable.

Employees must, when recruited, provide evidence for their period of employment with a certificate from their former employer or by equally verifiable means. If an employee is not able to submit a certificate that meets the requirements according to paragraphs 3 and 4, he may submit a new certificate within three months from the engagement. In that event, the accrued rights will become effective from the end of the current month. The employer shall confirm the receipt of the certificate.

The certificate from the former employer shall i.a. indicate the following:

  • Name and ID No. of the employee involved.
  • The name and identity of the company issuing the confirmation, including telephone number and name of the party responsible for its issuance.
  • A description of the work of the person involved.
  • When the person involved began working for the company in question, when he quit working and whether there was any break, and if so, when the break occurred in the employment of the person involved.
  • The certificate shall be in English or translated into Icelandic by a certified translator.