The holiday period is from 1. May to 30. April each year and the summer holiday period is 2. May to 15. September.
An agreement between the worker and the employer determines when the holiday is taken and the wishes of the employees are to be complied with, as far as possible. The employer must notify the worker as soon as possible and no later than one month before the start of the holiday when the holiday is to begin. It is therefore a good idea for employees to request in good time when they want to go on holiday.
Employees are entitled to 20 consecutive days of holiday during the summer holiday period, which runs from 2. May to 15. September each year. If the employer requests that the employee take part of the holiday outside the period 2. May to 15. September, the part of the holiday taken outside the aforementioned period or a payment of 25% of the holiday pay shall be extended by 25%. On the other hand, if it is the employee himself/herself that wishes to take leave outside the summer holiday period, there will be no extension of the holiday taken.
When employees retire, all earned and unpaid holiday leave at the end of their employment must be settled.
Employees need to monitor their holiday rights, make immediate comments if any mistakes occur, e.g. if the holiday percentage is not correct.
Holiday rights according to the VR and SA agreement
The minimum holiday time is 24 week days (two holiday days are earned for every month worked during the holiday year). Holiday wages are 10.17% of total wages.
- After 5 years in the same line of work the employee must have 25 holiday days and holiday pay must be 10.64%.
- After 5 years in the same company the employee must have 27 holiday days and holiday pay must be 11.59%.
- After 10 years in the same company the employee must have 30 holiday days and holiday pay must be 13.04%.
Earned rights due to work in the same company are renewed after three years of work in a new company, provided that this has been confirmed. Granting holiday time in excess of 20 days during the winter is permitted unless otherwise agreed.
Leave instead of December- and holiday bonuses
The employee and the employer may reach an agreement to waive or reduce holiday and/or December bonuses in exchange for time off. Such leave must be granted in the form of whole or half days.
Example: An employee earns ISK 150,000 for full-time work. His daytime wages are therefore ISK 6,922 (150,000/21.67). The holiday bonus is ISK 15.900 in the year 2004. The employee and employer may agree that the employee gets paid two days off for the holiday bonus (ISK 6,922 x 2) in addition to a payment of ISK 2,056, which is the remainder of holiday pay.
Holiday rights according to the VR and FA agreement
Minimum holiday time must be 24 week days. Holiday pay must be 10.17% of all wages, whether it is daytime or overtime. When calculating holiday time, the divisor 21.67 must be used, Saturdays not included. The first five Saturdays do not count as holiday time. With regards to holiday pay, an employee who has a minimum of one month’s notice is considered a permanent employee.
- After 5 years in the same line of work the employee must have 25 holiday days and holiday pay must be 10.64%.
- After 5 years in the same company the employee must have 27 holiday days and holiday pay must be 11.59%.
- After 10 years in the same company the employee must have 30 holiday days and holiday pay must be 13.04%.
Earned rights due to work in the same company are renewed after three years of work in a new company, provided that this has been confirmed. Granting holiday time in excess of 20 days during the winter is permitted unless otherwise agreed.