2.1.1. Gegn hinu fasta mánaðarkaupi skal starfsfólk vinna 40 klst. á Copied!

2.1.2. Regular part-time work Copied!

2.1.3. Occasional work Copied!

2.2.1. Contractual overtime commences when the regular daytime work is finished Copied!

2.2.2. For work exceeding 40 hours per week, work on Saturdays, Sundays and contractually agreed days off Copied!

2.2.3. If work is performed during meal and coffee breaks within the day work period Copied!

2.3.1. Public holidays are considered: Copied!

2.3.2. Holidays in addition to public holidays are: Copied!

2.4.1. Daily rest time Copied!

2.4.2. Exceptions and the right to free leave Copied!

2.4.3. Weekly day off Copied!

2.4.4. The postponement of the weekly day off Copied!

2.4.5. Break Copied!

2.4.6. Regarding scope, rest periods, work breaks and more Copied!

2.5.1. Each started hour of the requested overtime is paid as half an hour Copied!

2.5.2. Staff shall report to work punctually Copied!

2.5.3. If employees need to change clothes, they shall do so on their own time Copied!

An employee who changes his/her working hours at the request of the employer or with his/her consent, from part-time to full-time, or from full-time to part-time, shall be entitled to all contractual and statutory rights in cases of illness and accidents, and to the payment of additional holiday days from the time he/she began work, based on seniority and in accordance with the altered working hours.

Further details concern employees in part-time positions according to the agreement between ASÍ and SA on part-time work and as applicable under the laws concerning employees in part-time work.

Staff must report legitimate absences with as much notice as possible.

It is permissible, by agreement between the employee and the employer, to accrue days off due to overtime, in such a way that overtime hours are accumulated and taken as time off during the regular working period, but the difference between regular working hours and overtime hour purchase is paid at the next regular payout or is added in total to the accumulation and time off during the regular working period. The monetary value of the overtime worked shall be taken as the basis. There shall be an agreement on the taking of time off. The right to time off, according to the above, which has not been used by May 1 each year or upon termination of employment, shall be paid out according to the monetary value of regular working hours on the payment day. There shall be an agreement on the taking of time off and it shall be organized so that there is as little disruption to operations as possible.

It is permissible to adopt two kinds of arrangements:

a) Overtime hours may be accumulated and the overtime premium paid out

Simple example: An employee's regular working hour purchase is ISK 1,000 and the company pays ISK 1,800 in overtime. The agreement is that the next eight overtime hours will be paid so that the overtime premium is paid out (ISK 1,800 – 1,000 = 800 ISK/hour) and the overtime hours will be accumulated. When the employee takes the leave, he retains his regular wages (ISK 1,000) for eight hours. Care must be taken regarding the amount of the overtime premium if a special additional payment applies only. If an employee has a special additional payment that only applies to regular hour purchases, then this must be taken into account.

b) Working hours may be accumulated as overtime and converted into regular working hours

Example: If an employee's overtime premium is 80%, the worked overtime hours may be converted into leave during the daytime work period such that one hour of overtime equals 1.8 hours of daytime work (4.44 hours of overtime equals 8 hours of daytime work). Care must be taken with the ratio if a special additional payment applies only to daytime work.

An agreement shall be made regarding time off and it shall be organized so that there is as little disruption to operations as possible.

It is permissible to assign night shifts where the employee is required to be reachable by phone and to handle outgoing calls. If nothing else is agreed in the employment contract, the following applies:

For each hour of on‑call duty where the on‑call employee is required to stay at home, he is paid the equivalent of 33% of a regular working hour. On public holidays and major celebrations according to §§ 2.3.1 and 2.3.2, the aforementioned rate becomes 50%.

For back duty where immediate response from the employee is not required but he is ready to work immediately and next to him, 16.5% of the daily work rate is paid for each hour on back duty. On public holidays and major celebrations according to §§ 2.3.1 and 2.3.2, the aforementioned rate becomes 25%.

For a call-out on a night shift, the employee shall be paid for the time worked, at least 4 hours, unless the day work begins within two hours of his arrival at work. Night shift payments and overtime payments never coincide.

If the home or mobile phone numbers of employees are provided in a telephone directory by the company, then consideration shall be given to the work that results from this in the determination of wages.

The collective agreement provides a right to free time, allowing rest down to 11 hours. The contracting parties agree that this rule also applies for rest down to 8 hours in exceptional cases. 2004

Employees in the tourism industry who wish to take unpaid leave for Christmas and New Year and have obtained the approval of the relevant manager shall receive daily wages in proportion to their work proportion for those contractual days off that fall on working days during the period in question. The employer's payment obligation is dependent on the employee having acquired the right to payment according to the provisions of paragraph 1.9.1 in the parties' collective agreement. 2019

3.1.1. It is permitted to have work on shifts every day of the week Copied!

3.1.2. A shift shall not be longer than 12 hours and shall not be shorter than 3 hours. Copied!

3.1.3. If an employee is hired for shift work, it shall be stated in his employment contract or by written agreement Copied!

3.1.4. Guard allowance is paid up to 100% of work Copied!

3.1.5. Shift schedule Copied!

3.2.1. In shift work, a surcharge is paid for the part of the 40 hours of work on average per week that falls outside the daytime period Copied!

3.2.2. Work on holidays Copied!

3.2.3. Surcharge on major holidays Copied!

3.2.4. Overtime purchase Copied!

3.2.5. An agreement has been made on a changed arrangement of overtime payments according to article 5.12 in the collective agreement Copied!

3.3.1. Rest breaks shall be equivalent to 5 minutes for each hour worked Copied!

3.4.1. Employees who work shift work earn 12 winter days off Copied!

3.4.2. If the workplace is closed on the aforementioned days or leave is granted Copied!

3.4.3. Summer holidays shall be granted in the period from October 1 to May 1 Copied!

3.4.4. It is permitted, by mutual agreement of the employer and the employee, for payment to be made in place of the mentioned days off Copied!

The shifts shall be arranged so that permanent staff who have scheduled shifts on weekdays and weekends shall have at least one third of each weekend off on average when looking at the upcoming three months.

4.1.1. Coffee breaks during daytime work shall be two, totaling 35 minutes, and shall be counted as working time. Copied!

4.1.2. Lunch break shall be half an hour during the period 11:00 – 14:00 and shall not be counted as working time. Copied!

Staff who work during the period 18:00 - 08:00 shall be given coffee breaks amounting to 5 minutes for each hour and they shall be taken at three-hour intervals, and count as working time. (These coffee breaks apply to people on overtime and shift work. Permanent staff take coffee breaks according to § 4.1.1.).

If it is not possible to provide a meal break pursuant to § 4.1, it shall be paid.

4.4.1. If overtime is worked until 19:00 or later, a ½ hour meal break shall be provided Copied!

4.4.2. If overtime work is performed at night, a ½ hour meal break shall be provided during the period 03:00 - 05:00 Copied!

4.4.3. It is prohibited to dismiss people from work when it comes to coffee or meal breaks during overtime Copied!

4.4.4. The duration of consumption breaks on weekends is handled in the same way as on working days. Copied!

4.5.1. The employer provides staff with meals during working hours free of charge Copied!

4.5.2. Work outside the workplace Copied!

4.5.3. Travel expenses Copied!

4.5.4. Trips to and from work at night Copied!

4.5.5. Use of one's own car for the benefit of the employer Copied!

4.5.6. If there is a dispute about what constitutes reasonable cost Copied!

4.5.7. Daily allowance payments on travel abroad Copied!

A company agreement (workplace agreement), within the meaning of this section, is an agreement between the company and the employees, all or a specific part, regarding the adaptation of the collective agreement to the needs of the workplace.

A company agreement, which is made on the basis of this section, is not a collective bargaining agreement, since the employers' association and trade unions are not parties to the agreement. Reference to the involvement of these parties in the agreement-making is made to section 5.5.

The purpose of the sectoral collective agreement is to strengthen cooperation between staff and management in the workplace with a view to creating conditions for improved employee benefits through increased productivity.

The goal is to develop collective agreements so that they benefit both parties for increased profit. Among other things, the aim is shorter working hours with the same or greater output. In doing so, it must always be assumed that the defined benefit is divided between employees and the company according to clear premises.

In general, the company participation applies to all employees covered by the collective agreements of the relevant association. However, it is permissible to make special agreements for individual specific workplaces, if there is an agreement about that.

Negotiations on the corporate share shall take place under the peace‑bound general collective agreements and shall be taken up by mutual agreement of both parties. Then it shall be stated in writing to which extent the agreement is intended to apply.

When negotiations have been concluded, the relevant trade unions and employer associations shall be notified.

Both parties, the employees and the defenders of the company, have the right to seek advice from the contracting parties. Either party, individually or jointly, may decide to call upon representatives of the contracting parties to the ministry during the contract formation, immediately after the negotiations have been concluded.

Union representatives shall be at the forefront for employees in negotiations with the company's management. The representative of the respective union has full authority to sit on the bargaining committee. The representative shall be allowed to hold an election for two to five additional members of the bargaining committee based on the number of employees, and they shall then jointly form the bargaining committee.

The trustee and elected representatives on the bargaining committee shall be guaranteed reasonable time to carry out preparation and contract drafting during working hours. Furthermore, they shall enjoy special protection in their work and it is prohibited to require them to perform their duties in the bargaining committee. Thus it is prohibited to dismiss them from their jobs because of their work in the bargaining committee.

In workplaces where confidential employees belong to two or more professional associations, they shall jointly represent the employees in cases where the company agreement affects their status. In such circumstances, care shall be taken that a representative for all relevant occupational groups participates in the discussions, even if the bargaining committee may be enlarged for those reasons.

Where confidential persons have not been appointed, the relevant employees' trade union may apply for the election of a conciliation committee.

Before a company agreement is concluded, managers must inform confidential staff and others on the bargaining committee about the company's position, future prospects, and personnel policy.

A union representative has the right to information about wage payments at the workplace he represents, to the extent necessary to enforce the provisions of the collective agreement.

During the term of the collective agreement, confidential parties shall be informed about the aforementioned matters and operational priorities twice a year. They shall keep this information confidential to the extent that it is not for public disclosure.

Information is only required to be provided to the extent necessary due to the provisions of the collective agreement.

An agreement made on the basis of this section shall be accessible to the employees of the relevant company. It is prohibited to inform outsiders about its content.

It is permissible, by mutual agreement within the company between employees and the employer, to adapt the contract provisions to the needs of the workplace with deviations regarding subsequent material issues, provided an agreement is reached on employee compensation.

a\) Flexible daily work period. It is permitted to agree that

The day‑time work period shall be from 07:00 -- 19:00.

> b\) Four-day work week. It is permitted to complete full weekly periods

working hours of day work on four active days when laws or others

agreements do not prevent it.

> c\) Shift work. It is permitted to schedule shift work with a minimum of two

weeks' notice. The shift period shall not be less than one month in practice.

> d\) Overtime surcharge in the regular work base. It is permitted to transfer part

overtime allowance in the regular wage base.

> e\) Leave for overtime. It is permitted to agree to collect together

overtime hours and take leave in lieu for an equal number of hours

on working days outside the company's peak hours. Overtime hours are incurred

for collection and to be paid later during regular hours, but the overtime union is

paid out.

> f ) Rest break. It is permitted to agree on a different arrangement for rest breaks than

articles in the main collective agreement.

> g\) Vacation. It is permitted to allocate part of the vacation to reduce

operations or closure on certain days outside the company's regular hours.

> h\) Performance‑incentive wage system. It is permitted to develop a performance‑incentive

pay system without formal work investigations where it appears appropriate in assessment

both parties.

> i\) Transfer of Thursday holidays. It is permitted to agree on it

workplace to contractual leave due to a promotion day and

the first summer day, which both are always on Thursdays, shall be transferred to

another working day, e.g., Friday or Monday, or related to another leave

employees.

Deviations from the general rules of the collective agreement beyond the aforementioned limits are only permitted if they have the approval of the relevant trade union and the employers' association.

If an agreement on adapting the provisions of the collective agreement to the needs of the company or other deviations from the work schedule, which an agreement has been made about, is reached, an agreement must also be made regarding the employees' share in the benefits that the company gains from the changes.

Employee benefit may be reflected in a reduction of working hours without a corresponding reduction in earnings, payment of a fixed amount per month or quarter, a seniority allowance, a percentage allowance on wages, or a fixed krona amount for time purchase or in another way, depending on the case. However, the agreement must clearly state what each company's benefit consists of as well as compensation to employees. Either way, it is a deviation from the collective bargaining agreement and may be terminated upon dismissal according to § 5.9.

Agreement on corporate participation shall be written and shall be binding on all those to whom the agreement is intended to apply in a secret ballot in which the relevant employee bargaining committee represents. The agreement is deemed approved if it receives the support of a majority of the votes cast. The relevant trade union shall ensure that any deviations and compensation for them, assessed comprehensively, meet the provisions of law and collective agreements regarding minimum standards. If no notice of otherwise has been given within four weeks, the agreement shall be considered approved by both parties.

It is permissible for the collective agreement to be valid temporarily, subject to experience, for up to six months and then to be finally withdrawn from its provisions in light of that experience. Otherwise, the term of validity shall be indefinite. After a year, either party may initiate a review. No later than two months after the entry into force of the main collective agreement, the parties shall commence discussions on the review and renewal of the agreement concerning the collective part. If an agreement on changes is not reached within two months, either party may dissolve the collective agreement with six months' notice, effective at the turn of the month. At that time, both parties' joint changes and the employees' share in the benefit shall cease. For a termination to be binding, it must obtain the support of the majority of the affected employees in a similar vote, and this was maintained at the time the agreement entered into force. If the employer terminates the collective part of the agreement, wage increases related to it shall only be applied retroactively to the extent that they correspond to the cost increase resulting from the adoption of the previous agreement provisions.

Changes to the terms of employment that may arise from the collective agreement are binding for all concerned employees unless they have formally objected to the agreement with the company's management and the employees' bargaining committee before the wage payment was made.

The provisions of the company agreement apply equally to employees who are in positions when the agreement is approved pursuant to the provisions of this section, as well as to those who are later hired, provided that its subject matter has been presented to them at recruitment.

Based on a majority agreement in the vote, employees have the right to conduct negotiations on work‑time allocation of 36 effective working hours per week on average, alongside the elimination of coffee breaks during daytime working hours according to section 3 of the collective agreement. Company managers may also request negotiations.

In the negotiations, proposals will be made regarding the arrangement of breaks with the aim of achieving mutual benefit and improving the utilization of working time where this will be addressed.

If formal coffee breaks are eliminated, the benefit from improved utilization of working time and increased productivity shared between employees and the employer, the employees' share is reflected in an additional shortening of active working time:

Additional reduction of active working time:

If an agreement is reached on the elimination of coffee breaks, the regular working time will be 36 hours per week, without reduction of monthly wages. Arrangements for shortening the regular working time can be implemented in many ways, e.g.:

1. Flexible rest breaks from work are taken, one or more. 2. Lunch break extended. 3. Each workday is shortened, the total number of workdays is reduced or one > day of the week is shortened. 4. The reduction is accumulated into full or half days off. 5. Mixed method.

Representatives of the contracting parties have full participation in the collective bargaining negotiations pursuant to this article.

The validity and voting on the agreement is subject to article 5.9.

Based on a majority agreement in the vote, employees have the right to conduct negotiations regarding changes to on-call duty payments pursuant to article 3.2.1 of the collective agreement. Company managers may also request negotiations.

In place of the on-call allowance according to § 3.2.1. in the collective agreement, it is paid:

a) Equalisation shift allowance on all worked time per 24‑hour period up to 100% > work per month instead of allowance according to § 3.2.1. in the collective agreement. > The equalisation shift allowance is based on the average shift‑allowance payments > in the company during the last 12 months as of the month‑end. If special > circumstances exist that indicate that another time reference should be used, e.g., due to changes in regular opening hours, it shall be done.

The average shift allowance is determined by taking the total number of working hours on

the period for all staff who work under the collective agreement on

different overtime periods.

b) Daytime allowance on top of all worked hours during the period from 8:00 --> 17:00 on working days but in return another shift allowance as > specified in clause 3.2.1 of the collective agreement shall be paid for work outside > the daytime period as agreed by the parties. In calculating the shift > allowance it is assumed that the average shift allowance will remain > unchanged from what it has been during the last 12 months in the > company, with respect to the month-end unless special > circumstances indicate that another time reference should be used.

Example:\

The average night shift surcharge is 24% in a company where the 24:00 period is not open

-- 08:00 approx. that 40% of total working hours of staff are worked on

daytime work period, 25% during the period 17:00-24:00 on working days and 35%

on weekends. In such a case, an election could be held there

such options could be, for example:

> i. a surcharge of 6.25% is paid for the period 8:00 -- 17:00 on working days but

30% surcharge for the period from 17:00 – 24:00 on working days but 40% on

Saturdays from 8:00 -- 24:00.

> ii\. a surcharge of 13.5% would be paid for the period 8:00 -- 17:00 on working days

and 31% surcharge during the period from 17:00 -- 24:00 on working days and ..

Saturdays from 8:00 -- 24:00.

> iii\. the pay would be a mid‑shift allowance of 24% on top of all paid hours.

> It is permitted to vote by any method, which remains unchanged

average guard allowance.

Should the assumptions in the main points underlying the agreement change, e.g., the regular opening hours of the company and the monitoring permanently from what was already decided in the security contract, either party may request that the security contract be revised due to the changed assumptions, and the amendment shall take effect from the next month‑turn after a written request for such is submitted.

Forsend that corporate participation takes effect is that representatives of the contracting parties are offered full access to collective bargaining negotiations, are notified of the discussions, and are given the opportunity to review the data underlying the calculations.

The union shall confirm in writing that the proposal is based on correct calculations and meets the requirements according to options a or b above, and shall respond to a request for confirmation within 4 weeks from the time it has been demonstrably received.

If written confirmation is received or the union does not respond within the aforementioned time limits, an election may be held. If the union provides confirmation, it must be accompanied by substantive justification.

If there is a dispute regarding the above, the matter shall be referred to the SA and ASÍ, which shall reach a decision within four weeks.

A copy of the agreement's outcome shall be sent to the representatives of the labor market.

Otherwise, it concerns the entry into force and voting on the agreement according to article 5.9.

If no agreement is reached at the workplace on the reduction of working hours according to article 5.11, both employees and the employer are allowed to refer the dispute to the contracting parties, the relevant trade union and the Confederation of Icelandic Industries.

If a dispute arises within the company regarding the interpretation or implementation of the collective agreement and it cannot be resolved through discussions between the parties at the workplace, employees have the right to seek assistance from the relevant trade union or refer the matter for resolution.

If an agreement cannot be reached on the assessment of the effects of termination according to the final clause paragraph 2 of article 5.9, either party may refer it to the decision of an independent party as agreed by the parties. 65% of the costs are paid by the company and 35% by the employees.

Minimum leave shall be 24 working days. Holiday pay shall be 10.17% of the total purchase, whether for day work or overtime.

Effective from 1 May 2024 (vacation that is taken in the vacation year that begins 1 May 2025). An employee who has reached the age of 22 and has been employed for 6 months in the same company shall be entitled to 25 days of vacation and vacation pay of at least 10.64%.

Employees who have worked 5 years at the same company shall be entitled to vacation of 25 working days and vacation pay of 10.64%.

Effective from 1 May 2024 (vacation that is taken in the vacation year starting 1 May 2025). An employee who has worked for 5 years in the same company is entitled to vacation of 26 working days and vacation pay of 11.11%.

Effective from 1 May 2025 (vacation that is taken in the holiday year starting 1 May 2026). An employee who has worked for 5 years in the same company is entitled to vacation of 28 working days and holiday pay of 12.07%.

In the same manner, employees who have worked 10 years at the same company acquire a vacation entitlement of 30 days and vacation pay of 13.04%. Vacation entitlement is calculated from the beginning of the next vacation year after the aforementioned period of service is reached.

An employee who has been granted increased vacation entitlement because of work in the same company regains it anew after three years with a new employer, as the right has been established.

Summer vacation is four weeks, 20 working days, which are taken during the period 2 May - 30 September.

It is permitted to grant leave of more than 20 days outside the defined summer vacation period 2 May to 30 September unless otherwise agreed. If an employee wishes to take leave outside the aforementioned period, it must be accommodated as far as possible due to the work.

Those who, at the employer's request, do not receive 20 vacation days during the summer vacation period are entitled to a 25% surcharge for the missing 20 days.

Trade unions are allowed to negotiate the implementation with individual employers, that vacation pay shall be paid equally into special vacation accounts of employees in a bank or savings bank. In such an agreement it must be ensured that the party taking charge of the administration of vacation pay pays the employee the accrued vacation pay, i.e., principal and interest, at the start of the vacation. It is required to submit to the Ministry of Social Affairs a copy of such an agreement and report its termination.

If an employee becomes ill while on holiday within the country, in a country within the EEA area, Switzerland, the United States or Canada, and it is serious enough that they cannot enjoy the holiday, they must notify the employer on the first day, e.g., by telephone, e‑mail or another verifiable method, unless force majeure circumstances prevent it, and then as soon as the situation improves.

The employee shall fulfill the reporting obligation if the illness lasts longer than three days and shall notify the employer within that period which doctor examined him or will issue a medical certificate; he is entitled to compensatory leave equal to the time the illness was demonstrably present. Under the aforementioned reasons, the employee shall always provide proof of his illness with a medical certificate. The employer has the right to have a doctor visit an employee who is ill while on leave. Compensatory leave shall, as far as possible, be granted at the time the employee requests it during the period 2 May to 15 September, unless otherwise specified. The same rules as above apply to accidents occurring during leave.

6.5.1. Leave shall be otherwise according to the provisions of the leave law at any given time. Copied!

6.5.2. Upon the death of an employee, his accrued leave shall be paid to his death benefit Copied!

6.5.3. It is prohibited, according to article 7 of the Leave Act No. 30/1987, to pay leave together with wages. Copied!

When hiring staff, members of the relevant trade union shall be responsible for work with the employer, provided that all staff have free access to the union. However, members of the relevant trade union commit themselves not to take up employment at restaurants and lodging establishments other than companies within the Association's restaurant and lodging houses, if they lack such staff, provided that the companies have notified the relevant trade union about it.

In workplaces, the safety equipment that the State Labour Inspection deems necessary due to the nature of the work, or is specified in the collective agreement, shall be available for use by staff, see the laws on equipment and health practices.

Employees are required to use the safety equipment that is provided for in collective agreements and regulations, and foremen and safety representatives must ensure that it is used.

8.3.1. If staff do not use safety equipment that is provided at the workplace Copied!

8.3.2. Breach of safety regulations that put the lives and limbs of employees at risk Copied!

8.3.3. If a dispute arises concerning this contractual provision, it is permitted to refer the matter to the standing committees ASÍ and VSÍ. Copied!

A locked cupboard shall be provided for each employee, if possible. If not, a locked drawer shall be provided where they can store valuables.

Restrictions on work and working hours for minors are set out in Section X of the Act on Equipment, Health Practices and Safety in Workplaces No. 46/1980 and the Regulation on Child and Youth Labor No. 426/1999.

When it is necessary to convey important information to employees, such as safety matters, work organization, changes at the workplace or issues concerning individual employees, the employer shall endeavour to provide interpretation for those employees who need it.

8.7.1 Employees shall always be allowed to submit suggestions and complaints about crimes or other reprehensible conduct related to equipment and safety at the workplace that may affect the health and safety of the staff. 8.7.2 In workplaces where a safety officer or a confidant has been elected, he/she shall act as an intermediary to convey the suggestions and complaints of co‑workers regarding safety and equipment at the workplace to the employer. Where there is neither a confidant nor a safety officer appointed at the workplace, an employee may bring his/her suggestions to the next supervisor. 8.7.3 Following an employee’s suggestion, the supervisor shall verify whether the suggestion is justified as soon as possible. If no action is taken, the employee may turn to the executive director or the human‑resources manager (if present) with his/her suggestions. 8.7.4 If it appears that the employee’s suggestions are justified and made in good faith, the supervisor shall respond as quickly as possible and make the necessary improvements, taking into account good work practices and the obligations that rest on the employer under occupational health and safety legislation. The employee may request information on the progress of the matter. 8.7.5 The employer shall ensure that the employee is not penalised for having made a justified suggestion concerning a breach of occupational health and safety laws or other reprehensible conduct related to equipment and safety at the workplace that may affect the health and safety of the staff.

The Confederation of Business will issue guidelines on the procedure for staff suggestions regarding safety or equipment at the workplace. This refers to violations of occupational safety laws or other reprehensible conduct related to work practices or equipment at the workplace that may affect the health and safety of staff. The guidelines aim to promote a good workplace and reduce staff concerns about making such suggestions.

The guidelines are written and specify the receipt, handling and processing of suggestions. It is recommended that companies follow them and make them accessible to all staff.

These instructions must be completed and presented no later than 1 June 2024.

Staff shall, every 12-month period, retain wages in accident and sickness funds as specified here:

9.1.1. In the first year of employment with the same employer, two days' worth of substitute pay shall be paid for each month worked. Copied!

9.1.2. After one year of continuous service with the same employer, one month of substitute pay is granted. Copied!

9.1.3. After two years of continuous service with the same employer, one month shall be paid with substitute wages and one month with day work wages. Copied!

9.1.4. After three years of continuous employment with the same employer, one month shall be paid with substitute wages and two months with day work wages. Copied!

9.1.5. After five years of continuous service with the same employer, one month is paid with substitute pay, one month with full daily wage Copied!

9.1.6. An employee who acquires a 4‑month sick‑leave entitlement after five years of continuous employment with the same employer and moves within 12 months to another employer Copied!

9.1.7. The sickness right is a full right for each 12‑month period regardless of the type of illness. Copied!

9.2.1. The employee shall be covered in the event of an accident at work or on the direct route to or from work, and likewise if the employee falls ill due to an occupational disease Copied!

9.2.2. In the event of a work accident, the employer bears the cost of transporting the injured person to home or hospital Copied!

9.3.1. Substitute pay is based on the salary the employee would have demonstrably earned had he not been prevented from working due to illness or accident Copied!

9.3.2. Full‑time day work purchases are fixed wages for day work plus on‑call allowance, bonuses and other performance‑incentive or comparable allowance payments Copied!

9.3.3. Daytime wages are fixed wages based on day work (excluding bonuses and any kind of overtime payments) Copied!

9.4.1. Payments of wages in cases of illness and accidents shall be made in the same manner and at the same time as other wage payments Copied!

9.4.2. In case of a dispute regarding the employer's bookkeeping obligation, cf. §9.2. Copied!

9.4.3. Medical certificate Copied!

9.5.1. During the first 6 months of employment with the employer, a parent is allowed to take two days off for each month worked to care for sick children under the age of 13 Copied!

9.5.2. The employee has the right to leave from work when there are force majeure circumstances and urgent family reasons Copied!

Maternity and parental leave is governed by law no. 144/2020 on the same subject.

Mothers with children are entitled to necessary leave from work for maternity examinations without deduction from fixed wages, provided such examinations must take place during working hours.

9.7.1. Scope Copied!

9.7.2. Commencement and termination of insurance Copied!

9.7.3. Index and index linking of compensation Copied!

9.7.4. Death benefits Copied!

9.7.5. Benefits due to permanent disability Copied!

9.7.6. Benefits due to temporary disability Copied!

9.7.7. Insurance liability Copied!

The parties agree that, in addition to illness and accidents, the sickness entitlement under this agreement shall be active only if the employee undergoes the necessary and required medical treatment to reduce or eliminate the consequences of a disease that is foreseeable to lead to incapacity.

The above definition does not entail a change to the concept of occupational disease under labor law as it has been interpreted by the courts. However, the parties agree that actions the employee must undertake to remedy the consequences of a workplace accident will also activate the sickness benefit under this agreement.

The parties to the agreement shall refer this to the Minister of Health so that he advocates for a change in the regulations on medical certificates. A requirement shall be made for special medical certificates when long‑term absences are involved. If an employee has been unable to work due to illness or injury for four consecutive weeks, the medical certificate shall state whether occupational rehabilitation is necessary to achieve or accelerate recovery. 2008

10.1.1. Staff shall always be clean and tidy when going out Copied!

10.1.2. General work clothing Copied!

10.1.3. Maintenance and cleaning Copied!

10.1.4. Animal caretakers/Night guards Copied!

10.2.1. The employee shall be proven liable for damage to ordinary necessary clothing and we shall in the performance of our work Copied!

10.2.2. The same applies if an employee suffers clothing damage caused by chemical substances Copied!

10.2.3. If employees suffer damage (loss of protective equipment, etc.) caused by a fire at the workplace Copied!

Employers pay into the health insurance fund of the respective union which contributes 1% of all employees' wages to cover illness and medical expenses.

11.2.1. Employers shall pay an amount equal to 0.25% of the same sum into the holiday fund of the respective union. Copied!

11.2.2. Trade unions are permitted to negotiate with pension fund boards regarding the collection of sickness and vacation fund fees alongside pension fund contributions. Copied!

Employers pay 0.3% into the relevant vocational training fund; Starfsafls -- vocational training Federation of Business and the Fishermen's Association.

Otherwise, it refers to the agreement on vocational training matters.

11.4.1. Agreement of the bargaining committee of the Icelandic Confederation of Labour and the employers' association on pension funds dated 19 May 1969 Copied!

11.4.2. The employee pays a 4% contribution to the pension fund from all wages and the employer does so at 11.5%. Copied!

11.4.3. Additional contributions to pension savings Copied!

11.5.1. Employers pay a fee to Virk – the Occupational Rehabilitation Fund, cf. law no. 60/2012. Copied!

Employers undertake the collection of membership fees from primary and auxiliary members of the relevant trade union in accordance with the union's rules, whether it concerns a percentage of wages or a fixed fee. These fees shall be paid monthly to the union, and the deadline is the last working day of the following month. It is permissible to pay union fees together with pension fund contributions.

During the first two weeks of employment there is no notice period.

After two weeks of continuous work with the same employer:\

12 calendar days.

> After 3 months continuously with the same employer:\

1 month, i.e., month-end.

> After 2 years of continuous employment with the same employer:\

2 months, i.e., month turn

> After 3 years continuously with the same employer:\

3 months with month turn.

Notice period is mutual.

The provision of paragraph 13.1 fully replaces the provision of article 1 of law no. 19/1979 on notice periods.

13.2.1. General provisions on termination Copied!

The notice period is mutual between the parties. All notices of termination must be in writing and made in the same language as the employee's employment contract.

13.2.2. Interview on reasons for termination Copied!

The employee is entitled to an interview about the termination of their employment and the reasons for dismissal. A request for an interview must be submitted within four weeks of the termination being received, and the interview must take place within four weeks thereafter.

The employee may request this when the interview is completed or within four weeks that the reasons for termination are clarified in writing. If the employer complies with this request, it shall be done within four weeks from then.

If the employer does not comply with the employee's request for written explanations about the employee, within four weeks, the employee has the right to another meeting with the employer regarding the reasons for termination, in the presence of his/her trustee or another representative of his/her union, if the employee wishes.

13.2.3. Limitation of termination authority according to the law Copied!

In dismissals, the provisions of the law that limit the employer's unrestricted right to dismiss must be observed, including provisions concerning confidential staff and security personnel, mothers with children and parents on maternity leave, employees who have reported maternity and parental leave, and employees who bear family responsibilities.

It must also be observed the provisions of §4 of law no. 80/1938 concerning trade unions and labor disputes, the law on equal status and equal rights of men and women, the law on part‑time employees, the law on the legal status of employees in the event of a transfer to companies, and the consultative obligation of the law on collective agreements.

When an employee enjoys protection against dismissal according to the law, the employer must provide a written justification for the reasons behind the termination.

13.2.4. Penalties Copied!

Violations of the provisions of this section may be liable to compensation pursuant to the general rules of tort law.

13.2.5. Transfer to a job with a lower pay grade Copied!

Be an employee who has been hired for a certain job, transferred to a new job, which is paid at a lower wage rate than the one for which he was hired, shall retain the previous wage rate as his notice period dictates, unless the transfer has been announced to him with that notice. This does not apply to jobs that are paid with different rates and people transferred between jobs according to workplace customs and the nature of the work.

If an employee is dismissed, after at least 10 years of continuous service with the same company, the notice period is four months if the employee is 55 years old, five months if he/she is 60 years old, and six months when he/she is 63 years old. However, the employee may resign from his/her position with three months' notice.

With accrued rights according to article 13.4, it refers to all rights related to the period of employment with the same employer under this collective agreement, including vacation, sick leave and notice period.

13.4.1. Accrued rights upon re-employment Copied!

Earned employee rights shall be retained upon re-employment within one year. Likewise, earned rights shall take effect again after one month of work if re-employment occurs after more than one year, but within three years.

13.4.2. Reappointment after a work break Copied!

An employee who has worked continuously for one year or longer with the same employer shall, in the same manner, enjoy the accrued rights again after three months of work, if re-employment occurs after more than three years of service break but still within five years.

Accrued rights also remain in the event of a transfer to companies according to the law on the legal status of employees in the event of a transfer to companies.

13.4.3. Acquired rights due to work abroad Copied!

Foreign employees in this country as well as Icelanders who have worked abroad transfer accrued service time towards the rights under collective agreements that are linked to seniority in the profession, as the foreign position will be considered comparable.

Employees shall, upon hiring, submit proof of their working hours with a certificate from the former employer or by another equally verifiable method. If an employee cannot, at the time of hiring, provide a certificate that meets the conditions according to sections 3 and 4, they are allowed to submit a new certificate within three months from the hiring date. Then the accrued rights shall take effect from the next month-end thereafter. The employer shall confirm receipt of the certificate.

In the testimony of the former employer, among other things, shall include:

- Name and personal identification of the respective employee.

> \- Name and identification of the company issuing the certification, together with

phone number, email address and the name of the person responsible for its issuance.

> \- Description of the job that the person performed.

> -When the individual started work at the respective company, when he

Ended employment and whether dismissal, and if so when, the person was employed.

The certificate must be in English or translated into Icelandic by a certified document translator.

According to the Act on Maternity and Parental Leave No. 144/2020, maternity leave shall be counted as working time when assessing employment‑related rights, such as the right to vacation and extended vacation under collective agreements, seniority increments, sick leave and notice period. The same applies if a woman must, for safety reasons, stop working during pregnancy, see the regulation on measures to increase safety and health in workplaces for women who are pregnant, have recently given birth, or are nursing .

Maternity leave is counted as working time when calculating holiday entitlement, i.e., entitlement to time off but not holiday pay.

The contracting parties agree that it is desirable that dismissals be directed only at those employees who are intended to be laid off, and not to all employees or groups of employees. In view of this, the parties have made the following agreement with each other:

13.6.1. Scope Copied!

13.6.2. Consultation Copied!

13.6.3. Implementation of group orders Copied!

Employees are allowed to elect one confidant at each workplace where there are 5 to 50 employees, and two confidants where there are more than 50 employees. In this context, a workplace is considered each company where a group of people work together. After the election is completed, the relevant trade union appoints the confidants. If an election does not take place, the confidants shall be appointed by the respective trade union.

It is permitted to elect three trustees within a company if the number of members is greater than 120 at the same workplace.

Where a company's workplaces are more than one, or staff generally report to work at locations other than the headquarters of the relevant employer, the trustee shall be given leeway to perform his/her trustee duties at all workplaces, or alternatively choose more trustees to perform those duties.

Union representatives shall not be elected or appointed for a period longer than two years in principle.

Confidential staff at workplaces shall, in consultation with the manager, be allowed to protect, as needed, time for tasks that may be concealed from them by the staff at the respective workplace and/or the relevant trade union due to their duties as confidential staff, and their wages shall not be reduced because of this.

If the work of a confidential employee is of such a nature that it is impossible for him to perform his confidential duties during regular working hours, at the request of the confidential employee an agreement shall be made between him and the employer regarding the minimum amount of time that the confidential employee may have at his disposal to perform these duties. In the agreement, consideration shall be given to the number of employees for whom the confidential employee acts as a representative, the general scope of confidential work, the distribution of workplaces, the shift schedule, and any other relevant matters.

A union trustee or representative shall be permitted, in connection with a dispute, to review data and work reports that pertain to the dispute. Such information shall be treated as confidential.

A union representative at a workplace shall have access to a locked storage room and access to a telephone in consultation with the foreman.

The trustee at each company shall be allowed to call a meeting with staff twice a year at the workplace during working hours. The meetings shall begin one hour before the end of the working day, as soon as possible. The meetings shall be called in consultation with the relevant trade union and the company's management with three days' notice, unless the agenda is very urgent and directly related to problems at the workplace. In that case, one day's notice is sufficient. The wages of the staff shall not be reduced because of the first hour of the meeting time.

In workplaces where a union representative has not been appointed, a representative of the trade union is allowed to call a meeting with the staff at the workplace with the consent of the company's management. Efforts shall be made to hold the meeting at a time that does not disrupt the company's operations. Therefore, the manager's approval for the meeting location and time must be obtained before the meeting is called.

A union representative shall bring staff complaints to the manager or other company executives before seeking other parties.

Union representatives at the workplace shall be given the opportunity to attend courses aimed at making them more competent in their work. Each union representative has the right to attend one or more courses organized by the trade unions, intended to better enable union representatives to cope with their duties, for a total of one week per year. Those who attend the courses shall hold day shifts and on‑call duty for up to one week per year. In companies where more than 15 employees work, union representatives shall hold day shifts and on‑call duty for up to two weeks in the first year. This applies to one union representative per year in each company with 5‑50 employees, and two union representatives where there are more than 50 employees.

If a confidentiality officer training course is organized such that the absence of the confidentiality officer from work is not more than one day per week, confidentiality officers keep day shifts and guard duty for up to ten working days per year.

If a union representative attends a full-day course, he or she will not be required to do work that day.

When collective bargaining negotiations are ongoing, members of the SGS affiliate union, who have been elected to negotiation committees, are allowed to attend their meetings during working hours. The same applies to representatives at the ASÍ/SGS annual meeting and representatives on the joint committees of ASÍ/SGS and SA. It must be ensured that employees' absences have as little disruptive effect as possible on the operations of the companies they work for, and the employee must consult with their supervisor about absences with as much notice as practicable. Generally, it should be aimed that no more than 1-2 employees from each company are absent. It is not required to pay for the hours that an employee is absent.

This agreement on union representatives in workplaces does not affect the rights of those unions that already have further rights in their agreements than those set out here regarding union representatives in workplaces.

Í lögum nr. 151/2006 um upplýsingar og samráð í fyrirtækjum er kveðið á um upplýsinga- og samráðsskyldu atvinnurekanda við fulltrúa starfsmanna. Samráðsskyldan á við þar sem starfa að jafnaði a.m.k. 50 starfsmenn, sbr. nánar samkomulag SA og ASÍ um upplýsingar og samráð í fyrirtækjum. Lögin gera ráð fyrir að trúnaðarmaður sé fulltrúi starfsmanna.

15.1.1. Employees obtain training at the employer's request Copied!

15.1.2. Employees may accrue up to 4 days of work hours per year Copied!

15.1.3. Contract parties shall appoint three men each to the committee Copied!

16.1.1. Dispute arises between the contracting parties Copied!

The main objective of this agreement is to promote a reduction in inflation and a decrease in interest rates, which is a major concern for households and businesses. Additionally, the aim of the agreement is to increase the purchasing power of wage earners, create predictability in the economy, reduce inflation expectations, and strengthen the competitiveness of the Icelandic business sector. This agreement also provides for productivity increases for all wage earners, based on measured productivity, and a real‑wage increase in collective wage agreements.

To strengthen the premises and objectives of the collective agreements, a special wage and premises committee will be appointed when needed. The committee shall be composed of four representatives appointed by SA and four appointed by the bargaining committees of their member unions of ASÍ, who stand as joint bargaining representatives.

The committee's task is to monitor the development of those factors in the economy that may affect the objectives of the agreement, to provide a formal assessment of the premises of the collective bargaining agreement and, where appropriate, negotiate responses to any breach of the premises that underpin the agreement and contribute to ensuring that it retains its value. A formal assessment of the agreement's premises will take place in September 2025 and September 2026.

In September 2025, a position shall be taken on the following assumptions:

a\) Forsend is that the 12‑month inflation in August 2025 is not measured above 4.95%. Forsend this price‑level condition is still considered met if inflation over the 6‑month period from March to August 2025 is 4.7% or lower on an annualised basis.

b\) Forsend is that legislative changes, which are named and appear in the government's declaration of 7 March 2024, have come into force.

In September 2026, a position shall be taken on the following premises:

Forsend is that the 12‑month inflation in August 2026 does not exceed 4.7%. Forsend this price level is considered to have been met if inflation over the 6‑month period from March to August 2026 is 4.4% or lower on an annualised basis.

Responses to a premise deficiency

The Wage and Premises Committee shall, in its decision on a response to deviations from the collective bargaining objectives, consider the development of economic indicators during the bargaining period. The response should have a positive impact on the progress of the objectives set by the parties to the agreement regarding lower inflation, inflation expectations, reduction of policy interest rates, improved welfare of wage earners, and enhanced competitiveness of the Icelandic economy. The committee shall take a holistic view of the state of economic affairs.

The committee may decide that instead of a wage increase according to this agreement, another equally price‑equivalent response shall be provided that better suits the circumstances that arise each time.

If no agreement is reached on the response to a breach of conditions, the contracting party who does not want the agreement to remain in force shall notify as follows:

Due to a review in September 2025. Before 16:00 on 8 October 2025 and the agreement will then expire on 31 October 2025.

Due to a review in September 2026. Before 16:00 on 8 October 2026, the agreement will then cease to be valid on 31 October 2026.

While the collective agreements are in force, the salary and premises committee shall, in March 2025, 2026 and 2027, decide on a special wage increase, showing that the wage index from Statistics Iceland for the general labour market indicates that wages have risen beyond the increase of the lowest wages. The relative increase of that index shall be compared with the relative increase of the 4th‑level collective agreements SGS/Efling for the same period. The wage increase is calculated as a full percentage of the increase of the aforementioned wages, and all minimum‑wage agreements of the parties shall be raised by that percentage from and including 1 April each year.

a\) In March 2025, the increase in the purchase price index and the development of the wage index for the period November 2023 - November 2024 shall be considered.

b\) In March 2026, we shall look to an increase in the purchase price and the development of the wage index for the period November 2024 – November 2025.

c) In March 2027, the increase in the purchase price and the development of the wage index for the period November 2025 – November 2026 shall be taken into account.

Compensation, together with payment of production increases and purchase price increases under this collective agreement, shall be taken by the minimum purchase price collective agreements as the higher increase each time.

If productivity increases by more than 2% in the years 2025 and 2026, wage earners shall receive a share of that value increase in the form of a special productivity bonus, provided certain conditions are met.

The production increase and its payment are detailed in the annex to this agreement.

This agreement is valid from 1 February 2024 to 1 February 2028 and will then expire without special termination.

Reykjavík, 7 March 2024

The parties agree to establish a group (two representatives from SA and two from Efling) that meets at least four times a year to follow up on the implementation plan and assess the status of the project on a regular basis in cooperation with the Business Education Center.

Implementation plan

The parties agree to expand job profiles in consultation with the Business Education Center, where competency standards for positions are identified through competency analysis, assessment lists are developed for jobs, and subsequently competence is confirmed by issuing Professional Certificates.

The parties agree on the preparation of promotional material and guidelines for companies and staff regarding the new competency salary system. The parties are working together on the preparation of the promotional material in cooperation with the Business Education Center. 2024

If the employee's terms, assessed comprehensively, are lower than the minimum terms according to the collective agreement, his request for correction, whether it is made during employment or within 6 months after termination, shall not be dismissed as void but shall be processed according to general rules. 2024

During the term of the collective agreement, a wage increase based on productivity development may be paid. If productivity exceeds the limits in the following table during the agreement period, a so‑called productivity increase will occur, provided certain conditions are met.

The first review point takes place in the year 2025 that has passed. The initial value of the productivity index is 100 in the year 2023.

Growth in productivity consists of both increased labor productivity and technological development based on investment. It is important that there continues to be a financial incentive for investment. Therefore, 70% of the productivity increase will go to the wage earners.

----------------------------------------------------------------------- Productivity growth\ Productivity increase 2025 and 2026 -------------------------------------------- -------------------------- \> 2,0% 0,35% \> 2,5% 0,70% \> 3,0% 1,05%-----------------------------------------------------------------------

The wages and premises committee determines that a productivity increase will be a reason for its payment. The productivity increase is a percentage (%) and is added to wages in the same way as general percentage increases made by collective agreements. If unforeseen circumstances arise that have a negative impact on the business environment, the wages and premises committee may need to take a position on whether or how the increase will be applied.

A more detailed technical implementation with examples is part of the collective agreement.

In line with the increased number of foreign employees in the Icelandic labour market, the parties to the agreement shall cooperate to define the need for interpreter services and, where appropriate, develop guidelines for companies on the matter. 2019

The contracting parties agree that employees who perform confidential duties for their trade union with a seat on the board, collective bargaining committee or confidential council, and who are in communication with their employer because of those confidential duties, shall not be required to pay for those confidential duties pursuant to Section 4 of the Act on Trade Unions and Labor Disputes No. 80/1938. 2019

When an employer provides an employee with housing for a fee in connection with recruitment, the provisions of the Housing Tenancy Act No. 36/1994 concerning the form and content of lease agreements apply.

A lease agreement in accordance with the tenancy law must be in writing and meet the requirements of Chapter II of the tenancy law, including the amount of rent, whether the agreement is temporary or permanent, and which services for the premises are included in the rent.

In doing so, the aim shall be that employees do not pay higher rent than is generally the case and that the rent amount is fair and reasonable for both parties. In assessing whether the rent amount is fair and reasonable, among other things, size, location and condition of the premises and the rent price according to statutory housing lease agreements in the same area shall be considered.

The premises shall be intended for residence and meet requirements for equipment and health standards.

There is an agreement that an employee shall not pay rent for housing, however the wages must nevertheless not be lower than the minimum terms of the collective agreement according to article 1 of law no. 55/1980.

These provisions apply while the employee is on the payroll of the respective employer. 2019

Stakeholders agree on the importance of the workplace as a place of learning. This development and the challenges that are foreseeable in jobs in the coming decades, among other things with the fourth industrial revolution, further increase its importance. The labor market and employees must jointly be able to meet these changes and thereby rely on the country's competitiveness and social stability. Assessing the skills, experience and the informal learning that an employee acquires at the workplace is an important issue because it strengthens the position of those working in the labor market, the trade unions, companies and the nation in general regarding the level of knowledge and development.

Targeted development and construction of real competence assessment is a fundamental prerequisitesend for these goals to be achieved, and the parties agree that strong emphasis should be placed on the development of real competence assessment during the contract period. This applies to real competence assessment against work as well as real competence assessment against study in the formal education system.

Assessment of practical skills can be a stimulus for people in the labor market, across various occupations, to develop in their work and to complete formal education and further strengthen their practical skills in 2019.

The parties to the agreement aim to introduce a new wage system as part of the collective bargaining agreement. Its main objective is that wage setting within companies becomes substantive and flexible. The wage system shall be an option for implementation at workplaces as an allowed deviation under Chapter 5 of the collective agreements. The provisions of Chapter 5 apply in all respects regarding the adoption of the new wage system in companies. The relevant trade union, or trade unions if more than one are party to the agreement, shall ensure that any deviations and compensation for them, assessed comprehensively, comply with the provisions of law and collective agreements concerning minimum standards, see the provisions therein in Chapter 5.

1. Basis 

There is a common understanding among the parties to the agreement that efficient operation of companies is the forsend of good wages for staff and reasonable working hours. Continuous improvements that promote increased productivity and efficiency ensure the operation and competitiveness of companies. One aspect of competitiveness is that the wage setting of companies is linked to measurable performance factors in the wage system that is developed in cooperation with the parties to the wage agreements.

2. Goal  

The aim of the new salary system is to classify jobs in an objective manner, increase the factors considered in job remuneration and develop clear criteria for salary setting and the salary development of individual employees. With the new salary system, employees and employers receive a powerful tool that promotes increased education and professional development, transparency and job satisfaction. At the same time, clearer incentives will be created for employees to develop in their work.

Effective construction and implementation of a new salary system can contribute to increased vocational training, career development, and transparency in wage structure. This involves defining in a purposeful way how assessment of jobs, roles, skills, responsibilities, and performance creates a basis for salary setting and increased benefits for employees and companies.

In the Act on Equal Status and Equal Rights of Women and Men No. 10/2008, requirements are placed on companies with 25 employees or more that the wage system and salary setting be based on objective and transparent criteria. According to the law, companies must implement an equal pay principle during the period 2019-2022, and a new wage system will facilitate that implementation. It is desirable that smaller companies base their wage systems on comparable premises.

3. The Project 

The project consists of developing a simple and accessible payroll system that is based on few but clear factors and can be used by companies of all sizes and types. The payroll system needs to reflect the varying needs of companies so that it can be built on appropriate metrics. Thus, the payroll system does not contain a final definition of metrics or the weight of individual factors, but rather is a framework that staff and managers can develop together and adapt to the needs of each workplace according to the provisions contained in collective agreements.

The new wage system is intended to support and call upon other developments in the labour market and in connection with the education system. It includes, among other things, real competence assessment against jobs and the implementation of equal‑pay certification. In further development of the system and definition work on standards, the Icelandic competence framework will also be taken into account. The starting point is to create a basis for salary setting based on the nature of the job and the employee’s competence, independent of job titles, which will not be part of this system.

The systemð builds on á five mainþá components and within each þ there are more detailed criteria. The Þæ components are both job-related and individual. Based on the þá components and criteria within them, a basis for salary setting, components and criteria within each component is created. The categories and dæmi of possible öguleg þrep í each category are:

Work-related factors  - Role. The criteria in this factor are, for example, the nature of the job and position at > workplace, operational management, supervision with training and onboarding of new > employees. - Responsibility. Responsibility for projects, people, machines, equipment, etc. - Independence. Requirement for independence in work, which may relate to the job as a whole or to its individual components. Individual factors  - Experience and knowledge. Additional knowledge, experience and training that are useful in > work. General competency factors such as communication skills, initiative and > flexibility. - General competence factors. Communication skills, initiative, flexibility > etc. 4. Implementation Plan 

After the entry into force of this collective agreement, the parties will commence joint work on developing a new salary system.

The parties to the agreement shall appoint a working group that will be composed of three representatives of the trade unions, i.e., one from each of the following: SGS, VR and the trade unions of industrial workers, and three representatives of the Confederation of Icelandic Enterprise. The working group is responsible for ensuring that the project is implemented and completed within the specified time. This includes, among other things, authority to temporarily hire a specialist.

The work involves the implementation of components and criteria that create a new wage system taking into account the basis presented above. This includes, among other things, a more detailed specification of the criteria and a direct link of them to wage setting.

When the work on developing the payroll system is completed, a second phase will begin with the preparation of promotional material and a promotional campaign in 2019.

Tourism in Iceland is undergoing significant development and has greatly increased those who work under the tourism agreement as well as the employers who hire staff for work and need to implement the agreement. Some discrepancies exist in that the agreement is being implemented correctly, in most cases where employers and wage earners do not know its provisions well enough.

The parties to the agreement will, after the agreement has been approved, work together to present the main provisions of the agreement to employers and employees with the aim of ensuring its proper implementation. Particular attention shall be given to wages, overtime payments, deductions from wages, and the organization of working hours. Attention shall be drawn to the provisions concerning the start and end of shifts and the payment of wages for work beyond the specified working hours according to the shift schedule.

The parties to the agreement also agree on the importance of having written confirmation of the appointment before the first salary settlement, so that the employee is clear about his terms, whether work shall be performed according to provisions on shift work or time purchase. 2015

The parties to the agreement agree on the importance of employees having access to certain flexibility when it comes to retirement due to age. The needs and circumstances of people in the labour market are varied, and with increasing age and improved health it is common for people to maintain full work capacity and a desire to participate in the labour market beyond retirement age. Flexibility regarding retirement can be reflected in a reduced working proportion in the final years of the working life as well as permission to continue working beyond retirement age for those who have full work capacity and wish to remain active in the labour market. It is important to take into account the circumstances of each individual.

Flexible retirement age has been discussed in a committee that has the task of reviewing the social insurance laws and the parties of the labour market are to be members. The committee agrees that the law should promote increased individual flexibility and has, among other things, dealt with raising the pension age to 70 years in stages and allowing a deferral of pension receipt to the age of 80 instead of the current 72, against an increase in the individual's monthly pension.

In recent years, life expectancy has increased and average lifespan has lengthened worldwide. More and more people are living longer and are healthier in older age. This development calls for a reassessment of the retirement age. Most of our neighboring countries have raised the pension age for these reasons. 2015

The value of work for people's mental and physical well‑being is indisputable and understanding of it is growing. The contribution of older employees is important and is increasing as the natural increase of employees in the labour market declines due to a changing age composition. 2015

The contracting parties will work to assess education/competence for wages in two stages based on job skill analyses. A plan will be made for the analysis of jobs with the involvement of both parties in consultation with the Business Education Center, where the competency factors of the job are incorporated into a curriculum.

The committee of contracting parties, three from ASÍ and three from SA, will commence work no later than autumn 2015. Work will continue on the basis of the proposals that the contracting parties have shaped in preparation for collective agreements. The aim is that training courses and competency assessments will be launched based on this work, autumn 2016.

By 1 Oct 2016, it shall be specified how payment for the competency assessed in the job shall be made. 2015

With „continuous work" in the sense of collective agreements it is meant that the employee has been in continuous employment regardless of whether he/she has temporarily fallen off the payroll. An unpaid period is however not considered part of the employment period for the accrual of rights, unless laws or collective agreements state otherwise, e.g., statutory parental leave. 2015

The parties shall jointly approach the insurance companies to have the insurance terms concerning employee accident insurance changed so that the necessary costs for dental fractures caused by a work accident and beyond are covered under the payment participation according to the Social Insurance Act. As a precaution, otherwise according to the Social Insurance Act and the terms of the insurance companies. 2015

During the term of the agreement, the parties shall jointly seek with the authorities that the leave law be reviewed with a view to clarifying the rights and obligations of the parties. 2015

The parties agree that there is some deviation in that employment contracts should be written or the employment confirmed in writing in accordance with the provisions of collective agreements concerning employment contracts and appointment letters. The contracting parties will, during the contract period, work to introduce the obligations of employers and the rights of employees according to these provisions. The parties will, before the end of 2015, conduct an assessment of the implementation of the provision and its effectiveness, and revise it in light of that. The new provision on sanctions is intended to address the comments of the EFTA Surveillance Authority (ESA). If the ESA deems the provision insufficient, the contracting parties will then commence negotiations to respond. 2014

The Icelandic Union of Trade Workers (SGS) and the Association of Tourism (SAF) agree that the safety of high-value and security guards at their workplaces must be ensured as best as possible. The SGS and FA report on the issue of high-value and security guards shall be taken into consideration and the opportunity provided by establishing a working group on their issues shall be used. Particular attention should be given to those who work at 24‑hour entertainment and restaurant establishments that are open beyond midnight. Work shall be done throughout the country so that high-value and security guards have access to coordinated training based on the working group’s conclusions on their issues.

SGS and SAF agree to inform and encourage owners of entertainment and catering establishments to conduct risk assessments where the need for a knife guard will be examined especially with the view of increasing staff safety. In particular, such safety equipment will be discussed in approved courses that are intended to be attended by fire and safety officers according to regulation No. 1277/2016. 2011

By a modest general wage increase in the collective agreements of the member unions ASÍ and SA, it is meant the minimum increase of the regular wages that an employee receives on the day when the increase according to the collective agreement is to be implemented, regardless of the employee's wages.

It is prohibited to reduce or withdraw overpayments by not paying out general wage increases. Overpayments may therefore only be reduced or withdrawn in accordance with the provisions of the employment contract. However, this provision does not prevent a company from expediting wage increases through salary decisions with special determinations, and then taking into account, in a predictable and predetermined manner, the non-occurrence of general increases over the next 12 months. It must be made clear to the employee in advance, with verifiable evidence, that a rapid general wage increase according to the collective agreement is being discussed. 2011

The contracting parties are committed to revising the structure of preventive health services and occupational safety.

The aim is to promote that responses to illness are made in a predictable manner and that an employee who falls ill is offered appropriate measures as soon as possible. This includes, among other things, increased flexibility in the labour market to ensure that individuals who become ill or injured and are in active occupational rehabilitation have the possibility to return in accordance with their work capacity at any time.

It is clear that this goal will only be achieved if mutual trust exists between the employer and employees regarding the procedures for reporting illness, the return of employees from illness, preventive health services in companies, etc.

The contracting parties participate in a steering group on behalf of VIRK, which works towards the objectives listed here.

Special attention will be given to the development project that is being launched by VIRK concerning prevention and occupational rehabilitation. The parties to the agreement will use the experience and knowledge gained there in their work.

The contracting parties shall provide support and advice to the employees of this development project on legal matters that arise in the project and pertain to rights and obligations under the law and collective agreements in the labour market. 2011

The parties agree to work towards companies complying with the provision on the breakdown of information on the payslip in accordance with the provisions of the collective agreement. The information should be clear and explicit.

The parties to the agreement consider that the development of preventive health services and occupational safety is important for the labor market. It is important that it is successfully carried out to develop services in this area in a positive direction so that it yields results for staff and companies.

The contracting parties will establish a consultation committee intended to reach an agreement on the detailed arrangements regarding the reporting of illnesses to a confidential doctor/service company in the field of occupational safety.

The negotiation committee shall, among other things, discuss the following items:

- The conditions that the confidential doctor / service company must > meet. - Arrangement regarding the reporting of employees to the service company > in the field of occupational health due to illness and accident injuries that > the employer wishes to adopt such an arrangement, as such > reporting would then be equivalent to the submission of a medical certificate. - Confidentiality obligations and the handling of personally identifiable information that > the confidential doctor / service company processes in its activities. This > concerns the collection, processing, storage and deletion of this information. - How the activities of confidential doctors / service companies can benefit > occupational health work in companies.

The negotiation committee will, in its work, cooperate with the Data Protection Authority, the National Commissioner of the Police, the State Labour Inspection and interested parties.

The negotiation committee shall complete its work no later than 30 November 2008.

The ASÍ and SA Negotiation committees shall take a position on the negotiating committee's proposals no later than December 15, 2008.

If the contracting parties reach a joint conclusion, their agreement shall be considered part of the collective bargaining agreement of their member unions and shall take effect on 1 January 2009.

During the aforementioned work, the contracting parties do not comment on the activities of service companies in the field of occupational safety that have been recognized by the State Labour Inspection as service providers in occupational safety and the employees' reporting obligations to them. 2008

In order for an employee to be considered hired for shift work according to section 3.1, the conditions of that section must be met. Particular emphasis is placed on the provision of paragraph 3.1.3 that it must be clear, according to the employee’s employment contract/hiring letter, that a predetermined work schedule is in place according to the current shift roster. The shift roster shall be provided to the employee in a verifiable manner, such as on paper or electronically. 2011

Eligibility for door price Copied!

General

Employees in full-time positions, who work regular shift work, earn 12 winter holidays per year due to contractually agreed holiday and leave days that fall on Monday to Friday in the work week. Winter holidays are not granted for holidays that fall on Saturday and Sunday or if the workplace is closed on a day off.

What is the basis for the right to winter holidays?

The right of shift workers to winter holidays is based on equalising the working year of shift workers with that of day workers who deliver their work week during the day‑work period from Monday to Friday. The permanently employed day workers receive leave on contractually agreed holidays that fall within the work week (Monday – Friday) but still receive full paid day work. For example, Thursday may be a holiday. A day worker works four days a week or 32 hours but is paid for 40 hours of day work. Shift workers deliver an average of 40 hours per week on shifts and the shift schedule is not changed even if a contractually agreed holiday occurs in the week. Thus shift workers deliver 40 hours per shift that week, regardless of public holidays. To equalise their position with day workers, shift workers work one winter holiday for each day that falls on the day workers' work week. Instead of receiving leave simultaneously on contractually agreed holidays, they are accumulated and provided at once as winter holidays.

Which holidays create the right to winter holidays?

When days off according to sections 2.3.1 and 2.3.2 of the collective agreement are taken from Monday to Friday, they generate entitlement to winter holidays. When they fall on a weekend (Saturday or Sunday), they do not create rights for either day workers or shift workers.

If there is no activity on a holy day

If the workplace is closed on a contractually agreed holiday that falls on a Monday to Friday, or if leave is granted on that day, the corresponding number is deducted from winter leave days, except for those who have earned compensatory shift leave. This means that if, for example, the workplace is closed on June 17, the winter leave days of the employees who would have had to work that day are reduced by one. The same applies if an employee takes leave on a weekend day when they should be at work according to the shift schedule. If an employee is on earned shift leave on a day that is closed, they do not lose their right to a winter leave day, as they have already completed a full work week.

The right to take winter holidays is not determined solely by work on a public holiday, but by whether the employee has completed a full work week (40 hours) in a week where the public holiday falls between Monday and Friday. For this reason, the employee earns the right to a winter holiday, even if they were on duty-free on the public holiday, provided they completed a full work week.

Period of acquisition and taking winter break

Winter holidays shall be granted from 1 October to 1 May. The accrual of winter holidays is based on 1 October to 30 September. Some have held the misunderstanding that one winter holiday is earned for each month worked. This possibly stems from the fact that there are 12 winter holidays and 12 months in a year. The correct method is that winter holidays are earned based on the number of holidays in each employee's working month.

If an employee has been employed for part of a year, his accrued winter vacation days shall be counted from the calendar based on the period he has worked. Example of an employee who starts work in June 2004 and works until August. In June there is one public holiday that falls on a working day and one in August. He thereby acquires the right to be paid out 16 hours of day work at termination if he has not taken leave, with day wages for the two working days prior to his resignation.

For the sake of clarity, it should be noted that if holidays falling on Monday to Friday are counted out of the calendar, they are from 9 to 13 per year. According to a calculation made based on a 400-year period, holidays falling on Monday to Friday are 11.21, but according to the collective agreement it is decided to use the number 12.

Payments for winter holidays

Winter holidays are paid out as regular working hours. By this, shift workers receive the same pay as day workers for those contractual days off that fall on Monday to Friday. However, those who work shifts on these days receive a higher shift allowance for a shift worked on a day off than on working days. An employee employed full‑time all year, who earns 12 winter days off, receives 8 hours of day‑time work for each earned day. This amounts to a total of 96 day‑time hours in payment. If employees work 12‑hour shifts, they earn time off equivalent to 8 shifts at the day‑time rate (96/12). No allowance is paid when winter days off are taken out.

Winter leave paid out without deduction

The main rule is that employees take paid summer vacation.

It is permissible, by agreement between the employer and the employee, to apply a different payment rule for special days off/major holidays for shift workers.

In place of summer holidays, it is allowed to pay shift workers 8 hours of day work (i.e., full-time) for each special holiday/major festival day that falls on a working day. Part-time staff receive pay in proportion to their work share.

The payment rule applies both when an employee works on a holiday/festival day (on a working day) and when the employee is on earned shift leave (on a working day) and thereby has fulfilled the full work obligation according to the work proportion.

The right to payment therefore does not depend on whether the employee works on special vacation days/holiday days, but rather on whether they have fulfilled the full work obligation in the relevant week, according to the work proportion.

Company Ltd., ID no. xxxxxx-xxxx on the one hand and " \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \

kt. \ \ \ \ \ \ \ \ \ \ hins vegar, gera með sér svofellt samkomulag um að tengja hluta launa við gengi erlends gjaldmiðils eða greiðslu hluta launa í erlendum gjaldmiðli, á grundvelli ákvæðis kjarasamnings \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ þar um.

Connection to a foreign currency or payment in a foreign currency:

Linking part of wages to a foreign currency

Payment of part of wages in foreign currency

Currency:

EUR

USD

GBP

Another currency, which \" \ \ \ \ \ \ \

Part of fixed wages or total wages paid/linked to a foreign currency:

Part fixed wages paid/linked við foreign currency

Part total salary paid/linked toð foreign gjaldmiðil

Ratio of wages paid/linked to a foreign currency:

10%

20%

30%

40%

Other proportion, which\" \ \ \ \ \ \

This agreement is made in duplicate and each party to the agreement shall keep one original.

Date: \" \ \ \ \ \ \ \ \

On behalf of the company Employee

\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \

2008

The contracting parties agree that a change of ownership of companies or a merger of companies may not alter the terms of employment, including employees' vacation and sick leave rights, unless the employment contract has been terminated. The parties' mutual notice period does not change with a change of ownership of a company.

The parties agree that the former owner may consider proposed changes to the operation or sale of the company, with as much notice as possible.

In a change of ownership, the company proceeds with the new owner assuming the rights and obligations of the previous owners towards the employees, unless something else has been specifically agreed with the previous owners. If the new owner considers himself thus unbound by the previous owner's employment contracts, he must notify the employee of this immediately and he takes over the operation of the company. If so, the previous owner is obligated to pay the employee the notice period according to the employment contract or lease agreement.

Corresponding rules apply to the lease of a company as well as the sale or lease of a company after bankruptcy, since the agreement is for the operation of the company and not at all for premises, equipment and other furnishings.

The acquisition of an employee's vacation days corresponds to a certain number of work days (shifts) in leave. The following tables show free shift acquisition based on various types of work arrangements (shift systems).

Work arrangement

+-----------------+-----------+------------+------------+--------------+ | > Vacation days | V | | | Work-free | | | In-house free | Work-free | Work-free | | +-----------------+-----------+------------+------------+--------------+ | own | 5 / 2 | 1 / 1 | 4 / 2 | 6 / 2 | +-----------------+-----------+------------+------------+--------------+ | 1 | 1 | 0.7 | 0.9 | 1.1 | +-----------------+-----------+------------+------------+--------------+ | 2 | 2 | 1.4 | 1.9 | 2.1 | +-----------------+-----------+------------+------------+--------------+ | 3 | 3 | 2.1 | 2.8 | 3.2 | +-----------------+-----------+------------+------------+--------------+ | 4 | 4 | 2.8 | 3.7 | 4.2 | +-----------------+-----------+------------+------------+--------------+ | 5 | 5 | 3.5 | 4.7 | 5.3 | +-----------------+-----------+------------+------------+--------------+ | 6 | 6 | 4.2 | 5.6 | 6.3 | +-----------------+-----------+------------+------------+--------------+ | 7 | 7 | 4.9 | 6.5 | 7.4 | +-----------------+-----------+------------+------------+--------------+ | 8 | 8 | 5.6 | 7.5 | 8.4 | +-----------------+-----------+------------+------------+--------------+ | 9 | 9 | 6.3 | 8.4 | 9.5 | +-----------------+-----------+------------+------------+--------------+ | 10 | 10 | 7.0 | 9.3 | 10.5 | +-----------------+-----------+------------+------------+--------------+ | 11 | 11 | 7.7 | 10.3 | 11.6 | +-----------------+-----------+------------+------------+--------------+ | 12 | 12 | 8.4 | 11.2 | 12.6 | +-----------------+-----------+------------+------------+--------------+ | 13 | 13 | 9.1 | 12.1 | 13.7 | +-----------------+-----------+------------+------------+--------------+ | 14 | 14 | 9.8 | 13.1 | 14.7 | +-----------------+-----------+------------+------------+--------------+ | 15 | 15 | 10.5 | 14.0 | 15.8 | +-----------------+-----------+------------+------------+--------------+ | 16 | 16 | 11.2 | 14.9 | 16.8 | +-----------------+-----------+------------+------------+--------------+ | 17 | 17 | 11.9 | 15.9 | 17.9 | +-----------------+-----------+------------+------------+--------------+ | 18 | 18 | 12.6 | 16.8 | 18.9 | +-----------------+-----------+------------+------------+--------------+ | 19 | 19 | 13.3 | 17.7 | 20.0 | +-----------------+-----------+------------+------------+--------------+ | 20 | 20 | 14.0 | 18.7 | 21.0 | +-----------------+-----------+------------+------------+--------------+ | 21 | 21 | 14.7 | 19.6 | 22.0 | +-----------------+-----------+------------+------------+--------------+ | 22 | 22 | 15.4 | 20.5 | 23.1 | +-----------------+-----------+------------+------------+--------------+ | 23 | 23 | 16.1 | 21.5 | 24.2 | +-----------------+-----------+------------+------------+--------------+ | 24 | 24 | 16.8 | 22.4 | 25.2 | +-----------------+-----------+------------+------------+--------------+ | 25 | 25 | 17.5 | 23.3 | 26.3 | +-----------------+-----------+------------+------------+--------------+ | 26 | 26 | 18.2 | 24.0 | 27.3 | +-----------------+-----------+------------+------------+--------------+ | 27 | 27 | 18.9 | 25.2 | 28.4 | +-----------------+-----------+------------+------------+--------------+ | 28 | 28 | 19.6 | 26.1 | 29.4 | +-----------------+-----------+------------+------------+--------------+ | 29 | 29 | 20.3 | 27.1 | 30.5 | +-----------------+-----------+------------+------------+--------------+ | 30 | 30 | 21.0 | 28.0 | 31.5 | +-----------------+-----------+------------+------------+--------------+ | | | | | | +-----------------+-----------+------------+------------+--------------+

The Icelandic Confederation of Labour and the Confederation of Icelandic Enterprises have reached an agreement on the following handling of disputes concerning foreign employees.

Conditions and common goals

The unions agree that Iceland's obligations under the EEA agreement on the free movement of goods, capital, services and labor across state borders have a positive impact on the interests of individuals and companies here in the country, together with increased supply of goods and services, dissemination of knowledge between countries, increased competition among companies, development in various sectors of society and the proliferation of jobs.

The EEA agreement provides that citizens of the member states may travel between countries for work purposes without a work permit. Companies that have been established there also have the right to provide services in another member state with their own employees without a special permit. Citizens of EFTA states essentially have the same right under the EFTA founding treaty.

The principle is that other foreigners (third-country nationals) will not be hired for work here in the country without a work permit.

The parties to this agreement consider that changes in the composition of the workforce due to the increase of foreigners in the Icelandic labor market should not disrupt the existing framework for determining wages and other employment conditions of salaried employees with collective agreements. Further action will be based on the current rules regarding the implementation of collective agreements.

It is a common task of the parties to promote that companies which use foreign labour for their production or services pay wages and working conditions in accordance with collective agreements and the laws of this country.

If wage agreements are not respected, it undermines the operations of other companies, distorts the premises of fair competition, and reduces the benefit to the whole society from a trustworthy and healthy business environment.

The parties agree that the adaptation of foreign labor and foreign companies to the customs and practices of the Icelandic labor market and society is intended to create trust and peace in the parties' communications.

The right of employees to work in certain occupations is in the law widely conditioned on the individual having completed specific education or obtained a special certification to be allowed to work in the profession. The EEA agreement provides for the right of foreign employees to have their education, professional qualifications and work experience acquired in another EEA state recognized here in the country according to the laws and regulations that apply.

Main rules on working conditions for foreigners

With this agreement, the Icelandic Confederation of Labour and the Confederation of Business want to ensure the implementation of the applicable laws on the working conditions of foreigners in the Icelandic labour market. These rules can mainly be found in the following areas:

Wages and other terms of employment. In the law on terms of employment for wage earners and compulsory pension rights insurance No. 55/1980, it is stipulated that wages and other terms of employment, which the member organisations of the labour market agree upon, shall be minimum conditions, regardless of nationality, for all wage earners in the relevant occupational group in the area to which the collective agreement applies.

Employees of foreign service companies, including employee leasing. The Act on the legal status of employees who work temporarily in Iceland on behalf of foreign companies No. 54/2001, provides, among other things, that employees, while they work here, shall enjoy collective agreement wages, holiday rights and regulations regarding facilities, health conditions and safety in the workplace.

Free movement of workers. The EEA Agreement and the law on free movement of workers within the European Economic Area No. 47/1993 state that it is prohibited to treat a worker who is a citizen of another EEA state differently from the state in which they work regarding recruitment and working conditions, especially and in particular concerning wages.

Work permit for citizens of third states. The Act on Employment Rights of Foreigners No. 97/2002 stipulates that a work permit shall grant the right to work in this country in accordance with the laws and regulations applicable to the Icelandic labour market and that an employment contract shall be in place guaranteeing the employee wages and other working conditions equal to those of domestic workers, cf. Act No. 55/1980.

Information about wages and other terms of employment of foreign wage earners

It is the role of union representatives at the workplace to ensure that concluded collective agreements are upheld towards the staff, cf. Article 9 of Law No. 80/1938.

If there is a substantiated suspicion of a breach of the relevant collective agreement or laws concerning the employment conditions of foreign wage earners, a trustee, pursuant to this agreement, has the right to examine data on the wages or other employment conditions of those foreign employees to whom the collective agreement applies and who work for the relevant employer, and, insofar as it concerns their employment rights that are required in positions where such rights are demanded.

If there is no union representative at the workplace, the representative of the relevant trade union has the same authority as a union representative to examine documents and bears the same responsibilities.

The information shall generally be provided by allowing the union representative to see copies of pay slips or other documents that confirm wage payments and other terms of employment of the relevant employees. The union representative is prohibited from taking the information out of the workplace. The union representative shall keep confidentiality about information that is disclosed to him in confidence. However, the union representative is allowed to consult the relevant trade union and its representatives must keep the utmost confidentiality about the information they become aware of.

If an employer does not comply with a trustee's request to provide access to information about wages and other employment conditions of a foreigner and/or there is a dispute as to whether provisions of collective agreements or laws are being observed, see law 55/1980, law 54/2001 and regulation no. 1612/68/EEC on the free movement of workers, see law no. 47/1993, and if the dispute cannot be resolved within the company, it is permitted to refer the dispute to the special consultative board of ASÍ and SA.

Consultative Committee of ASÍ and SA

The Advisory Committee of ASÍ and SA dealing with foreign matters under this agreement shall be appointed with four representatives, two appointed by ASÍ and the national association concerned, and two representatives appointed by SA.

The consultative committee shall seek ways to clarify matters referred to it pursuant to the aforementioned rules and resolve disputes through dialogue between them.

Matters referred to the committee shall be taken up for discussion in the committee within two weeks unless there are special reasons for obstruction.

In examining the case, the committee may request necessary data from the relevant employer regarding the wages or other terms of employment of the foreign employees concerned and, as applicable, regarding their employment rights for those working in positions where such rights are required. The authority applies to those foreign employees covered by the collective agreements of ASÍ member unions, cf. Article 1 of Law 55/1980.

A confidant or a representative of a trade union who has been appointed in place of a confidant is not bound by confidentiality regarding his/her communications with the committee concerning matters that are under discussion there. In such cases, representatives in the joint committee may consult the confidant or the trade union representative who has been appointed in place of the confidant, as mentioned above, in order to obtain further information concerning the matters under discussion.

The advisory committee and individual representatives in the committee shall maintain confidentiality regarding information obtained from the employer, a confidant, or a union representative, and it is prohibited to disclose or reveal the material to third parties.

The committee's conclusion shall be presented to the stakeholders.

Despite the committee's decision, it is permissible to refer the case to the courts. The duty of confidentiality according to the foregoing does not, in that case, prevent the submission of data in legal proceedings.

Reykjavik, 7 March 2004