Global Research Paper
Iceland
Sam
Austin
Kimberly
Mimi
Zane
Julie
Employee and Labor Relations
December 1st, 2016
Introduction
Although the Icelandic economy is one of the smaller economies in the world, growth
within the region has provided Icelandic inhabitants with incredibly high living standards in
comparison to the standards within other countries. The country’s economy is indeed a booming
one, providing for a constant demand for labor as well as plenty of opportunity for individuals
within the workforce. As Icelandic workers are treated well in the workplace, paid well, and are
provided with benefits, it seems as though this seems to be one of greater reasons as to why
Iceland’s economy has continued to flourish. This research paper will provide a background of
Iceland’s history, outline the practices of Icelandic employers, as well as do an in-depth
examination of a US company doing business in Iceland.
Laws and Common Practices
The European Union emphasizes high quality work and employment for Icelandic
workers. Their happiness and well-being, as well as safe working conditions of Icelandic
workers, is highly promoted. The high welfare of the workers will make their work more
productive, efficient and effective, thus increasing Iceland’s economic performance.
Iceland’s labor market is mostly regulated through collective bargaining agreements.
“Collective agreements govern approximately 88% of the workforce” (Employee & labour law
in Iceland, 2016). In terms of employment law, there has been a focus on increasing female
representation within the workforce, as well as equal pay, through the Act on Equal Status and
Equal Rights of Women and Men. This protects workers from “bullying, gender based violence,
gender-based harassment or sexual harassment in the workplace” (Employee & labour law in
Iceland, 2016). The category of race cannot be discriminated against, and other categories like
age, disability, gender, sexual orientation and religion also cannot be discriminated against, but
employers are allowed to be selective on the grounds of justified distinction.
Icelandic workers are entitled to many forms of leave. Workers are entitled to maternity
or paternity leave and parental leave, if they are active in the labor union, granted through the
Act on Maternity/Paternity and Parental Leave. Workers are eligible for payment from the
AMPPL if the worker has worked for longer than six consecutive months prior to their first day
of maternity/paternity leave. Workers with a child under the age of eight, is entitled to parental
leave, and are granted thirteen weeks of unpaid leave in order to tend to their child’s needs.
Parental leave is granted after six consecutive months of working, prior to the first day of
parental leave. Workers are eligible for one month of sick leave in their first year, and the
amount of time off and pay increase the longer you work.
In terms of getting a job within the Icelandic region, individuals are encouraged to visit
the EURES Job Mobility Portal on www.eures.europa.eu in order to see the most up to date job
