One might think that employments is one of those few areas where standard agreements already exist. The law is pretty strict on what can and cannot be agreed between employer and employee, there are lots of legal precedent cases.
However, not even lawyers agree on what a normal employment contract (Icelandic: ráðningarsamningur) looks like. To all employers, to all employees and to all labor lawyers out there – unite! We’re proud to present to you three different templates for Icelandic employment agreements:
- Permanent employment (ótímabundinn): This is the normal form of employment in Iceland where the employee is hired for an indefinite period of time.
- Managing directors: Icelandic employment law is quite restrictive regarding employment conditions and terms relating to firing employees. However, in some cases exceptions can be made for managing directors. In those cases (verify if applicable!) you can use this template.
- Hourly wage: If someone’s salary is irregular and based on the number of hours worked, this template may be useful.
As always, the information and documents published here are intended for general information purposes only. When using the documents, in case of doubt, always consult with legal expertise before signing.
Focus on running your business, instead of spending time and money on unnecessary legal paperwork and negotiations. Help us keep StartupTools free by making a donation.
Why both “Permanent employment” and “Hourly wage” states that special compensation for overtime work will not be paid? Yet this is a right for workers according to this URL:
Thank you for your questions Juan. As long as the employee is paid more than minimum wage it is up to the employee & employer to agree on if over time should be paid or not. We have found that what we have in our templates corresponds with the general standard of how startups operate in Iceland (and elsewhere). There is however nothing stopping two parties from using our templates and alter that particular part of the agreement.