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You have notice periods ! You can not be fired on the spot with no payment !

Termination of employment

The principal rule in Iceland is that employers and employees are equally authorized to cancel employment contracts without stating the reason for this. Employees are generally hired without time limits, in which instance the employment contract is cancelled with a termination notice period as stated in the collective agreements.The employment-termination notice is mutual and such employment cancellations shall be in writing and in the same language as the employee’s employment contract. The employee has the right to an interview regarding the end of his employment and the reasons for the termination of his employment and can request them to be stated in writing. A request for the interview shall be given within 96 hours from the employees’ knowledge of the contract’s termination.

Should the employer fail to fulfill the said request the employee is entitled to another interview with the employer in the presence of his or her union representative or other representative of the union, should he or she request so.

Notice periods

Notice periods range from 12 days to six months (three months are common), depending on rules of the applicable collective agreement.

Notice of termination must be in writing and based on the turn of the month (or week if applicable). If the worker does not receive his formal notice of dismissal at least on the last working day of the month, his notice period is automatically pushed back to the turn of the next month.

An employment which has been terminated by either party remains intact until the end of the notice period, which means that rights and obligations under the agreement remain unchanged during the period.  The parties can however come to an agreement to end their relationship before the notice period expires.

A worker deprived of his right to a lawful notice of termination can claim damages, equal to his loss during the notice period. Where the worker on the other hand leaves without giving the required notice, the employer may have, in certain circumstances, a right to claim damages. There are exceptions, where no notice is required – such as in the event of gross misconduct by either party or dangerous or insufficient working conditions.

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