This agreement applies to the work of members of Efling - a trade union in restaurants, accommodation, service and payment outlets, entertainment companies and similar activities.

1.2.1. Salary group 6 [^1]

General restaurant staff. General hotel staff during the first 3 months of employment.

	1.2.2024	1.1.2025	1.1.2026	1.1.2027
Starting age 18 years	430.941	454.967	478.993	503.020
E. 1 year in the job category.	435.250	459.517	483.783	508.050
E. 3 years in the job category.	441.779	466.410	491.040	515.671
E. 5 years in business	450.615	475.738	500.861	525.984

Salary group 7 [^2]

General guest house staff after a 3-month probationary period.

Specially trained staff in restaurants, hotels and entertainment activities. Specially trained staff include staff who can work independently, show initiative and can be entrusted with temporary project management. Furthermore, staff who have specialized knowledge that is useful in their work or have special responsibilities.

	1.2.2024	1.1.2025	1.1.2026	1.1.2027
Starting age 18 years	433.440	457.606	481.771	505.938
E. 1 year in the job category.	437.774	462.182	486.589	510.997
E. 3 years in the job category.	444.341	469.115	493.888	518.662
E. 5 years in business	453.228	478.497	503.766	529.035

In a rapidly changing job market, it is important that job skills are visible and validated. Some jobs in the tourism industry have changed significantly and become more specialized, and the parties agree on the importance of conducting skills assessments for these jobs.

Competency analyses are useful for employees and contribute to the competitiveness of companies, which has benefits for both employees and companies. Competency analysis involves preparing job profiles for specialized jobs in restaurants, hotels and entertainment activities in consultation with the Icelandic Business Education Centre, where the competency criteria for jobs are analyzed through competency analysis, assessment lists are developed for the jobs and subsequently, competence is confirmed through the issuance of professional certificates.

The parties will summarize which jobs fall under this agreement and the aim is for the summary to be ready no later than 31.12.2024.

Until the results of the competency analysis are available, the following personnel who would otherwise be classified in salary group 6 will be classified in salary group 7 due to specially trained personnel in restaurants, hotels and entertainment activities:

(a) Employees who have worked four years or more in the same or a similar job, whether in Iceland or abroad, and at least six months at their current workplace.

(b) Employees who have worked for three years or more in the same or a similar job, whether in Iceland or abroad, and at least four months at their current workplace, provided that they have completed a total of at least 40 hours of courses related to the job they are performing.

Salary ranges for trainers and assistants

Salary group 4

Assistants without experience in training

	1.2.2024	1.1.2025	1.1.2026	1.1.2027
Starting age 18 years	425.985	449.735	473.485	497.235
E. 1 year in the job category.	430.245	454.232	478.220	502.207
E. 3 years in the job category.	436.699	461.045	485.393	509.740
E. 5 years in business	445.433	470.266	495.101	519.935

Salary group 10

Experienced trainers

	1.2.2024	1.1.2025	1.1.2026	1.1.2027
Starting age 18 years	441.026	465.615	490.202	514.792
E. 1 year in the job category.	445.436	470.271	495.104	519.940
E. 3 years in the job category.	452.118	477.325	502.531	527.739
E. 5 years in business	461.160	486.872	512.582	538.294

Salary group 17

Trainers with a two-year degree from Hólar University or equivalent.

	1.2.2024	1.1.2025	1.1.2026	1.1.2027
Starting age 18 years	459.247	484.852	510.455	536.060
E. 1 year in the job category.	463.839	489.701	515.560	541.421
E. 3 years in the job category.	470.797	497.047	523.293	549.542
E. 5 years in business	480.213	506.988	533.759	560.533

In this collective agreement, the starting salary is based on the employee having reached the age of 18 and having acquired the ability to perform the relevant job. The training period is based on a maximum of 300 hours with the employer or 500 hours in the profession after reaching the age of 16. During the training period, 95% of the starting salary may be paid. An employee who has reached the age of 22 shall not, however, receive a salary lower than according to a one-year step, cf. Art. 1.5.3.

The salary of a 17-year-old is 89% of the starting salary, the salary of a 16-year-old is 84%, the salary of a 15-year-old is 71% and the salary of a 14-year-old is 62% of the same base. The age bracket for employees under 18 is based on year of birth.

An employee must submit confirmation of work experience in the profession, and seniority is assessed from the beginning of the month following the confirmation.

1.2.4. Recruitment for management positions

Employees hired for management positions shall receive a salary that is 15% higher than that specified in Article 1.2.1. Replacements for those positions, requested by the employer, shall be paid in the same manner. The scope of work of those hired for management positions shall be defined in a written employment contract.

1.2.5. The scope of work of doormen shall be defined in a written employment contract.

1.2.6. Employee interviews

An employee has the right to an interview with a supervisor once a year about his or her work, including performance and goals and possible changes in terms of employment. If an employee requests an interview, it shall be granted within two months and the outcome shall be known within a month.

1.2.7. Competency assessment

Competence for wages may be assessed in a competency-based wage system that, among other things, takes into account the Icelandic Competence Framework. When all the competency requirements for a job are met, the skills are confirmed with a professional certificate for the relevant job. The professional certificate is the result of a collaboration between the Icelandic Business Education Centre (FA), the Confederation of Icelandic Employers (SA) and the Icelandic Confederation of Labour (ASÍ). The professional certificate is issued by the FA, which certifies that the correct methodology has been used in the implementation of assessment and vocational training.

This lays the foundation for setting salaries based on the content and nature of the work and the qualifications of employees, regardless of job titles that are not part of this system.

Example:

Work-related factors

• Role - Criteria in this section include, for example, the nature of the job and position in the workplace, project management, supervision of training, and the reception of new employees.
• Responsibility - Criteria in this aspect include, for example, responsibility for projects, people, machines, equipment, etc.
• Independence - Criteria in this aspect include, for example, requirements for independence in work, which can be related to the job as a whole or individual aspects of the job.

Individual factors

• Experience / knowledge - Criteria in this section include, for example, additional knowledge, experience, and training that is useful in the job.
• General competency components - Criteria in this component include, for example, communication skills, initiative and flexibility.

1.3.1. Salary changes

Salaries will increase proportionally, with a minimum increase in króna, unless otherwise stated in the salary tables attached to this collective agreement. Monthly salary refers to a fixed monthly salary for daytime work.

February 1, 2024: 3.25% or ISK 23,750.

January 1, 2025: 3.50% or ISK 23,750.

January 1, 2026: 3.50% or ISK 23,750.

January 1, 2027: 3.50% or ISK 23,750.

1.3.2. Purchase rates

Purchase rates increase separately, cf. attachment to this agreement.

1.3.3. Salary-related items

The wage-related items of the collective agreement will increase as follows, unless otherwise agreed:

February 1, 2024: 3.25%

January 1, 2025: 3.50%

January 1, 2026: 3.50%

January 1, 2027: 3.50%

1.3.4 Purchase price increase

If the collective agreements remain in force, the Wage and Conditions Committee shall in March 2025, 2026 and 2027 decide on a special wage increase if the wage index of Statistics Iceland for the general labour market shows that wages have increased in excess of the increase in the lowest wage. The proportional increase in that index shall be compared with the proportional increase in the 4th section of the SGS/Efling collective agreements for the same period. The wage increase shall be calculated as the full percentage of the excess increase over the aforementioned wage increase, and all minimum wage increases in the parties' collective agreements shall be increased by that percentage from 1 April each year.

a) In March 2025, an increase in the purchasing power parity rate and the development of the wage index in the period November 2023 - November 2024 should be expected.

b) In March 2026, an increase in the purchasing power parity rate and the development of the wage index for the period November 2024 – November 2025 should be considered.

c) In March 2027, an increase in the purchasing power parity rate and the development of the wage index in the period November 2025 - November 2026 should be considered.

If productivity bonuses and wage rate bonuses are paid concurrently under this collective agreement, the minimum wage rates of the collective agreements shall be increased by the higher bonus at any given time.

Productivity increase

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

The productivity increase and payment for it are further detailed in an appendix to this agreement.

1.4.1. December bonus

The December bonus for each calendar year based on full-time work is:

In the year 2024: 106,000 ISK.

In the year 2025: 110,000 ISK.

In the year 2026: 114,000 ISK.

In the year 2027: 118,000 ISK.

Full-time work in this context is considered to be 45 weeks worked (1800 working hours) or more excluding holidays. The bonus is paid no later than December 15 of each year, based on the employment ratio and working hours, to all employees who have been continuously employed by the employer for 12 weeks in the previous 12 months or are employed in the first week of December. It is permitted, by agreement with the employee, for the settlement period to be from December 1 to November 30 of each year instead of the calendar year.

The December bonus includes vacation, is a fixed amount and is not subject to change according to other provisions. The earned December bonus shall be settled in parallel with the termination of employment if it occurs before the bonus's due date.

An employee who is in an employment relationship with a company but is not on the payroll due to illness in December does not lose the right to December compensation, and that time is included in the calculation of December compensation.

1.4.2. Holiday allowance

The holiday bonus for each holiday year (May 1 to April 30) based on full-time work is:

ISK 58,000 for the vacation year starting May 1, 2024

ISK 60,000 for the vacation year starting May 1, 2025

ISK 62,000 for the vacation year starting May 1, 2026

ISK 64,000 for the vacation year starting May 1, 2027

Full-time work in this context is considered to be 45 weeks or more worked, excluding vacation. The bonus is paid on June 1, based on the employment rate and working hours during the vacation year, to all employees who have been continuously employed by the employer for 12 weeks in the last 12 months as of April 30 or are employed in the first week of May.

Holiday bonus includes vacation, is a fixed amount and is not subject to change according to other provisions. Earned holiday bonus shall be settled in parallel with termination of employment if it occurs before the bonus's due date.

1.4.3. Absences due to maternity leave or when a woman needs to stop working during pregnancy for safety reasons.

After one year of employment with the same employer, absences due to statutory maternity leave are counted as working time when calculating December and holiday pay. The same applies if a woman has to stop working during pregnancy for safety reasons, cf. the Regulation on measures to increase the safety and health at work of women who are pregnant, have recently given birth or are breastfeeding.

1.5.1. If requested, the employee shall provide proof of his or her work experience.

1.5.2. Seniority in terms of work experience in the same profession shall be assessed according to confirmed information about previous jobs. In general jobs, such as kitchen work, cleaning and serving, work experience in related fields including domestic work shall be assessed separately. In the case of comparable jobs, employees may achieve up to one year of salary step, even if they have not previously worked according to this collective agreement.

When assessing seniority for salary purposes, age 22 is considered equivalent to one year of employment in the profession.

1.5.4. Regarding rights acquired due to work abroad, see Article 13.4.3.

The daily wage should be found by dividing 172 by the monthly wage.

1.7.1. Overtime is paid at an hourly rate, which corresponds to 1.0385% of the monthly salary for daytime work.

The calculation of overtime pay is based on the employment contract or written confirmation of employment.

1.7.2. Overtime work on major holidays, according to Art. 2.3.1. is paid at an hourly rate, which corresponds to 1.375% of the monthly wage for daytime work. This does not apply to regular work of shift workers, where winter leave is granted according to Art. 3.4. for work on the days in question.

1.7.3. Overtime workers who do not benefit from special allowances according to Article 3.2. and winter holidays according to Article 3.4. shall, in addition to overtime pay, be paid daytime wages for work on Good Friday, Easter Sunday, Whit Sunday, June 17, Christmas Day, Christmas Eve after 12:00 and on New Year's Day between 12:00 and 22:00. However, on New Year's Eve from 22:00 and on New Year's Day, work shall be paid at double overtime pay.

If employees are called to work, they are paid for at least four hours.

1.9.1. If an employee has worked for the same employer or in the same profession continuously for one month or more, he or she shall be paid an undiminished monthly salary, including contractual holidays that fall on Mondays through Fridays.

1.9.2. Continuous work of one month means that full-time work/shift work has been done for the same employer or in the same profession for one month, as absences due to illness, accidents, vacation, strikes or lockouts are equivalent to full-time work.

1.9.3. An employee who has worked in seasonal or part-time work for a total of one month with the same employer in the past two years shall be paid the full monthly wage according to 1.9.1. when he is hired for regular work, cf. Art. 1.9.2.

1.10.1. Those who are called to work irregularly (not required to work) shall receive hourly wages according to wage group 6 based on length of service and acquired rights with the same employer.

1.10.2. An employee who works part-time (pre-agreed work/work ratio), whether part of a day or otherwise, shall enjoy the same right to payment of contractual and statutory accrued rights such as holidays, sick and accident days, termination rights, seniority increases, etc. as those who work full-time, and payments shall be based on the work ratio and normal working day of the employee in question.

1.11.1. Wages shall be paid monthly in arrears on the first working day of the following month, so that when fixed monthly wages are paid, for example, for January, payment shall be made for the 1st to 31st and payment shall be made on the first working day of February. Overtime wages, shift bonuses and other payments shall also be paid for the period from the 20th day of the month to the 19th day of the month immediately preceding the payment date. However, those who do not work for fixed monthly wages shall be paid their wages weekly, no later than Friday of the following week. If the payment date falls on a holiday according to Art. 2.3., payment shall be made on the last working day of the month.

1.11.2. The general rule shall be to pay for purchases by depositing them into the bank account of the employee in question.

1.11.3. If an employer wishes to adopt a different wage payment system than that provided for in this agreement, he is obliged to consult with his employees, the relevant trade union and the relevant employers' organization.

1.11.4. When paying wages to an employee, a pay slip marked with his name shall be included. The pay slip shall itemize fixed wages, hours worked during the day, hours worked with shift work, overtime, clothing allowance, travel allowance, public charges, pension fund contributions and other deductions. Holiday pay shall be recorded on the pay slip in accordance with Act No. 30/1987. The accrued right to take time off shall also be specified in accordance with Article 2.4.2. The work report shall be entered in duplicate and the employee shall retain one copy. Where electronic recording or a time clock is used, a copy of the daily time recording shall be included with the pay slip. In the case of an employee's product inventory, signed inventory notes shall be accessible to the employee.

1.11.5 An employee shall have the option of accessing time records going back 12 months. All changes to the record shall be accessible and visible to the employee.

If an agreement is reached between a restaurant owner and his employees to work on streamlining and introducing a performance-based pay system, the relevant union will be allowed to monitor from the beginning.

1.13.1. Maids are not required to carry out major cleaning of the ceilings of accommodation units.

1.13.2. When hiring night guards, the scope of work shall be defined in writing.

1.13.3. This agreement covers night duty in companies and concerns only any type of monitoring, telephone monitoring and doormanship related to the job. Other and unrelated work is subject to agreement between the employee and the company.

1.13.4. When hiring doormen, their scope of work shall be defined in a written employment contract.

In addition to the terms of employment, it should be noted that the person in question meets the requirements of Article 21 of Regulation No. 1277/2016 on restaurants, accommodation and entertainment to perform the duties of a doorman, see page 11. 79.

A doorman's job is to maintain order inside the building and in the queue of guests outside the door, in addition to other tasks assigned to him by the employer.

1.14.1. If an employee is employed for a period longer than one month and on average longer than eight hours per week, a written employment contract shall be concluded upon employment or no later than one month after the start of work or the employment shall be confirmed in writing. If an employee resigns before the end of the one-month period, without a written employment contract having been concluded or the employment confirmed in writing, such confirmation shall be provided upon termination of employment. Employment contracts shall be concluded in duplicate and the employee shall retain one copy. It is nevertheless permissible to send an employment contract to the employee electronically, provided that it is confirmed by both parties.

1.14.2. Changes to employment terms beyond what results from law or collective agreements must be confirmed in the same manner no later than one month after they come into effect.

1.14.3. The provisions of Articles 1.14.1. and 1.14.2. do not apply to employment in casual positions, provided that there are objective reasons for this.

1.14.4. Employer's obligation to provide information - An employment contract or written confirmation of employment, i.e. a letter of employment, shall include at least the following:

1. Identity of parties including social security numbers.
2. Workplace and address of the employer. If there is no permanent workplace, or a place where the work is regularly performed, it must be stated that the employee is employed at different workplaces.
3. Title, position, nature or type of work for which the employee is employed or a brief description or outline of the job.
4. First day of work.
5. The duration of the employment is temporary.
6. Holiday entitlement.
7. Notice period by employer and employee.
8. Monthly or weekly salary, for example with reference to wage rates, other payments or benefits as well as payment periods.
9. Length of a normal working day or work week.
10. Pension fund.
11. Reference to the applicable collective agreement and the relevant union.

Information pursuant to paragraphs 6 - 9 may be provided with reference to collective agreements.

1.14.5. Jobs abroad - If an employee is assigned to work in another country for one month or more, he shall receive written confirmation of employment before departure. In addition to the information according to Art. 1.14.4., the following shall be provided:

1. Estimated duration of employment abroad.
2. In what currency are salaries paid?.
3. Compensation or benefits related to work abroad.
4. Where applicable, the conditions for the employee to be able to return to their home country.

Information pursuant to paragraphs 2 and 3 may be provided with reference to legislation or collective agreements.

1.14.6. Temporary employment

Temporary employment is governed by Act No. 139/2003 on the Temporary Employment of Employees.

1.14.7. Right to compensation

If an employer violates the provisions of this article, he may be liable for damages.

It is permitted to pay part of the fixed monthly salary in a foreign currency or to link part of the fixed monthly salary to the exchange rate of a foreign currency by agreement between the employee and the employer. The selling rate of the currency on the date (agreement date) on which the agreement between the employee and the employer is made shall be used.

Fixed monthly salary shall be calculated and presented on a pay slip in the following manner:

1. Fixed monthly salary in Icelandic krónur on the contract date.
2. The amount of króna that is agreed to be paid in foreign currency or linked to the foreign currency exchange rate on the date of the agreement is deducted.
3. Part of the fixed monthly salary that is paid or linked to a foreign currency (cf. item 2), calculated in Icelandic krónur at the selling rate of the foreign currency three business days before the payout date.

The sum of 1.-3. can never be lower than the minimum rate of the collective agreement that applies to the profession in question.

The sum of 1.-3. forms the basis for payment of public fees and contributions according to the collective agreement, such as in pension, social, health, rehabilitation, vacation home and retraining funds.

An employee and employer may agree that overtime, shift premiums, bonuses and other payments will be settled partially or entirely in foreign currency.

Salary increases shall only be calculated on item 1, i.e. fixed monthly salary in Icelandic krónur.

An employee may at any time request termination of the agreement. If an employee makes such a request, the employer shall comply with it from the beginning of the month following the month in which it is made. The employee shall then receive wages according to section 1, with any amendments, from the date the original agreement was made.

The employee and employer must make a written agreement on the payment of wages in foreign currency or linking wages to a foreign currency. See attached document, page 82.

Provisions in employment contracts that prohibit employees from working for competitors of the employer are non-binding if they go beyond what is necessary to prevent competition or unfairly restrict the employee's freedom of employment. Whether this is the case must be assessed in each individual case, taking into account all the circumstances. Competition clauses must therefore not be worded too generally.

When assessing how broad a non-competition clause in an employment contract may be, particularly in terms of scope and time limit, the following factors must be considered:

1. What type of job the employee in question holds, for example whether they are a key employee, have direct contact with customers or are under a high degree of confidentiality. Also what knowledge or information the employee may have about the company's operations or its customers.
2. How quickly the employee's knowledge becomes obsolete and whether normal equality between employees is maintained.
3. What type of activity is involved and who are the competitors in the market in which the company operates and the employee's knowledge extends to.
4. That the employee's freedom of employment is not unfairly restricted.
5. That the competition clause is limited and concise in order to protect specific competitive interests.
6. The rewards an employee receives, for example their salary, also have an impact.

Non-competition clauses in employment contracts do not apply if an employee is terminated without giving sufficient reason.

If an employer requests that an employee submit a certificate, such as a criminal record or a health certificate, the employee must submit such certificates and the employer must pay for them. Payment for medical certificates is governed by Article 9.4.3.

The provisions of paragraph 1 do not apply to certificates that job applicants are required to submit in connection with a job application.

The parties to the agreement recommend that when vacancies are advertised in the media, applicants are not required to submit certificates, which must be paid for by public bodies, immediately upon initial application. Only those applicants who are considered for the position are required to submit such certificates.

The parties agree on the importance of the employment contract clearly stipulating which collective agreement applies to the terms of employment. It shall be stated in the employment contract that the employee will be entitled to benefits in accordance with the collective agreement of Efling - the trade union and the Confederation of Icelandic Employers for catering, accommodation, service and point-of-sale establishments, entertainment companies and similar activities, provided that the employee is intended to work in accordance with that collective agreement. [2019]

2.1.1. In return for the fixed monthly salary, employees shall work 40 hours per week (effective working hours 37 hours and 5 minutes), proportionally shorter hours if any of the holidays listed in 2.3.1. – 2.3.2. fall during the week. The work shall be performed between 08:00 and 17:00 five days a week.

It is permissible to arrange daytime working hours in a different manner, if the employer and the employee agree to this. However, each employee's daytime work must always be carried out with a continuous work schedule each day and never begin before 07:00.

An employee hired part-time receives hourly pay for work in excess of their work quota, daytime work during the daytime working period, overtime outside the daytime working period and on contractual holidays, and major holiday pay for work on major holidays.

Employees who are called to work occasionally (not required to work) receive hourly pay, daytime work during the daytime working period, shift pay for work outside the daytime working period according to Art. 3.2.1, holiday pay according to Art. 3.2.2. to 3.2.3. in the collective agreement, as applicable, up to 40 hours per week on average, and overtime pay according to Art. 3.2.4. after full work hours.

2.2.1. Contractual overtime begins when the agreed daytime work is completed, 7 hours and 25 minutes of active working hours during the period 07:00 to 17:00, Monday - Friday or 40 hours per week, cf. Art. 2.1.1. - 2.1.2.

2.2.2. For work in excess of 40 hours per week, work on Saturdays, Sundays and contractual holidays, overtime pay and major holiday pay for work on major holidays are paid.

2.2.3. If work is done during lunch and coffee breaks during the daytime working period, it will be paid at overtime pay.

New Year's Day.

Good Friday.

Easter Sunday.

Pentecost.

June 17th.

Christmas Eve after 12:00.

Christmas Day.

New Year's Eve after 12:00.

Epiphany.

Another one at Easter.

The first day of summer.

May 1st.

Ascension Day.

Another in Pentecost.

First Monday in August.

Another one at Christmas.

Working hours shall be arranged so that in each 24-hour period, calculated from the beginning of the working day, the employee receives at least 11 hours of uninterrupted rest. If possible, daily rest shall extend to the period between 23:00 and 06:00.

It is prohibited to organize work so that working hours exceed 13 hours.

In special circumstances, when valuables need to be saved, a work cycle may be extended to up to 16 hours, and an 11-hour rest period shall be provided immediately following the work without any reduction in the right to a fixed daily wage.

In cases where special circumstances make it unavoidable to deviate from the daily rest period, the following applies: If employees are specifically asked to report to work before 11 hours of rest are reached, the rest may be postponed and granted later, so that the right to take time off, 1½ hours (daytime work), accumulates for each hour that the rest is reduced. It is permissible to pay out ½ hour (daytime work) of the right to take time off if the employee so requests. In all cases, it is not permitted to reduce eight hours of continuous rest.

If an employee works so long before a holiday or weekend that 11 hours of rest are not achieved based on the usual start of the working day, this shall be treated in the same way. If an employee comes to work on a holiday or weekend, overtime pay for the time worked shall be paid without further additional payments for this reason.

The above provisions do not apply to regular shift rotations, however, in which case the rest period may be shortened to up to eight hours.

Accumulated time off entitlements as stated above shall be stated on the pay slip and granted in half and full days outside of peak hours in the company's operations in consultation with employees, provided that the accumulated time off entitlements are at least four hours. Upon termination of employment, an employee's unused time off entitlements shall be settled and considered part of the employment period.

Without the employee's consent, it is not permitted to organize work in such a way that accumulated leave entitlement is taken during times when the employee is traveling on behalf of the employer or working away from home/place of residence, except as a normal continuation of the accumulation.

In each seven-day period, an employee shall have at least one weekly day off that is directly related to the daily rest period, and it shall be assumed that the week begins on Monday.

As far as possible, the weekly holiday shall be on Sunday and, as far as possible, all those working for the same company or at the same permanent workplace shall be given a day off on that day. However, a company may, by agreement with its employees, postpone the weekly holiday, where special reasons make such a deviation necessary. If there is a special need to organize work so that the weekly holiday is postponed, a collective agreement shall be concluded on this. In such a case, the taking of holidays may be arranged so that two holidays are taken together every other weekend (Saturday and Sunday). If, on the other hand, holidays fall on weekdays due to unforeseen circumstances, this does not affect the employees' right to fixed wages and shift allowances.

If an employee, at the request of a company, is required to travel internationally on unpaid holidays, he shall, upon returning home, be granted leave equivalent to 8 daytime working hours for each day of holiday thus lost, provided that this was not taken into account when determining wages. The taking of these days of holiday shall be governed by the same procedure as determined in the chapter on minimum rest and taking of days off.

An employee is entitled to a break of at least 15 minutes if their daily working hours exceed six hours. Coffee and meal breaks are considered breaks in this context.

2.4.6. With regard to the scope of application, rest periods, work breaks and more, reference is made to the agreement between ASÍ and VSÍ dated 30 December 1996 on certain aspects concerning the organisation of working hours, which is attached to this agreement as an annex and is considered part of it and is identical to the agreement between ASÍ and VMS. The above provisions are intended to supplement Article 13 of that agreement.

2.5.1. Each started hour of requested overtime work is paid as half an hour and a full hour if worked for more than half an hour. 2.5.2. Employees shall report to work punctually, whether work begins in the morning or after a coffee and/or lunch break. Employees shall be recorded in working hours and shall receive payment for the quarter of an hour for which they are recorded.

If an employee arrives late for work, he has no claim to compensation

the quarter of an hour he arrives at nor before the time that is previously

passed.

Payments may be made at workplaces where there is a time clock based on the time spent at work.

2.5.3. If employees need to change clothes, they must do so on their own time before working hours begin and after working hours end.

An employee who changes his working hours at the employer's request or with his consent, from part-time to full-time work, or from full-time to part-time work, shall enjoy all contractual and statutory rights in cases of illness and accident and to payment of additional holidays from the time he began work, based on seniority and in accordance with the changed working hours.

Further details regarding part-time employees are provided in accordance with the agreement between ASÍ and SA on part-time work and, as applicable, the Act on Part-Time Employees.

Staff must report legitimate absences as far in advance as possible.

It is permitted, by agreement between the employee and the employer, to accumulate days off due to overtime, in such a way that overtime hours are accumulated and taken off during the daytime working period, but the difference between daytime and overtime hours is paid at the next regular paycheck or is accumulated and taken off in its entirety during the daytime working period. The value of overtime hours worked shall be used as a basis. An agreement shall be made regarding taking off. The right to take off as described above that has not been exercised before 1 May each year or upon termination of employment shall be paid out according to the value of daytime working hours on the payment date. An agreement shall be made regarding taking off off and it shall be organized in such a way as to cause the least possible disruption to operations.

Two types of arrangements may be used:

a) Overtime hours may be accrued and overtime pay may be paid

Simple example: An employee's daily hourly wage is ISK 1,000 and the company pays ISK 1,800 in overtime. The agreement is that the next eight hours of overtime will be paid in such a way that the overtime bonus is paid out (ISK 1,800 -- 1,000 = ISK 800/hour) but overtime hours are accumulated. When an employee takes the leave, he keeps his daily wage (ISK 1,000) for eight hours. The amount of the overtime bonus must be taken into account if a special additional payment is only made. If an employee has a special additional payment that only applies to daily wages, this must be taken into account.

b) Hours worked may be accumulated in overtime and converted into daytime hours

Example: If an employee's overtime load is 80%, overtime hours worked may be converted into time off during the daytime working period so that one hour of overtime is equivalent to 1.8 hours of daytime work (4.44 hours of overtime is equivalent to 8 hours of daytime work). The ratio must be observed if the special additional payment is only applied to daytime wages.

There must be an agreement on taking time off and it must be planned in such a way as to cause the least possible disruption to operations.

It is permitted to assign standby shifts where the employee is required to be on call and to handle calls. Unless otherwise agreed in the employment contract, the following applies:

For each hour on call where an employee on duty is confined to his/her home, he/she will receive pay equivalent to 33% of the daytime working hour. On public holidays and major holidays according to Art. 2.3.1. and 2.3.2. the above-mentioned rate will be 50%.

For on-call duty where immediate response is not required from the employee but he is ready to work as soon as he is next available, 16.5% of the daily wage is paid for each hour on-call duty. On public holidays and major holidays according to Art. 2.3.1. and 2.3.2. the above-mentioned rate will be 25%.

For on-call duty, an employee shall be paid for the time worked, at least 4 hours, unless daytime work begins within two hours of arriving at work. However, on-call duty payments and overtime payments never coincide.

If an employee's home or mobile phone number is listed in a telephone directory by a company, the work that results from this must be taken into account when determining salary.

The collective agreement provides for the right to take time off if the rest period falls below 11 hours. The parties agree that this rule also applies if the rest period falls below 8 hours. in exceptional cases. \[2004\]

Employees in the tourism industry who wish to take unpaid leave over Christmas and New Year and who have obtained the approval of the relevant supervisor shall be paid daily wages in proportion to their employment rate on contractual holidays that fall on weekdays during the period in question. The employer's obligation to pay is subject to the employee having acquired the right to payment according to the provisions of Article 1.9.1 of the parties' collective agreement. \[2019\]

3.1.1. Shift work is permitted on all days of the week. If shifts are only worked five days a week within the time frame of 17:00 -- 08:00, the working week shall only be 38 hours. In such cases, it is permitted to work in half shifts, 20 hours a week (19 hours where the working week is 38 hours). 3.1.2. A shift shall not be longer than 12 hours and not shorter than 3 hours. Each shift shall be worked in a continuous whole and the employer shall be obliged to pay for the entire shift time, unless the employee wishes to take time off. 3.1.3. If an employee is employed to work shifts, this shall be stated in his employment contract or by written agreement. The employment contract shall provide for a working ratio in accordance with the shift table, cf. Art. 3.1.5.1. or 3.1.5.2. for the next 4 or 2 weeks from employment. It should be assumed that this work ratio can be changed by agreement between the employees and the company with one week's notice for at least two or four weeks at a time. 3.1.4. Shift allowance is paid up to 100% work

Shifts in this agreement refer to a predetermined work arrangement for employees. The duration of a shift shall be specified in the shift schedule, including the start and end of the shift. Work in excess of the specified working hours according to the shift schedule shall be paid with a shift surcharge for work outside the daytime working period according to Article 3.2.1, a surcharge on holidays according to Articles 3.2.2. to 3.2.3. in the collective agreement, as applicable, up to 40 hours per week on average, and overtime pay according to Article 3.2.4. after full work hours.

3.1.5. Shift list 3.1.5.1. Shifts must be planned for 4 weeks at a time and the shift schedule must be presented at least one week before it is to take effect. 3.1.5.2. Where operations are based to a significant extent on part-time employees, shifts may be scheduled for a shorter period of time, but not for a period shorter than two weeks, provided that the employment contract states that the employee agrees to that arrangement. 3.1.5.3. The shift register should be posted where staff have easy access to it. 3.1.5.4. Calling for extra shifts

Overtime shifts should be announced with as much advance notice as possible.

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

33% surcharge during the period 17:00 to 24:00 Monday to Friday.

45% surcharge during the period 00:00 to 08:00 every day including Saturdays and Sundays.

Special provisions for entertainment venues, pubs and dance halls

A 55% surcharge is paid during the period from 24:00-05:00 on the night before Saturday and Sunday.

Work on Epiphany, Easter Monday, the first day of summer, May 1, Ascension Day, Pentecost Monday, the first Monday in August and Boxing Day is paid with a 45% surcharge on daytime wages.

Work on New Year's Day, Good Friday, Easter Sunday, Whitsun, June 17, Christmas Eve after 12:00, Christmas Day and New Year's Day after 12:00 is paid with a 90% surcharge on daytime wages.

For work exceeding 40 hours (38 hours if daily working hours are between 5:00 PM and 8:00 AM) on average in shift work per week, overtime pay shall be paid.

3.2.5. If an agreement has been made on a changed arrangement for bonus payments according to Article 5.12. in the collective agreement, it shall apply instead of shift bonuses according to Article 3.2.1. and shall apply equally to those employees who are working when the agreement is approved according to the provisions of this chapter as well as to those who start work later.

3.3.1. Refreshment breaks shall be equivalent to 5 minutes for each hour worked and shall be divided according to agreement between employees and the manager.

3.4.1. Employees who work shift work earn 12 winter holidays based on annual employment, for weekends and bank holidays according to Art. 2.3.1. and 2.3.2., which fall on Mondays to Fridays. 3.4.2. If the workplace is closed on the above-mentioned days or a day off is granted, the corresponding number of days is deducted from the additional days off, except for an employee who has earned shift leave. The employer shall notify the granting of winter holidays with at least one month's notice. 3.4.3. Winter holidays shall be granted during the period from 1 October to 1 May. The accrual of winter holidays is based on October to October. 3.4.4. It is permitted by agreement between the employer and the employee to pay in lieu of the said holidays, 8 hours of daytime work for each day off based on full-time work. Temporary employees will have their earned winter vacation days settled upon termination of employment. Winter holiday explanation box

The main rule is that employees take paid winter leave.

It is permitted, by agreement between the employer and employee, to apply a different settlement rule for special holidays/major holidays for shift workers.

Instead of winter holidays, shift workers may be paid 8 hours.

daytime work (including full-time work) for each special holiday/major holiday that falls on a weekday. Part-time employees are paid in accordance with their work rate.

The payment rule applies both when an employee works on a holiday/major holiday (on a weekday) and when an employee is on earned shift leave (on a weekday) and has thus fulfilled their full work obligation in accordance with their work ratio.

The right to payment therefore does not depend on whether an employee works on the special holiday/major holiday, but rather on whether he has completed his full work obligation in the week in question, in accordance with his work ratio.

See attached document on page 80 regarding winter leave for shift workers.

Shifts shall be arranged so that permanent employees who have scheduled shifts on weekdays and weekends have a weekend off at least every third weekend on average over the past three months.

4.1.1. Coffee breaks during daytime work shall be two, totaling 35 min. and shall be counted as working hours. 4.1.2. Lunch break shall be ½ hour during the period 11:00 -- 14:00 and shall not be counted as working hours.

Employees who work between 18:00 and 08:00 shall be given a coffee break of 5 minutes for each hour, which shall be taken every three hours and shall be considered working time. (These coffee breaks apply to people on extra shifts and part-time workers. Permanent employees take coffee breaks in accordance with Article 4.1.1.).

If it is not possible to provide meal time according to Article 4.1, it shall be paid.

4.4.1. If overtime is worked until 19:00 or longer, a ½ hour meal break shall be granted during the period 17:00 -- 20:30, which shall be considered working time. If it is worked or part of it, a correspondingly longer working time shall be paid. 4.4.2. If overtime is worked at night, a ½ hour meal break shall be granted during the period 03:00 - 05:00. This meal break and all coffee breaks shall be considered working time. If they are worked, a correspondingly longer overtime shall be paid. 4.4.3. It is not permitted to deregister people from work when it is time for a coffee or meal break during overtime (excluding dinner time). In such cases, those coffee and meal breaks shall be paid in addition to the time worked. 4.4.4. The length of breaks on weekends shall be determined in the same way as on weekdays.

4.5.1. The employer shall provide meals to employees during working hours free of charge. Where hot food is not available and/or an employee works outside of the traditional meal times, he shall be offered bread with butter and milk, coffee or tea.

When employees are sent to work outside the workplace, travel and accommodation shall be free of charge.

4.5.3. Travel expenses

The employer pays employees an amount equivalent to 2½ taxi starting fares during the hours of the day when scheduled buses do not operate, when the employee needs to get to and from work. However, the employer may transport its employees at its own expense, if it so wishes, provided that there are rules regarding transportation arrangements.

When employees are sent to work outside of their workplaces or between workplaces during their working hours, travel and subsistence shall be free of charge to the employee.

4.5.4. Traveling to and from work at night

If a work shift ends after midnight, or work must begin before 08:00, the employer must provide accommodation in a room with a made-up bed or transportation, or pay an amount equivalent to 2½ times the starting fare of a taxi.

4.5.5.1. If an employee uses his own vehicle at the employer's request, he is entitled to payment. Payment is based on kilometers driven for the employer's benefit. Unless otherwise agreed with the relevant trade union, the amount per km. shall be the same as determined by the State Travel Expenses Committee at any given time. 4.5.5.2. In the case of home deliveries within urban areas, the employer and the employee who provides the vehicle are permitted to agree on a fixed amount of króna for each delivery. 4.5.6. If there is a dispute about what constitutes a normal cost, reference shall be made to the calculation by the Icelandic Automobile Owners' Association (FÍB) of the cost of operating vehicles of the type used.

Per diem payments to employees for travel abroad follow the decisions of the State Travel Expenses Committee unless the company has specific rules for paying travel expenses.

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

A company agreement concluded on the basis of this chapter is not a collective agreement, as employers' associations and trade unions are not parties to the agreement. Regarding the involvement of these parties in the conclusion of the agreement, reference is made to Article 5.5.

The objective of the company-level collective bargaining agreement is to strengthen collaboration between employees and managers in the workplace with the aim of creating the conditions for improved employee conditions through increased productivity.

The goal is to develop collective agreements so that they benefit both parties to an increased benefit. Among other things, the aim is to achieve shorter working hours with the same or greater production. This should always be based on the assumption that defined benefits are shared between employees and the company according to clear criteria.

As a rule, a company component covers all employees covered by the collective bargaining agreements of the companies concerned. However, special agreements may be made at individual, specific workplaces, if agreed upon.

Negotiations on the company aspect are conducted under the peace obligation of general collective agreements and must be initiated by agreement of both parties. It must then be stated in writing who the agreement is intended to reach.

Once negotiations have been decided, the relevant trade unions and employers' organizations are notified.

It is right for both parties, employees and company representatives, to seek advice from the contracting parties. The parties may individually or jointly decide to summon a representative of the contracting party to the ministry during the conclusion of the agreement, immediately after negotiations have been decided.

Union representatives shall be responsible for representing employees in negotiations with company management. The representative of the relevant union shall have full authority to sit on the negotiating committee. The union representative shall be authorized to have two to five additional members elected to the negotiating committee, depending on the number of employees, and they shall then form a joint negotiating committee.

Shop stewards and elected representatives on the bargaining committee shall be guaranteed reasonable time to prepare and conclude agreements during working hours. Furthermore, they shall enjoy special protection in their work and may not be made to pay for their work on the bargaining committee. Thus, they may not be dismissed because of their work on the bargaining committee.

In workplaces where shop stewards are members of two or more trade unions, they shall jointly represent the employees in cases where the company agreement affects their position. In such circumstances, care shall be taken to ensure that a representative for all relevant professions participates in the negotiations, even if the negotiating committee may be enlarged as a result.

Where shop stewards have not been appointed, the relevant employee union may seek the election of a bargaining committee.

Before entering into a company agreement, managers must inform shop stewards and others in the bargaining committee about the company's status, future prospects, and personnel policy.

A shop steward has the right to information about wages at the workplace he represents to the extent necessary to enforce the provisions of the company agreement.

During the term of the company agreement, shop stewards shall be informed of the above-mentioned issues and operational priorities twice a year. They shall maintain confidentiality regarding this information to the extent that it is not for public discussion.

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

An agreement concluded on the basis of this chapter shall be accessible to the employees of the company concerned. It is prohibited to disclose its contents to unauthorized persons.

It is permitted, by agreement within the company, between employees and the company, to adapt the provisions of the agreement to the needs of the workplace with deviations regarding the following aspects, provided that an agreement is reached on the remuneration of the employees.

a\) Flexible daytime working hours. It may be agreed that

The daytime working period will be from 07:00 -- 19:00.

> b\) Four-day workweek. It is permissible to complete a full weekly

work shifts during the day on four working days when the law or others

contracts do not prevent this.

> c\) Shift work. Shift work may be undertaken with at least two

weeks' notice. Shift periods shall not be less than one month at a time.

> d\) Overtime work on a daily basis. It is permitted to shift part

overtime workload on a daily basis.

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

overtime hours and take leave for the same number of hours instead

on weekdays outside the company's peak hours. The overtime hours come

for accumulation and paid later during daytime work than the overtime bonus is

paid out.

> f ) Consumption breaks. It is permissible to negotiate a different arrangement for consumption breaks than

stated in the main collective agreement.

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

activities or close on certain days outside of business hours.

> h\) Performance-based pay systems. Performance-based pay systems may be developed

a wage system without formal work studies where it is deemed appropriate

both parties.

> i\) Shifting of Thursday holidays. This may be negotiated at

workplace to take contractual leave due to Ascension Day and

the first day of summer, both of which are always on Thursdays, is moved to

another weekday, e.g. Friday or Monday, or in connection with another day off

employees.

Deviations from the general rules of the collective agreement beyond the above limits are only permitted with the approval of the relevant trade union and employers' association.

If an agreement is reached on adapting the provisions of a collective agreement to the needs of the company or other deviations from the agreed work structure, an agreement shall also be reached on the employees' share of the benefits that the company derives from the changes.

The employee's share may be expressed in a reduction in working hours without a corresponding reduction in income, payment of a fixed amount per month or quarter, a skill bonus, a percentage bonus on salary or a fixed króna figure on hourly wages or in another way, depending on how it is agreed. However, the agreement must clearly state what the company's benefit consists of, as well as the remuneration to the employees. Both of these are deviations from the collective agreement and may be terminated upon termination according to Art. 5.9.

An agreement on a company aspect shall be in writing and shall be submitted to all those intended to be covered by the agreement in a secret ballot conducted by the relevant employee bargaining committee. An agreement shall be deemed approved if it receives the support of a majority of the votes cast. The relevant trade union shall ensure that the agreed deviations and the compensation for them, assessed as a whole, comply with the provisions of the law and collective agreements on minimum wages. If no notification to the contrary has been received within four weeks, the agreement shall be deemed approved by both parties.

A company agreement may be temporarily valid for a trial period of up to six months and then definitively terminated in light of experience. Otherwise, the term of validity shall be indefinite. After one year, either party may request a review. No later than two months after the entry into force of the main collective agreement, the parties shall enter into negotiations on the review and renewal of the agreement on the company section. If no agreement on changes is reached within two months, either party may terminate the company agreement with six months' notice, effective at the end of the month. After that time, both the agreed changes and the employees' share of the benefits shall lapse. For termination to be binding, it must receive the support of a majority of the employees concerned in the same type of voting as was used when the agreement entered into force. If the employer terminates the company section of the agreement, the wage increases associated with it shall only be reversed to the extent that they correspond to the additional costs resulting from the adoption of the previous agreement provisions.

Changes to employment terms that may result from a company agreement are binding on all employees concerned if they have not formally objected to the conclusion of the agreement with company management and the employee bargaining committee before the vote.

The provisions of a company agreement apply equally to those employees who are employed when the agreement is approved in accordance with the provisions of this chapter, as well as to those who start work later, provided that they were introduced to its contents upon employment.

Based on majority approval in a vote, employees have the right to negotiations on a reduction in working hours to 36 active working hours per week, as a rule, in parallel with the abolition of coffee breaks during the daytime working period, according to Chapter 3 of the collective agreement. Company managers can also request negotiations.

During the discussions, proposals will be made on break arrangements with the aim of achieving mutual benefit and improving the utilization of working hours where possible.

If formal coffee breaks are abolished, the benefits of improved utilization of working time and increased productivity are shared between employees and the employer, with the employee's share consisting of an additional reduction in active working hours:

Additional reduction of active working hours:

If an agreement is reached to cancel the coffee break, the effective working hours will be 36 hours per week, without any reduction in monthly salary. Arrangements for reducing effective working hours can be implemented in many ways, for example:

1. Flexible rest breaks from work are taken, one or more. 2. Lunch break extended. 3. Each working day shortened, an agreed number of working days shortened or one > day of the week shortened. 4. Shortening accumulated into full or half days of vacation. 5. Mixed route.

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

The entry into force and voting of an agreement shall be governed by Article 5.9.


Based on majority approval in a vote, employees have the right to negotiations on a change in shift surcharge payments according to Article 3.2.1. of the collective agreement. Company managers may also request negotiations.

Instead of shift pay according to Art. 3.2.1. of the collective agreement, the following will be paid:

a) Shift pay on top of all hours worked per 24 hours up to 100% of the work per month instead of the pay according to Art. 3.2.1. of the collective agreement. The shift pay is based on the average shift pay in the company over the last 12 months at the end of the month. If special circumstances exist that indicate that a different time standard should be used, for example due to changes in regular opening hours, this shall be done.

Average shift load is determined by taking the total number of hours worked per

the period for all employees working under the collective agreement at

different peak periods.

b) Daytime work load on top of all hours worked in the period from 8:00 -- > 17:00 on weekdays, but in return a different shift load than that specified in Art. 3.2.1. in the collective agreement for work outside the daytime working period is paid, as agreed by the parties. When calculating the shift load, it is taken into account that the average shift load will remain unchanged from what it has been for the last 12 months in the company at the end of the month, unless special circumstances indicate that a different time standard should be used.

Example:\

The average shift load is 24% in a company that is not open 24:00

-- 08:00 assuming that 40% of the total working hours of the staff are worked at

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

on weekends. In such a case, it would be possible to hold an election there

which advantages would be, for example:

> i\. a 6.25% surcharge is paid during the period 8:00 -- 17:00 on weekdays but

30% surcharge during the period from 17:00 -- 24:00 on weekdays but 40% on

weekends from 8:00 -- 24:00.

> ii\. a 13.5% surcharge would be paid during the period 8:00 -- 17:00 on weekdays

but 31% surcharge during the period from 17:00 -- 24:00 on weekdays and on

weekends from 8:00 -- 24:00.

> iii\. an average shift surcharge of 24% would be paid on top of all paid hours.

> You may vote for any option that leaves the outcome unchanged

average shift load.

If the fundamental assumptions underlying the agreement change, for example the company's regular opening hours and permanent staffing from what was the case when the shift load was determined, either party may individually demand that the shift load be revised in light of the changed assumptions, and the change shall take effect from the beginning of the month following the written request for such.

A prerequisite for a corporate element to take effect is that representatives of the contracting parties are offered full access to negotiations, are notified of negotiations, and are given the opportunity to review the data on which the calculations are based.

A trade union must confirm in writing that a proposal is based on correct calculations and meets the requirements according to options a or b above and respond to a request for confirmation within 4 weeks of its verifiable receipt.

If written confirmation is received or the union does not respond within the aforementioned time limits, an election may be held. If the union refuses confirmation, a reasoned explanation must be provided.

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

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

In other respects, the entry into force and voting of the agreement shall be governed by Article 5.9.

If an agreement cannot be reached at the workplace on a reduction in working hours according to Article 5.11, both employees and the employer are entitled to refer the dispute to the contracting parties, the relevant trade union and the Confederation of Icelandic Employers.

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

If no agreement is reached on the assessment of the effects of termination pursuant to the final sentence of the 2nd paragraph of Article 5.9., either party may refer it to an independent body agreed upon by the parties. 65% of the costs are paid by the company and 35% by the employees.

The minimum holiday shall be 24 working days. Holiday pay shall be 10.17% of the total wage, whether for daytime work or overtime.

Effective from 1 May 2024 (leave to be taken in the leave year beginning 1 May 2025). An employee who has reached the age of 22 and has worked for 6 months in the same company shall be entitled to 25 days of leave and holiday pay of 10.64%.

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

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

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

Similarly, employees who have worked for the same company for 10 years are entitled to 30 days of vacation and 13.04% vacation pay. Vacation entitlement is calculated from the beginning of the next vacation year after the above-mentioned period of employment is reached.

An employee who has received increased vacation entitlement due to employment with the same company will regain it after three years with a new employer, provided that the entitlement has been a fact.

Summer vacation is four weeks, 20 working days, which must be granted during the period May 2 - September 30.

Vacation in excess of 20 days may be granted outside the defined summer vacation period of May 2 to September 30, unless otherwise agreed. If an employee requests to take vacation outside the aforementioned period, this must be accommodated to the extent possible due to the business.

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

Trade unions may negotiate with individual employers that holiday pay is paid uniformly into employees' special holiday accounts in a bank or savings bank. Such an agreement shall ensure that the party that assumes custody of holiday pay pays the employee the holiday pay earned, i.e. principal and interest, at the beginning of the holiday. A copy of such an agreement shall be immediately submitted to the Ministry of Social Affairs and notification of its termination shall be given.

If an employee becomes seriously ill while on leave in Iceland, in a country within the EEA, Switzerland, the United States or Canada, and is unable to take the leave, he or she must notify the employer on the first day, for example by telegram, e-mail or in another verifiable manner, unless force majeure prevents this, but then as soon as the condition improves.

If the employee complies with the notification requirement, if the illness lasts longer than 3 days and he notifies the employer within that period of which doctor is treating him or will issue a medical certificate, he is entitled to compensatory leave for the same period as the illness verifiably lasted. Under the above-mentioned reasons, the employee must always provide proof of his illness with a medical certificate. The employer has the right to have a doctor visit an employee who has fallen ill during leave. Compensatory leave shall, as far as possible, be granted at the time requested by the employee during the period from 2 May to 15 September, unless otherwise specified. The same rules as those stated above apply to accidents during leave.

6.5.1. Vacation is otherwise subject to the provisions of the law on vacation at any given time. 6.5.2. Upon the death of an employee, his or her earned vacation shall be paid to his or her estate by deposit into a salary account or in another manner. 6.5.3. According to Article 7 of the Vacation Act No. 30/1987, vacation is not permitted to be paid out simultaneously with salary.

When recruiting staff, members of the relevant union shall represent the employer in the matter, provided that all staff have easy access to the union. However, members of the relevant union undertake not to accept work in restaurants and accommodation establishments for companies other than those within the Icelandic Restaurants and Accommodation Association, if they are short of staff, provided that the companies have notified the relevant union of this.

Workplaces shall have available for use by employees the safety equipment that the Icelandic Occupational Safety and Health Administration deems necessary due to the nature of the work, or is specified in a collective agreement, cf. the Act on Working Environment and Hygiene.

Employees are required to use the safety equipment mentioned in collective agreements and regulations, and supervisors and shop stewards must ensure that it is used.

8.3.1. If an employee does not use the safety equipment provided to him at the workplace, he may be dismissed from his job without notice after having given him written warning. The employee's shop steward shall immediately ascertain that the grounds for dismissal have existed and shall be given the opportunity to familiarize himself with all the facts of the case. If he does not agree with the grounds for dismissal, he shall object to the dismissal in writing, in which case dismissal without notice shall not be implemented. 8.3.2. Violations of safety regulations that endanger the life and limb of employees shall be subject to dismissal without prior warning, if the shop steward and the company representative agree on this. If the safety equipment specified in collective agreements and which the Icelandic Occupational Safety and Health Administration has instructed to be used is not available at the workplace, any employee who is not provided with such equipment may refuse to work in the jobs where such equipment is required. If there is no other job for the employee in question, he or she shall retain his or her salary. 8.3.3. In the event of a dispute regarding this contractual provision, the matter may be referred to the Standing Committee of ASÍ and VSÍ.

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

Restrictions placed on the work and working hours of young people are governed by Chapter X of the Act on Conditions, Hygiene and Safety at Work No. 46/1980 and the Regulation on the Work of Children and Young People No. 426/1999.

When important information needs to be communicated to employees, such as regarding safety issues, work arrangements, changes in the workplace or issues concerning individual employees, the employer shall strive to have interpretation available for those employees who need it.

8.7.1 Employees shall always be allowed to make suggestions and complaints about violations of the law or other reprehensible conduct related to workplace conditions and safety that may affect the health and safety of employees. 8.7.2 In workplaces where a safety representative or shop steward has been elected, he or she acts as an intermediary in communicating suggestions and complaints from colleagues about workplace safety and conditions to the employer. Where there is neither a shop steward nor a safety representative to distribute at the workplace, an employee may communicate their suggestions to their immediate superior. 8.7.3 Following an employee's suggestion, the superior shall verify whether the suggestion is justified as soon as possible. If no action is taken, the employee may turn to the managing director or human resources manager (if available) with their suggestions. 8.7.4 If it is found that the employee's suggestions are justified and made in good faith, the supervisor shall act as soon as possible and make the necessary improvements, taking into account good working practices and the obligations incumbent on the employer under the Occupational Safety and Health Act. The employee may request information on the progress of the case. 8.7.5 The employer shall ensure that the employee is not made to pay in the workplace for having made a legitimate suggestion about a violation of the Occupational Safety and Health Act or other reprehensible conduct related to the facilities and safety at the workplace that may affect the health and safety of employees.

The Confederation of Icelandic Employers will issue guidelines on procedures for dealing with employee complaints about safety or conditions in the workplace. This refers to violations of occupational health and safety laws or other reprehensible conduct related to working practices or conditions in the workplace that may affect the health and safety of employees. The guidelines aim to promote a good workplace and reduce employees' concerns about making such complaints.

The guidelines are written and provide for the receipt, handling and processing of complaints. It is recommended that companies follow them and that they be accessible to all employees.

These guidelines will be completed and presented no later than June 1, 2024.

Employees shall, during each 12-month period, retain wages for absences due to accidents and illnesses as follows:

9.1.1. During the first year of employment with the same employer, two days of substitute pay are paid for each month worked. 9.1.2. After one year of continuous employment with the same employer, one month of substitute pay is paid. 9.1.3. After two years of continuous employment with the same employer, one month of substitute pay and one month of day wages are paid. 9.1.4. After three years of continuous employment with the same employer, one month of substitute pay and two months of day wages are paid. 9.1.5. After five years of continuous employment with the same employer, one month of substitute pay, one month of full day wages (i.e. day wages, bonuses and shift premiums, cf. Article 9.3.2) and two months of day wages are paid. 9.1.6. An employee who has acquired 4 months of sick leave entitlement after five years of continuous employment with the same employer and who is hired by another employer within 12 months retains two months of sick leave entitlement (one month at substitute pay and one at day-time pay) provided that the termination of employment with the previous employer was normal and the entitlement has been verified. A staff member acquires a better entitlement after three years of continuous employment with a new employer, cf. Art. 9.1.4. 9.1.7. The sick leave entitlement is a total entitlement for each 12-month period regardless of the type of illness. Explanation:

Sickness entitlement is based on paid sick days in a 12-month pay period. When an employee becomes unable to work, the number of days paid in the last 12 pay months is taken into account at the start of the illness and deducted from the accrued sick leave entitlement. If an employee has been without pay for a period, that period is not included in the calculation.

9.2.1. If an employee is absent due to an accident at work or on the way to or from work, as well as if an employee falls ill from an occupational disease, he shall, in addition to the right to sick pay, retain his daily wages for three months.

The above right is an independent right and does not affect the employee's sick leave entitlement.

Daily allowances from Icelandic Health Insurance for these days go to the employer.

Explanation:

Incapacity for work caused by an accident can occur either immediately after the accident or later. Proof and causation are governed by general rules.

9.2.2. In the event of an accident at work, the employer pays for the transport of the injured person to home or hospital and then pays normal medical expenses while he receives wages other than those paid by the Icelandic Health Insurance. The injured person shall submit receipts for the expenses incurred to the employer and payment shall be made in parallel with salary payments, cf. Art. 9.4.

In terms of medical and transportation costs, accidents on the direct route to and from work are considered occupational accidents.

9.3.1. Replacement pay is based on the pay that an employee would have demonstrably received if he had not been absent from work due to illness or accident, other than bonuses due to special risk, hardship or uncleanliness in the performance of specifically specified work and attendance bonuses. 9.3.2. Full-time day wages are fixed wages for day work plus shift bonuses, bonuses and other performance-enhancing or comparable bonuses for work based on 8 hours per day or 40 hours per week based on full-time work. 9.3.3. Daytime wages are fixed wages based on day work (without bonuses and any kind of bonuses) for 8 hours per day or 40 hours per week based on full-time work.

9.4.1. Payments of wages in cases of illness and accident shall be made in the same manner and at the same time as other wage payments, provided that a medical certificate has been received in time for wage calculations. 9.4.2. If there is a dispute about the employer's liability for compensation, according to Article 9.2., the decision shall be based on whether the State Accident Insurance considers it obliged to pay compensation for the accident. 9.4.3. Medical certificate

An employer may require a medical certificate regarding an employee's illness.

The employer pays for a medical certificate provided that the illness is immediately reported to the employer on the first day of illness, and that employees are always required to submit a medical certificate.

9.5.1. During the first 6 months of employment with an employer, a parent is entitled to two days for each month worked to care for their sick children under the age of 13, provided that no other care is available. After 6 months of employment, the entitlement increases to 12 days in each 12-month period. The parent retains their daily wages, as well as shift allowances where applicable.

With reference to the rules on payments due to children's illness, it is the common understanding of the parties that a parent also refers to a foster parent or guardian, who is the child's provider and then replaces the parent.

The same applies to children under the age of 16 when the illness is serious enough to result in hospitalization for at least one day.

9.5.2. An employee is entitled to leave from work in the event of force majeure and urgent family reasons due to illness or accident that require the employee's immediate presence.

An employee is not entitled to wages from the employer in the above cases, cf. however the provisions of Article 9.5.1.

Maternity and parental leave is governed by Act No. 144/2020 on the same subject.

Pregnant women have the right to necessary absences from work for antenatal check-ups without deduction from fixed wages if such check-ups need to take place during working hours.

9.7.1. Scope

Employers are obliged to insure employees covered by this agreement against death, permanent medical disability and/or temporary disability caused by an accident at work or on the normal route from home to work and from work to home, as well as from work to work during breaks. If an employee has a place of residence outside the home due to his work, the place of residence replaces the home, but the insurance also covers normal travel between the home and the place of residence.

Insurance is valid for domestic and international trips undertaken on behalf of an employer.

The insurance shall cover accidents that occur during sports activities, competitions and games, provided that such activities are carried out by the employer or an employee association and participation in such activities is expected as part of the employees' work. It is irrelevant in this respect whether the accident occurs during or outside normal working hours. Excluded are accidents that occur in boxing, any type of wrestling, motor sports, hang gliding, hang gliding, bungee jumping, mountain climbing that requires special equipment, abseiling, frog diving and skydiving.

The insurance does not pay compensation for an accident resulting from the use of motor vehicles that are subject to registration in Iceland and are subject to compensation under mandatory vehicle insurance, whether liability insurance or driver and owner accident insurance under the Traffic Act.

9.7.2. Effective date and end of insurance

The insurance becomes effective for an employee when he works for an employer (becomes on the payroll) and expires when he leaves the job.

9.7.3. Indexation and indexation of benefits

Insurance amounts are based on the consumer price index for indexation, which is valid from February 1, 2024 (608.3 points) and change on the 1st day of each month in proportion to the change in the index.

Compensation amounts are calculated based on insurance amounts on the date of the accident but are adjusted with the consumer price index for price indexation as follows:

Compensation amounts change in proportion to the change in the index from the date of the accident to the settlement date.

9.7.4. Death benefit

If an accident causes the death of the insured within three years of the date of the accident, the beneficiary will be paid death benefits less any benefits already paid for permanent medical disability due to the same accident.

Death benefits will be from February 1, 2024:

1. To the surviving spouse, compensation shall amount to ISK 10,762,562.

> A spouse refers to a person in a marriage, registered partnership or in a civil partnership

registered unmarried cohabitation with the deceased.

> 2\. To any minor child of whom the deceased had custody or

paid child support according to the Children's Act No. 76/2003, the benefits shall be

equal to the total amount of child pension according to the Social Security Act

at any time, to which it would have been entitled due to the death of 18 years

age. This is a lump sum benefit. When calculating the benefit, the following shall be taken into account:

to the amount of child pension on the date of death. However, benefits for each child shall

never less than an amount of ISK 4,305,025. Benefits for children shall

paid out to the person who has custody of them after the death of the insured.

To any young person aged 18-22 who had the same legal address as

the deceased and were demonstrably dependent on him, compensation shall be ISK.

1,076,256. If the deceased was the sole provider for a child or young person

increase benefits by 100%.

> 3\. If the deceased has proven to have provided for a parent or parents aged 67

or older, the surviving parent or parents shall jointly

receive compensation is ISK 1,076,256.

> 4\. If the deceased does not have a spouse according to point 1, a death benefit of ISK 100,000 is paid.

1,076,256 to the deceased's estate.

9.7.5. Compensation for permanent disability

Compensation for permanent disability is paid in proportion to the medical consequences of the accident. Permanent disability shall be assessed in points according to a scale of disability, published by the Disability Committee, and the assessment shall be based on the injured party's state of health as it is when it has become stable.

The basic amount of disability benefits is ISK 24,538,641. Benefits for permanent disability shall be calculated so that for each disability level from 1-25 ISK 245,386 is paid, for each disability level from 26-50 ISK 490,773 is paid, for each disability level from 50-100 ISK 981,546 is paid. Benefits for 100% permanent disability are therefore ISK 67,481,263.

Disability benefits shall also take into account the age of the injured party on the date of the accident, so that benefits are reduced by 2% for each year of age after the age of 50. After the age of 70, benefits are reduced by 5% of the basic amount for each year of age. However, age-based disability benefits shall never result in a reduction greater than 90%.

9.7.6. Temporary disability benefits

If an accident causes temporary disability, the insurance shall pay daily allowances in proportion to the loss of working capacity for four weeks from the time the accident occurred and until the employee becomes fit for work after the accident or until a disability assessment has been carried out, however, for no longer than 37 weeks.

Daily allowance for temporary disability is ISK 53,813 per week. If an employee is partially able to work, daily allowance is paid proportionally.

Daily allowances from insurance are paid to the employer while the employee is being paid wages according to the collective agreement or employment contract, and then to the employee.

9.7.7. Insurance obligation

All employers are required to purchase insurance from an insurance company licensed to operate in Iceland that meets the above-mentioned conditions of the collective agreement on accident insurance.

Other than as specified in this section of the contract, the terms and conditions of the relevant insurance company and the provisions of the Insurance Contracts Act No. 30/2004 shall apply to the insurance.

The parties agree that, in addition to illness and accidents, sick leave entitlement under this agreement will be activated if the employee needs to undergo urgent and necessary medical treatment to reduce or eliminate the consequences of an illness that is foreseeable to lead to incapacity for work.

The above definition does not constitute a change to the concept of illness in employment law as interpreted by the courts. However, the parties agree that measures that an employee must undergo to remedy the consequences of an accident at work will also result in the entitlement to sick leave under this agreement becoming effective.

The parties will direct the Minister of Health to advocate for a change in the rules on medical certificates. Special medical certificates will be required in the case of long-term absences. If an employee has been unable to work due to illness or accident for four consecutive weeks, the medical certificate shall state whether vocational rehabilitation is necessary to achieve or accelerate recovery. \[2008\]

10.1.1. Employees shall always be clean and neat. If employees are requested to wear special work clothing, a specific color or type of clothing, the employer shall provide such clothing as needed, free of charge to the employee. It shall be the property of the employer and used only during working hours.

In workplaces where special work clothing is required, it is prohibited to discriminate against employees on the basis of gender.

Where necessary, the employer shall provide employees with gowns, protective aprons and gloves as needed.

The employer shall be responsible for the maintenance and cleaning of the work clothing that he provides and is his property.

Doormen shall be provided with uniforms, which are the property of the company, which shall be responsible for their cleaning and maintenance as necessary. Doormen who are on guard duty outside the doors shall be provided with protective clothing depending on the circumstances, taking into account the weather.

If it is requested that a night guard wear uniforms, they must be provided in the same manner.

10.2.1. If an employee verifiably suffers damage to commonly necessary clothing and equipment in the performance of his work, such as watches, glasses, etc., this shall be compensated according to an assessment. 10.2.2. The same applies if an employee suffers damage to clothing caused by chemical substances, including dust binding agents (calcium chloride). 10.2.3. If employees suffer damage (loss of protective clothing, etc.) caused by a fire in the workplace, this shall be compensated according to an assessment.

Employers pay into the relevant company's health fund, which corresponds to 1% of all employee salaries, to cover illness and medical expenses.

11.2.1. Employers pay 0.25% of the same amount into the vacation home fund of the company in question. 11.2.2. Trade unions are permitted to negotiate with pension fund boards on the collection of sick leave and vacation home fund fees in parallel with pension fund contributions.

Employers pay 0.3% into the relevant vocational training fund; Starfsfals -- vocational training of the Confederation of Icelandic Employers and the Gulf Confederation.

In other respects, reference is made to the agreement on vocational education.

11.4.1. The agreement between the Icelandic Confederation of Trade Unions and the Employers' Association on pension funds dated 19 May 1969, together with subsequent amendments, shall apply between the parties as appropriate, as well as the agreement between ASÍ and VSÍ on pension matters from 12 December 1995. 11.4.2. The employee pays a 4% contribution to the pension fund of all wages and the employer in the same way 11.5%. 11.4.3. Additional contributions to pension savings 11.4.3.1 If the employee makes at least 2% additional contribution to a pension fund (joint or private fund), the employer's matching contribution shall be 2%.

11.5.1. Employers pay a premium to the Virk -- Occupational Rehabilitation Fund, cf. Act No. 60/2012.

Employers undertake to collect the membership fees of the main and secondary members of the relevant trade union in accordance with the rules of the union, whether it is a percentage of wages or a fixed fee. These fees are returned monthly to the union and the deadline is the last working day of the following month. Membership fees may be returned at the same time as pension fund fees.

There is no notice period for the first two weeks of employment.

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

12 calendar days.

> After 3 consecutive months with the same employer:\

1 month from the beginning of the month.

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

2 months from the beginning of the month

> After 3 consecutive years with the same employer:\

3 months from the beginning of the month.

The notice period is mutual.

The provisions of Article 13.1. fully replace the provisions of Article 1. of Act No. 19/1979 on notice periods.

13.2.1. General information about termination

The notice period is mutual. All notices of termination must be in writing and made in the same language as the employee's employment contract. [^3]

13.2.2. Interview about reasons for dismissal

An employee has the right to an interview regarding his/her termination of employment and the reasons for the termination. A request for an interview must be made within four days of receiving the termination notice, and the interview must take place within four days of that date.

An employee may request that the reasons for termination be explained in writing immediately after the interview or within four days. If the employer agrees to his request, this must be done within four days of that date.

If the employer does not agree to the employee's request for written explanations, the employee has the right, within four days, to another meeting with the employer about the reasons for the dismissal in the presence of their shop steward or another representative of their union, if the employee so requests.

13.2.3. Limitation of termination rights according to law

When dismissing employees, legal provisions that limit the employer's right to terminate employment must be observed, including provisions on shop stewards and safety representatives, pregnant women and parents on maternity leave, employees who have notified their employer of maternity or parental leave, and employees with family responsibilities.

The provisions of Article 4 of Act No. 80/1938 on Trade Unions and Industrial Disputes, the Act on Equal Status and Equal Rights for Men and Women, the Act on Part-Time Employees, the Act on the Legal Status of Employees in the Event of Transfer of Ownership to Companies, and the obligation to consult in the Act on Collective Redundancies must also be observed.

When an employee enjoys dismissal protection according to law, the employer must justify in writing the reasons behind the dismissal.

13.2.4. Penalties

Violations of the provisions of this chapter may give rise to compensation according to the general rules of tort law.

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

If an employee is dismissed after at least 10 years of continuous employment with the same company, the notice period is four months if the employee is 55 years old, 5 months if he is 60 years old, and 6 months when he is 63. However, an employee may resign with three months' notice.

Acquired rights according to Article 13.4 refer to all rights related to employment with the same employer according to this collective agreement, including vacation, sick leave and notice period.

13.4.1. An employee's accrued rights shall be maintained upon re-employment within one year. Similarly, accrued rights shall be reinstated after one month of employment if re-employment occurs after more than one year, but within three years. 13.4.2. An employee who has worked for one year or more continuously for the same employer shall similarly enjoy accrued rights again after three months of employment, if re-employment occurs after a break of more than three years, but within five years.

Acquired rights also remain in the event of a transfer of ownership to a company in accordance with the Act on the Legal Status of Employees in the Event of a Transfer of Ownership to a Company .

13.4.3. Rights acquired through work abroad

Foreign workers in Iceland, as well as Icelanders who have worked abroad, carry with them accrued working hours towards collective bargaining rights related to working hours in a profession, provided that the work abroad is considered comparable.

Employees shall, upon employment, provide proof of their employment period by means of a certificate from a former employer or by another equally verifiable means. If an employee is unable to present a certificate that meets the requirements of paragraphs 3 and 4 upon employment, he or she may submit a new certificate within three months of employment. The rights acquired shall then take effect from the beginning of the following month. The employer shall confirm receipt of the certificate.

The certificate from a former employer shall include, among other things:

\- Name and personal identification number of the employee in question.

> \- The name and identification of the company issuing the confirmation, along with

telephone, email address and name of the person responsible for its publication.

> \- A description of the work the person did.

> -When did the person start working at the company in question, when did he

ended their employment and whether, and when, there was a break in the person's employment.

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

According to the Maternity and Parental Leave Act No. 144/2020, maternity leave shall be counted as working time when assessing work-related rights, such as the right to take leave and extend leave according to collective agreements, seniority increases, sick leave rights and notice periods. The same applies if a woman needs to stop working during pregnancy for safety reasons, cf. the Regulation on measures to increase the safety and health at work of women who are pregnant, have recently given birth or are breastfeeding .

Maternity leave is considered time worked when calculating holiday entitlement, i.e. the right to take time off, but not holiday pay.

The parties agree that it is desirable that dismissals be directed only at those employees who are to be laid off, and not at all employees or groups of employees. In light of this, the parties have entered into the following agreement:

This agreement only applies to collective dismissals of permanent employees when the number of those resigning within a thirty-day period is:

At least 10 people in companies with 16-100 employees.

At least 10% of employees in companies with 100-300 employees.

At least 30 people in companies with 300 employees or more.

It is not considered a collective dismissal when employment is terminated under employment contracts concluded for a fixed period or for specific projects. This agreement does not apply to dismissals of individual employees, to dismissals for changes in terms of employment without termination of employment being planned, nor to dismissals of ship crews.

If an employer is considering collective redundancies, it shall, before the redundancies are made, consult with the representatives of the relevant trade unions to seek ways to avoid the redundancies as far as possible and to mitigate their consequences. Where representatives are not present, consultation shall be carried out with employee representatives.

Shop stewards shall then have the right to receive relevant information about the proposed layoffs, in particular the reasons for the layoffs, the number of employees to be laid off and when the layoffs will be implemented.

If, in the employer's opinion, collective redundancies cannot be avoided, even though the aim is to rehire some employees without termination of employment, the aim should be to make a decision on which employees will be offered rehire as soon as possible.

If a decision on re-employment has not been made and the employee is notified that re-employment cannot take place, in time for at least 2/3 of the employee's notice period to remain, his notice period is extended by one month if the notice period is three months, by three weeks if the notice period is two months, and by two weeks if the notice period is one month.

This provision applies to employees who have earned at least one month's notice period.

Notwithstanding the provisions of this article, it is permitted, due to external events beyond the employer's control, to condition the notification of re-employment on the employer being able to continue the activity for which the employee is employed without this leading to an extension of the notice period.

Collective redundancies are otherwise subject to the provisions of the Act on Collective Redundancies at any given time.

Employees are permitted to elect one shop steward at each workplace with 5 to 50 employees and two shop stewards if there are more than 50 employees. A workplace in this context is any company where a group of people work together. After the election, the relevant trade union shall nominate the shop stewards. If an election is not possible, shop stewards shall be nominated by the relevant trade union.

It is permitted to elect three shop stewards within a company if the number of members exceeds 120 at the same workplace.

Where a company has more than one establishment, or employees generally report to work at workplaces other than the headquarters of the employer in question, the shop steward should be given the opportunity to perform his shop steward duties at all establishments, or more shop stewards should be elected to perform those duties.

Trustees shall not be elected or nominated for a term longer than two years at a time.

Shop stewards at workplaces shall, in consultation with the foreman, be permitted to devote time as necessary to tasks that may be assigned to them by the workers at the workplace in question and/or the relevant trade union in connection with their work as shop stewards, and their wages shall not be reduced as a result.

If the nature of a shop steward's work is such that it is not possible for him to perform his shop steward duties during regular working hours, an agreement shall be made between the shop steward and the employer, at the shop steward's request, on the minimum time that the shop steward can have available to perform these duties. The agreement shall take into account the number of employees for whom the shop steward represents, the general scope of shop steward duties, the distribution of workplaces, shift arrangements and other relevant factors.

A shop steward or union representative shall be authorized, in connection with a matter of dispute, to review documents and work reports relating to the matter of dispute. Such information shall be treated as confidential.

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

A shop steward at each company shall be authorized to call a meeting with employees twice a year at the workplace during working hours. The meetings shall begin one hour before the end of the working day, as far 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 subject of the meeting is very urgent and directly related to problems at the workplace. In such cases, one day's notice shall suffice. The employee's salary shall not be reduced for this reason during the first hour of the meeting.

In workplaces where a shop steward has not been appointed, a union representative may call a meeting with employees at the workplace with the approval of the company's management. An effort shall be made to hold the meeting at a time that does not cause disruption to the company's operations. Therefore, the manager's approval of the meeting location and time shall be obtained before a meeting is called.

A shop steward shall raise employee complaints with the foreman or other company managers before contacting other parties.

Shop stewards in the workplace shall be given the opportunity to attend courses aimed at making them more competent in their work. Each shop steward has the right to attend one or more courses organised by the trade unions and intended to make shop stewards better able to cope with their work, for a total of one week per year. Those who attend the courses shall retain their daily earnings and shift work allowance for up to one week per year. In companies with more than 15 employees, shop stewards shall retain their daily earnings and shift work allowance for up to two weeks in the first year. This applies to one shop steward per year in each company if there are 5-50 employees, and two shop stewards if there are more than 50 employees.

If a shop steward course is organized so that the shop steward's absence from work does not exceed one day per week, shop stewards retain their daytime income and shift work for up to ten working days per year.

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

When collective bargaining negotiations are underway, members of SGS member unions who have been elected to negotiation committees are permitted to attend their meetings during working hours. The same applies to representatives at the annual meeting of ASÍ/SGS and representatives on joint committees of ASÍ/SGS and SA. Care must be taken to ensure that employee absences have the least disruptive effect on the operations of the companies they work for, and employees must consult with their superiors about absences as far in advance as possible. In general, it should be expected that no more than 1-2 employees from each company will attend. There is no obligation to pay compensation for the hours that an employee is absent.

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

Act No. 151/2006 on information and consultation in companies stipulates the employer's obligation to provide information and consult with employee representatives. The obligation to consult applies where there are generally at least 50 employees, cf. for further details the agreement between SA and ASÍ on information and consultation in companies. The law assumes that the shop steward is an employee representative.

15.1.1. If employees attend a course at the employer's request, the employer shall pay a course fee in addition to fixed wages if the course is attended during working hours. If the course is held outside of working hours, hourly wages shall be paid during daytime work for an equal duration of the course hours. 15.1.2. Employees may spend up to 4 daytime hours per year attending courses that are eligible for funding from Starfsafl/Landsmennt, without reduction in daytime wages, however, so that at least half of the total course hours are in their own time. The time for attending courses shall be chosen with regard to the company's operations. 15.1.3. The contracting parties shall each appoint three members to a committee, whose role is to organize and implement vocational training for the benefit of this sector of the economy. The committee shall seek cooperation with the Icelandic Business Education Centre and other education centres, institutions and ministries, as appropriate and desirable at any given time. The committee shall establish its own rules of procedure.

16.1.1. If a dispute arises between the contracting parties, the party that feels that it has been wronged shall file a complaint with the board of the other party. They shall investigate the points of dispute and resolve them, if possible. If the boards of both parties have not agreed on a final solution to the dispute within a week of the complaint being filed, the matter shall immediately be referred to a conciliation committee, which shall be composed in such a way that each party nominates one person and another as an alternate, the relevant district magistrate as the third, and these persons shall then attempt to settle the points of dispute. The committee shall have completed its work within seven days of the appointment of the third person.

The main objective of this agreement is to contribute to reducing inflation and lowering interest rates, which is a major concern for households and businesses. The agreement also aims to increase the purchasing power of workers, create predictability in the economy, reduce inflation expectations and strengthen the competitiveness of the Icelandic economy. This agreement also provides for a productivity increase for all workers, based on measured productivity, and a wage increase above the wage rate in collective agreements.

17.2. Contractual conditions

To strengthen the assumptions and goals of the collective bargaining agreements, a special wage and conditions committee will begin work immediately. The committee will be composed of four representatives nominated by SA and four nominated by the negotiating committees of the ASÍ member unions that are responsible for the common contractual conditions.

The committee's task is to monitor the progress of economic factors that may affect the objectives of the agreement, to formally assess the assumptions of the collective agreement and, where appropriate, to negotiate responses to the failure of assumptions that strengthen the assumptions of the agreement and contribute to its continued validity. Formal assessments of the agreement assumptions will take place in September 2025 and September 2026.

In September 2025, a decision shall be made on the following assumptions:

a\) The assumption is that 12-month inflation in August 2025 will not exceed 4.95%. However, this price level assumption is considered to have been met if inflation in the 6-month period from March - August 2025 is 4.7% or lower based on the annual rate.

b\) It is assumed that the legal changes promised and stated in the government's statement dated March 7, 2024, have been implemented.

In September 2026, a decision shall be made on the following assumptions:

The assumption is that 12-month inflation in August 2026 will not exceed 4.7%. However, this price level assumption is considered to have been met if inflation in the 6-month period from March - August 2026 is 4.4% or lower based on the annual rate.

Response to failure of assumptions

The Wage and Conditions Committee shall, when deciding on a response to deviations from the agreed targets, consider the development of economic indicators during the agreed period. The response shall have a positive impact on the progress of the targets set by the parties to the agreement regarding lower inflation, inflation expectations, a reduction in the policy rate, improved welfare for employees and improved competitiveness of the Icelandic economy. The Committee shall take a holistic view of the economic situation.

The committee may decide that the purchase price increase under this agreement will be replaced by another equally valuable response that is more appropriate to the circumstances at any given time.

If no agreement is reached on a response to a failure to meet the conditions, the contracting party that does not want the agreement to remain in force shall notify the following:

Due for review in September 2025. Before 16:00 on October 8, 2025, the agreement will then expire on October 31, 2025.

Due for review in September 2026. Before 16:00 on October 8, 2026, the agreement will then expire on October 31, 2026.

Purchase price increase

If the collective agreements remain in force, the Wage and Conditions Committee shall in March 2025, 2026 and 2027 decide on a special wage increase if the wage index of Statistics Iceland for the general labour market shows that wages have increased in excess of the increase in the lowest wage. The proportional increase in that index shall be compared with the proportional increase in the 4th section of the SGS/Efling collective agreements for the same period. The wage increase shall be calculated as the full percentage of the excess increase over the aforementioned wage increase, and all minimum wage increases in the parties' collective agreements shall be increased by that percentage from 1 April each year.

a\) In March 2025, an increase in the purchasing power parity rate and the development of the wage index in the period November 2023 - November 2024 should be expected.

b\) In March 2026, an increase in the purchasing power parity rate and the development of the wage index in the period November 2024 -- November 2025 should be considered.

c\) In March 2027, an increase in the purchasing power parity rate and the development of the wage index in the period November 2025 - November 2026 should be considered.

If productivity bonuses and wage rate bonuses are paid concurrently under this collective agreement, the minimum wage rates of the collective agreements shall be increased by the higher bonus at any given time.

Productivity increase

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

The productivity increase and payment for it are further detailed in an appendix to this agreement.

This agreement is valid from February 1, 2024 to February 1, 2028 and will then expire without specific notice.

Reykjavik, March 7, 2024

The parties agree to establish a group (two representatives from SA and two from Efling) that will meet 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 collaboration with the Icelandic Business Education Center.

Implementation plan

The parties agree to increase the number of job profiles in consultation with the Icelandic Business Education Center, where job competency criteria are analyzed through competency analysis, assessment lists are developed for jobs, and subsequently, competency is confirmed through the issuance of Professional Certificates.

The parties agree on the preparation of promotional materials and instructions for companies and employees on the new competency-based wage system. The parties are working together on the preparation of the promotional materials in collaboration with the Icelandic Business Education Centre. \[2024\]

If an employee's terms, assessed as a whole, are inferior to the minimum terms according to a collective agreement, his claim for adjustment, if it arises during employment or within 6 months of termination of employment, shall not be vacated for negligence but shall expire according to general rules. \[2024\]

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

The first review point will take place after 2025. The starting value of the productivity index is 100 in 2023.

Productivity growth consists of both increased labor productivity and technological development driven by investment. It is important that there is a continued financial incentive for investment. 70% of the productivity increase will therefore go to workers.

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

The Wage and Conditions Committee determines if a productivity increase is warranted. The productivity increase is proportional (%) and is applied to wages in the same way as general proportional increases in collective agreements. If unforeseen circumstances arise that have a negative impact on the economy, the Wage and Conditions Committee may have to take a position on whether or how an increase should be made.

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

In line with the increasing number of foreign workers in the Icelandic labor market, the contracting parties will collaborate to define the need for interpretation services and, where appropriate, prepare guidelines for companies on the matter. \[2019\]

The parties agree that employees who perform confidential duties for their union by sitting on the board, bargaining committee or confidential council, and who are in communication with their employer due to those confidential duties, will not be required to pay for those confidential duties, cf. Article 4 of the Act on Trade Unions and Industrial Disputes No. 80/1938. \[2019\]

When an employer provides an employee with housing for consideration in connection with employment, the provisions of the Tenancy Act No. 36/1994 apply regarding the formation and content of lease agreements.

A lease agreement under the Tenancy Act must be in writing and meet the requirements of Chapter II of the Tenancy Act, including the amount of rent, whether the agreement is temporary or permanent, and what services to the premises are included in the rent.

The aim is that employees do not pay higher rent than is generally the case and that the rent amount is fair and reasonable for both parties. When assessing whether the rent amount is fair and reasonable, the size, location and condition of the premises and the rental price according to registered rental agreements in the same area will be taken into account.

Housing must be intended for residence and meet requirements for amenities and hygiene.

If there is an agreement that an employee will not pay rent for housing, the salary terms may nevertheless not be worse than the minimum terms of the collective agreement pursuant to Article 1 of Act No. 55/1980.

These provisions apply while the employee is on the payroll of the relevant employer. \[2019\]

The parties agree on the importance of the workplace as a place of learning. The developments and challenges that are foreseeable in the workplace in the coming months, including the fourth industrial revolution, further increase the importance of this. The business community and employees must jointly be able to meet these changes and thus consolidate the country's competitiveness and social stability. Valuing the skills, experience and informal learning that an employee acquires in the workplace is an important matter of interest, as it strengthens the position of those working in the labor market, the professions, companies and the nation in general in terms of knowledge level and advancement.

The systematic development and development of competency assessment is a fundamental prerequisite for achieving these goals, and the parties agree that strong emphasis will be placed on the development of competency assessment during the term of the agreement. This applies to competency assessment for work as well as competency assessment for learning in the formal education system.

Assessment of actual skills can be an incentive for people in the labor market, in various professions, to develop in their careers and to complete formal education and further enhance their actual skills \[2019\].

The parties to the agreement aim to implement a new wage system as part of the collective agreement. Its main objective is to ensure that wage setting within companies is objective and flexible. The wage system will be an option for implementation in workplaces as a permitted deviation under Chapter 5 of the collective agreements. The provisions of Chapter 5 apply in all respects to the introduction of a new wage system in companies. The relevant trade union, or unions if more than one is a party to the agreement, shall ensure that the agreed deviations and the remuneration for them, assessed as a whole, comply with the provisions of the law and collective agreements on minimum wages, cf. the provisions in Chapter 5.

1. Foundation 

It is the common understanding of the contracting parties that the efficient operation of companies is a prerequisite for good employee benefits and reasonable working hours. Continuous improvements that contribute to increased productivity and efficiency ensure the operation and competitiveness of companies. One aspect of competitiveness is that companies' wage setting is linked to measurable performance factors in a wage system developed in cooperation between the parties to the collective bargaining agreement.

2. Objectives  

The goal of the new wage system is to classify jobs objectively, increase the number of factors considered when setting wages for jobs, and establish clear criteria for setting wages and wage development for individual employees. The new wage system provides employees and employers with a powerful tool that promotes increased education and career development, transparency, and job satisfaction. At the same time, there will be clearer incentives for employees to develop in their jobs.

Successfully developing and implementing a new pay system can contribute to increased employee learning and development and transparency in pay structures. This involves defining in a targeted manner how the assessment of jobs, roles, skills, responsibilities and performance creates the basis for setting pay and increased benefits for employees and companies.

The Act on Equal Status and Equal Rights for Women and Men No. 10/2008 requires companies with 25 or more employees to base their pay systems and wage determination on objective and transparent criteria. According to the Act, companies are required to implement an equal pay standard in the period 2019-2022, and a new pay system will facilitate that implementation. It is desirable that smaller companies base their pay systems on comparable criteria.

3. The project 

The project involves developing a simple and accessible salary system that is based on a few but clear factors and can be used by companies of all sizes and types. The salary system needs to reflect the varying needs of companies so that it can be based on appropriate metrics. The salary system thus does not include a final definition of metrics or the weighting of individual factors, but is a framework that employees and managers can develop together and adapt to the needs of each workplace according to the sources contained in collective agreements.

The new wage system is intended to support and align with other developments in the labor market and in relation to the education system. This includes, among other things, the assessment of actual skills against jobs and the introduction of equal pay certification. In further developing the system and defining criteria, the Icelandic Qualifications Framework will be taken into account, among other things. The starting point is to create a basis for setting wages based on the nature of the job and the employee's qualifications, regardless of job titles, which will not be part of this system.

The system is based on five main components, each of which has more detailed criteria. The components are both job-related and individual-specific. Based on the components and the criteria within them, a basis is created for setting salaries, the components and the criteria within each component. The categories and examples of possible levels in each category are:

Work-related factors  - Role. Criteria in this section include, for example, the nature of the work and position in the workplace, project management, supervision of training and the reception of new employees Responsibility. Responsibility for projects, people, machines, equipment, etc. - Independence. A requirement for independence in work, which may relate to the > work as a whole or to individual aspects of it. Individual factors  - Experience and knowledge. Additional knowledge, experience and training that is useful in the job. General competences such as communication skills, initiative and flexibility. - General competence factors. Communication skills, initiative, flexibility > etc. 4. Implementation plan 

After this collective agreement enters into force, the parties will begin joint work on developing a new wage system.

The parties to the contract shall appoint a working group consisting of three union representatives, i.e. one from each of the following; SGS, VR and the industrial unions, and three representatives from the Confederation of Icelandic Employers. The working group is responsible for ensuring that the project is implemented and completed within the required time. This includes, among other things, authorization to temporarily hire an expert.

The work involves developing elements and criteria that create a new pay system based on the foundation presented above. This includes, among other things, a more detailed description of the criteria and their direct connection to pay setting.

Once work on developing the payroll system is complete, another phase of creating promotional materials and promotional activities will begin in [2019].

Tourism in Iceland is undergoing rapid development and the number of those working under the tourism agreement has increased significantly, as have the employers who employ workers and are required to implement the agreement. There are some failures to implement the agreement properly, in most cases because employers and employees are not sufficiently familiar with its provisions.

The parties will therefore work together, immediately after the adoption of this agreement, to present the main provisions of the agreement to employers and employees with the aim of ensuring its proper implementation. Particular attention will be paid to wages, bonus payments, deductions from wages and the organization of working hours. Attention should be drawn to the provisions on the beginning and end of shifts and the payment of wages for work in excess of the specified working hours according to the shift schedule.

The parties also agree on the importance of completing written confirmation of employment before the first salary settlement, so that the employee is clear about his or her terms and conditions, whether work is to be performed according to provisions on shift work or hourly wages. \[2015\]

The parties agree on the importance of employees having the option of a certain degree of flexibility when it comes to retirement due to age. The needs and circumstances of people in the labor market vary, and with increasing life expectancy and improved health, it is common for people to maintain full working capacity and a desire to participate in the labor market beyond retirement age. Flexibility in retirement can consist of a reduced work rate in the last years of working life as well as permission to continue working beyond retirement age for those who have full working capacity and a desire to remain active in the labor market. It is important to take into account the circumstances of each individual.

A flexible retirement age has been under discussion in a committee tasked with reviewing the Social Security Act, which includes members of the labor market. The committee agrees that the law should promote increased individual flexibility, and has discussed, among other things, raising the retirement age to 70 years in stages and allowing the deferral of pensions to 80 years of age instead of the current 72 years, in exchange for an increase in the person's monthly pension.

Over the past decade, life expectancy has increased and average life expectancy has increased worldwide. More and more people are living longer and healthier lives in later life. This trend calls for a reassessment of the retirement age. Most of our neighboring countries have raised their retirement ages for these reasons. \[2015\]

The value of work for people's mental and physical well-being is undeniable and is increasingly understood. The work contribution of older workers is important and is increasing as the natural increase in the number of workers in the labor market decreases due to the changing age structure. \[2015\]

The contracting parties will work to assess learning/actual skills for wages in two stages based on job competency analyses. A plan for job analysis will be made with the involvement of both parties in consultation with the Icelandic Business Education Centre, where the competency components of the job are set out in the curriculum.

A committee of the contracting parties, three from ASÍ and three from SA, will begin work no later than autumn 2015. Work will continue on the basis of the proposals that the contracting parties have formulated in the run-up to the collective agreements. The aim is to launch courses and practical skills assessments based on this work in autumn 2016.

By 1 Oct. 2016, the method of payment for the skills assessed in the job must be determined. \[2015\]

"Continuous employment" within the meaning of collective agreements means that an employee has been in a continuous employment relationship regardless of whether he has temporarily dropped from the payroll. However, an unpaid period is not considered part of the employment period for the purpose of accruing rights, unless the law or collective agreements determine otherwise, cf. for example statutory maternity leave. \[2015\]

The parties will jointly request that the insurance terms and conditions for accident insurance for employees be amended in such a way as to compensate for the necessary costs of a broken tooth caused by an accident at work and in excess of the co-payment under the Social Security Act. The reservation shall otherwise be governed by the Social Security Act and the terms and conditions of the insurance companies. \[2015\]

During the contract period, the parties will jointly request that the government review the holiday law with a view to providing clearer provisions on the rights and obligations of the parties. \[2015\]

The parties agree that there is a lack of written employment contracts or employment confirmed in writing in accordance with the provisions of the collective agreements on employment contracts and employment letters. During the agreement period, the parties will work to promote the obligations of employers and the rights of employees under these provisions. The parties will review the implementation and effectiveness of the provision by the end of 2015, and review it in light of this. The new provisions on penalties are intended to address the comments of the EFTA Surveillance Authority (ESA). If the ESA considers the provision to be unsatisfactory, the parties will immediately enter into negotiations to address them. \[2014\]

The Icelandic Trade Union Confederation (SGS) and the Icelandic Tourism Federation (SAF) agree that the safety of door and security guards in their work must be ensured as best as possible. The SGS and FA report on door and security guard issues will be taken into consideration and the opportunity presented by the establishment of a working group on their issues will be used. Special attention should be paid to those who work in popular entertainment and restaurants that are open past midnight. Efforts will be made to ensure that door and security guards have the opportunity to receive coordinated training based on the findings of a working group on their issues throughout the country.

SGS and SAF agree to inform and encourage entertainment and restaurant owners to conduct a risk assessment where the need for knife vests will be examined specifically with a view to increasing employee safety. Such safety clothing will be specifically discussed in approved courses that door and security guards are required to attend according to Regulation No. 1277/2016. \[2011\]

The agreed general wage increase in the collective bargaining agreements of the member unions of ASÍ and SA refers to the minimum increase in the regular wages that an employee receives on the day when the increase according to the collective bargaining agreement is to be implemented, regardless of the salary of the employee in question.

It is not permitted to reduce or eliminate overpayments by not paying general wage increases. Overpayments will only be reduced or eliminated if the provisions of the employment contract are followed. However, this provision does not prevent a company from being able to accelerate increases through special decisions in wage decisions, and then in a predictable and predetermined manner, account is taken of unannounced general wage increases in the next 12 months. The employee must be made aware in advance in a verifiable manner that this is an accelerated general wage increase according to the collective agreement. \[2011\]

The parties agree to review the structure of preventive health services and occupational safety.

The aim is to promote predictable response to illness and to ensure that employees who fall ill are offered appropriate treatment as soon as possible. This includes increased flexibility in the labour market to ensure that individuals who become ill or injured and are undergoing active vocational rehabilitation have the opportunity to return to work in accordance with their working capacity at any given time.

It is clear that this goal can only be achieved if there is mutual trust between the employer and employees regarding arrangements for reporting illness, employees' return from illness, preventive health services in companies, etc.

The contracting parties participate in a steering group organized by VIRK that works towards the goals mentioned above.

A development project being launched by VIRK on prevention and vocational rehabilitation will be monitored in particular. The contracting parties will use the experience and knowledge that will be gained in their work.

The contracting parties will provide support and advice to the employees of this development project on issues that arise in the project and relate to legal and collective bargaining rights and obligations in the labor market. \[2011\]

The parties agree to work towards ensuring that companies comply with the provisions on the breakdown of information on pay slips in accordance with the provisions of the collective agreement. The information is clear and concise.

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 services in this area are successfully developed in a positive way so that they are effective for employees and companies.

The parties to the agreement will appoint a negotiation committee intended to reach an agreement on further arrangements regarding the notification of illness to a confidential doctor/service company in the field of occupational health and safety.

The negotiation committee shall, in its work, discuss the following issues, among other things:

- The conditions that a medical assistant / service company must > meet. - Arrangements regarding notification of employees to a service company in the field of occupational health and safety due to illness and accident absences, if the employer wishes to adopt such an arrangement, provided that such notification then replaces the submission of a medical certificate. - Confidentiality and handling of personally identifiable information that a medical assistant / service company obtains through its activities. This applies to the collection, processing, storage and destruction of this information. - How the activities of medical assistants / service companies can benefit occupational health and safety work in the companies.

In its work, the discussion committee will collaborate with the Icelandic Data Protection Authority, the Director of Health, the Icelandic Occupational Safety and Health Administration, and stakeholders.

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

The ASÍ and SA bargaining 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 agreement of their member organizations and shall enter into force 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 and health that have been recognized by the Icelandic Occupational Safety and Health Administration as a service provider in the field of occupational safety and health and the obligation of employees to report to them. \[2008\]

In order for an employee to be considered to be employed for shift work according to section 3.1., the conditions of the section must be met. Special emphasis is placed on the provisions of section 3.1.3. that it is clear according to the employee's employment contract/letter of employment that this is a pre-determined work arrangement according to the existing shift schedule. The shift schedule must be provided to the employee in a verifiable manner, such as on paper or electronically. \[2011\]

No one can act as a doorman except those approved by the Chief of Police.

Doormen must meet the following general requirements:

a) Be at least 20 years old.

> b\) Have not been convicted of any violent or drug offenses in the last

five years. A criminal record certificate must be submitted to confirm this. Foreign

Citizens must submit a criminal record check from their home country.

The Commissioner of Police otherwise assesses who is considered suitable to serve as a doorman.

The National Commissioner of Police may stipulate that no one shall act as a doorman unless he has completed an approved doorman course. The National Commissioner of Police may set further rules on the content of such courses and stipulate further requirements for the qualifications of doormen.

General

Full-time employees who work regular shift work earn 12 winter holidays per year for contractual holidays and public holidays that fall on Monday to Friday in the workweek. Winter holidays are not granted for holidays that fall on Saturdays and Sundays or if the workplace is closed on a holiday.

What is the right to winter holidays based on?

The right of shift workers to winter holidays is based on the fact that the working year of shift workers is being equalized with day workers who work their working week during the daytime working period from Monday to Friday. Permanent day workers are given days off on contractual holidays that fall during the working week (Monday - Friday) but are still paid for full daytime work. For example, Thursday is a holiday. A day worker works four days that week or 32 hours but is paid for 40 hours of daytime work. Shift workers work an average of 40 hours per week in shifts and the shift schedule is not changed even if there is a contractual holiday in the week. Therefore, shift workers work 40 hours per shift that week, regardless of holidays. To equalize their position with day workers, shift workers earn one winter holiday for each day that falls during the day worker's working week. Instead of receiving holidays at the same time as contractual holidays, they are accumulated and granted at once as winter holidays.

Which public holidays create the right to winter holidays?

When holidays according to articles 2.3.1. and 2.3.2. of the collective agreement fall on Mondays to Fridays, they create the right to winter holidays. When they fall on weekends (Saturdays or Sundays), they do not create the right for either day workers or shift workers.

If there is no activity on a weekend

If the workplace is closed on a contractual holiday that falls on Monday to Friday or a holiday is granted on that day, the corresponding number of days is deducted from the winter holiday, except for those who have earned shift leave. This means that if, for example, the workplace is closed on June 17, the number of winter holiday days for employees who should have worked that day is reduced by one. The same applies if an employee takes a day off on a public holiday, when he should be at work according to the shift schedule. If an employee is on earned shift leave on a day that is closed, he does not lose his right to the winter holiday day, since he has already worked a full week.

The right to take winter holidays is not determined solely by work on a public holiday, but also by whether the employee has worked a full week of work (40 hours) in a week that includes a public holiday, Monday through Friday. Therefore, an employee earns the right to a winter holiday, even if he or she was on shift leave on a public holiday, if he or she has worked a full week of work that week.

Harvesting season 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. There has been some misunderstanding that one winter holiday is accrued for each month worked. This is possibly due to the fact that the agreed number of winter holidays is 12 and there are 12 months in the year. The correct thing is that winter holidays are accrued based on the number of public holidays in each month of work of the employee.

If an employee works part-time, his earned winter holidays 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 holiday that falls on a weekday and one in August. He then earns the right to be paid 16 hours. in daytime work upon termination of employment if he did not receive leave at daytime wages two workdays before he left.

For information, it should be noted that if holidays that fall on Mondays through Fridays are counted from the calendar, they range from 9 to 13 per year. According to a calculation made based on a 400-year period, holidays that fall on Mondays through Fridays are 11.21, but according to the collective agreement, it is decided to base the number on 12.

Payments during winter holidays

Winter holidays are paid out as daytime work. This means that shift workers receive the same payment as daytime workers for the contractual holidays that fall on Mondays to Fridays. However, those who work shifts on these days receive a higher shift allowance for standing shifts on holidays than on weekdays. A full-time employee working all year round who earns 12 winter holidays receives 8 hours of daytime work for each day earned. This is therefore a total of 96 daytime working hours in payment. If employees work 12-hour shifts, they earn 8 shifts of leave at the daytime rate (96/12). No allowance is paid when winter holidays are taken.

Winter vacation paid out without taking

The main rule is that employees take paid winter leave.

It is permitted, by agreement between the employer and employee, to apply a different settlement rule for special holidays/major holidays for shift workers.

Instead of winter holidays, shift workers may be paid 8 hours of daytime work (based on full-time work) for each special holiday/major holiday that falls on a weekday. Part-time workers are paid in accordance with their work rate.

The payment rule applies both when an employee works on a holiday/major holiday (on a weekday) and when an employee is on earned shift leave (on a weekday) and has thus fulfilled their full work obligation in accordance with their work ratio.

The right to payment therefore does not depend on whether an employee works on the special holiday/major holiday, but rather on whether he has completed his full work obligation in the week in question, in accordance with his work ratio.

The company ehf., ID number xxxxxx-xxxx on the one hand and \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \

ID. \ \ \ \ \ \ \ \ \ \ \ \ other hand , enter into such an agreement to link part of the salary to the exchange rate of a foreign currency or to pay part of the salary in a foreign currency , based on the provision of the collective agreement \

Link to foreign currency or payment in foreign currency:

Linking part of wages to a foreign currency

Payment of part of wages in foreign currency

Currency:

EUR

USD

GBP

Another currency, any \ \ \ \ \ \ \ \

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

Part of fixed salaries paid/linked to foreign currency

Part of total salary paid/linked to foreign currency

Percentage of wages paid/linked to foreign currency:

10%

20%

30%

40%

Another ratio, which\ \ \ \ \ \ \

This agreement is made in duplicate and each party to the agreement shall retain a copy.

Date: \ \ \ \ \ \ \ \ \

Company Employee

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

\[2008\]

The parties agree that a change of ownership of the company or a merger of the company cannot change the terms of employment, including the employees' vacation and sick leave entitlements, unless the employment contract has been terminated beforehand. The parties' mutual notice period does not change in the event of a change of ownership of the company.

The parties agree that the previous owner will inform the company of any planned changes to its operations or sale, with as much notice as possible.

When a company changes ownership, the new owner assumes the rights and obligations of the previous owners towards the employees, unless otherwise specifically agreed with the previous owners. If the new owner considers himself to be free from the employment contracts of the previous owner, he must notify the employee immediately upon taking over the company. If so, the previous owner is obliged to pay the employee a notice period according to the employment contract or collective agreement.

Corresponding rules apply to the lease of a business as well as the sale or lease of a business after bankruptcy, provided that the agreement covers the operation of the business and not only the premises, equipment and other equipment.

An employee's holiday credit corresponds to a certain number of working days (shifts) on holiday. The following tables show holiday shift credit based on four different work arrangements (shift systems).

Working arrangements

+-----------------+-------------+------------+------------+------------+ | > Vacation days | V | | | Work-holiday | | | inna-holiday | Work-holiday | Work-holiday | | +-----------------+---------------+------------+------------+------------+ | credit | 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 Employers have agreed on the following procedure in disputes concerning foreign workers.

Assumptions and common goals

The organization agrees that Iceland's obligations under the EEA Agreement on the free movement of goods, capital, services and workers across national borders have a positive impact on the interests of individuals and companies in this country, along with an increased supply of goods and services, the spread of knowledge between countries, increased competition between companies, progress in various areas of society and an increase in the number of jobs.

The EEA Agreement means that nationals of the member states can travel between countries for business purposes without a work permit. Companies established there also have the right to provide services in another member state with their own employees without a special permit. Nationals of EFTA states have essentially the same right under the EFTA Treaty.

The main rule is that other foreigners (third-country nationals) will not be employed in this country without a work permit.

The parties to this agreement are of the opinion that changes in the composition of the workforce due to the increase in the number of foreigners in the Icelandic labor market should not disrupt the current arrangement for determining wages and other working conditions of employees through collective agreements. The current rules for the implementation of collective agreements will continue to be based on.

It is the common goal of the parties to promote that companies that utilize foreign labor for their production or services pay wages and working conditions in accordance with collective agreements and laws in this country.

If collective agreements are not respected, it undermines the operations of other companies, undermines the foundations of normal competition, and reduces the benefits to society as a whole from a sound and healthy economy.

The parties agree that the adaptation of foreign labor and foreign companies to the customs and traditions of the Icelandic labor market and society is conducive to creating trust and peace in relations between the parties.

The right of employees to work in certain jobs is often legally conditioned by the requirement that the person concerned has completed a specific course of study or has obtained a special qualification to be allowed to work in the profession. The EEA Agreement stipulates the right of foreign employees to have their education, professional qualifications and work experience acquired in another EEA state recognised in Iceland in accordance with the laws and regulations that apply to them.

Principles governing employment conditions for foreigners

With this agreement, the Icelandic Confederation of Labour and the Confederation of Icelandic Employers want to ensure the implementation of current laws on working conditions for foreigners in the Icelandic labor market. These rules are mainly found in the following areas:

Wages and other terms of employment. The Act on the Terms of Employment of Employees and Compulsory Pension Insurance No. 55/1980 stipulates that wages and other terms of employment negotiated by member organizations of the labor market shall be minimum terms, regardless of nationality, for all employees in the relevant profession in the area covered by the collective agreement.

Employees of foreign service companies, including temporary employment agencies. The Act on the Legal Status of Employees Working Temporarily in Iceland for Foreign Companies No. 54/2001[^4] stipulates, among other things, that employees shall, while working here, enjoy collectively agreed wages, vacation rights and rules regarding facilities, hygiene and safety in the workplace.

Free movement of workers. The EEA Agreement and the Act on the Freedom of Employment and Residence of Workers within the European Economic Area No. 47/1993 stipulate that it is not permitted to make workers who are citizens of an EEA state other than the one in which they work rely on their nationality with regard to employment and working conditions, in particular with regard to remuneration.

Work permits for third-country nationals. Act on the Employment Rights of Foreigners No. 97/2002 stipulates that a work permit grants the right to work in Iceland in accordance with the laws and regulations that apply to the Icelandic labor market and that there is an employment contract that guarantees the employee a salary and other working conditions equal to those of local workers, cf. Act No. 55/1980.

Information on salaries and other working conditions of foreign workers

It is the role of union representatives in the workplace to ensure that collective agreements are upheld towards employees, cf. Article 9 of Act 80/1938.

If there is a reasonable suspicion of a violation of the relevant collective agreement or laws concerning the working conditions of foreign workers, the shop steward has the right, on the basis of this agreement, to review data on wages or other working conditions of those foreign workers covered by the collective agreement and working for the employer in question, and, as applicable, on the working rights of those in jobs requiring such rights.

If there is no shop steward at the workplace, the representative of the relevant union has the same authority as the shop steward to review data and bears the same responsibilities.

The information shall normally be provided by the shop steward being allowed to see copies of pay slips or other documents confirming the wages and other terms of employment of the employees concerned. The shop steward is not permitted to take the information out of the workplace. The shop steward shall maintain the confidentiality of information provided to him. The shop steward is, however, permitted to consult with the relevant trade union, and the representatives of the trade union shall then maintain the strictest confidentiality of the information they learn of.

If an employer does not agree to a shop steward's request to provide him with access to information about the salary and other working conditions of a foreigner and/or there is a dispute as to whether the provisions of collective agreements or laws are being respected, cf. Act 55/1980, Act 54/2001[^5] and Regulation No. 1612/68/EEC on the free movement of workers, cf. Act No. 47/1993, and it has not been possible to resolve the dispute within the company, it is permissible to refer the dispute to a special consultation committee of ASÍ and SA.

ASÍ and SA Consultative Committee

The ASÍ and SA consultation committee that deals with issues of foreigners under this agreement shall be composed of four representatives, two appointed by ASÍ and the national union concerned and two representatives appointed by SA.

The Consultative Committee shall seek ways to clarify matters referred to it in accordance with the above-mentioned rules and resolve disagreements through discussions among themselves.

Cases referred to the committee shall be considered by the committee within two weeks unless special reasons prevent this.

When examining a case, the committee may request necessary documents from the employer in question regarding the wages or other working conditions of the foreign employees concerned and, where applicable, the working rights of those in jobs where such rights are required. The authority applies to those foreign employees covered by collective agreements of ASÍ member unions, cf. Article 1 of Act 55/1980.

A shop steward or a union representative who has replaced a shop steward is not bound by confidentiality regarding his or her communications with the committee regarding matters under discussion. Representatives of the consultation committee may also contact a shop steward or a union representative who has replaced a shop steward in accordance with the above to obtain further information regarding the matters under discussion.

The consultation committee and individual representatives on the committee shall maintain confidentiality regarding information obtained from an employer, shop steward or union representative and may not disclose or disclose its contents to third parties.

The committee's findings shall be communicated to the parties to the dispute.

Notwithstanding the committee's conclusion, the matter may be referred to court. In such a case, the duty of confidentiality as stated above does not prevent the submission of documents in court proceedings.

Reykjavik, March 7, 2004

INDEX

Facilities Section 8.1.-8.4.

Driving expenses Article 4.5.

Disputes Article 16.1.

Back-up watches Section 2.9.

Daytime work before 8:00 a.m. Art. 2.1.2.

Daytime working hours Article 2.1.1.

Daytime working hours, continuous Art. 2.1.2.

Death accident benefits Article 9.7.3.

Divisor for hourly wages Art. 1.6.

December bonus Article 1.4.1.

Doorkeepers Gr. 1.13.

Travel to and from the workplace Section 4.5.

Membership fees Article 12.1.

Right of priority Article 7.1.

Holidays Section 2.3.

Meetings with shop steward Section 14.5.

Company-level collective bargaining agreement CHAPTER 5

Food Article 4.5.1.

Maternity leave Art. 9.6. and 13.5.

Term of the Agreement Art. 18.1.

Payment of a medical certificate Article 9.4.3.

Payments for sick leave Article 9.1.

Part-time work Section 1.10.

Collective redundancies Article 13.6.

Rest period Art. 2.4.1.

Premiums Article 12.1.

Collection of membership fees Article 12.1.

Coffee breaks during daytime work Section 4.1.

Coffee breaks during part-time work Section 4.2.

Purchase payments Article 1.11.

Call to work Article 1.8.

Wages due to occupational accidents and diseases Article 9.2.

Sick pay Article 9.1.

Salary concepts Article 9.3.

Wages in foreign currency Article 1.15.

Pay slips Section 1.11.4.

Minimum rest Art. 2.4.

Pension funds Article 11.4.

Medical certificate Article 9.4.3.

Lunch and coffee breaks during daytime work Section 4.1.

Lunch and coffee breaks during overtime Section 4.4.

Monthly salary Art. 1.2.1.

Course Article 15.1.

Shop stewards' course Section 14.7.

Night guards - job description Article 1.13.

Vacation outside vacation time Article 6.2.

Holiday entitlement Article 6.1.

Holiday Home Fund Article 11.2.

Holiday allowance Article 1.4.2.

Employment contracts and letters of employment Art. 1.14.

Contractual conditions Art. 17.1.

Competition provisions Article 1.16.

Medical expenses for work-related accidents Article 9.2.

Health Insurance Fund Section 11.1.

Registration with a time clock Art. 2.5.2.

Recording of working hours Article 2.5.

Accident insurance Article 9.7.

Vocational Training Fund Article 11.3.

Work experience Article 1.5.1.

Major holidays Art. 2.3.1.

Major festival work Section 1.7.2.

Seniority increases Article 1.5.

Vocational Rehabilitation Fund Article 11.5.

Damage to clothing, etc. Article 10.2.

Trustees Article 14. Chapter

Insurance obligation Article 9.7.1.

Youth Purchases Article 1.2.2.

Processed meal times Section 4.3.

Beginning of overtime work Article 2.2.

Notice period Art. 13.1 - 13.3.

Payment of wages Article 1.11.1.

Shift workload Article 3.2.

Children's illnesses Section 9.5.

Illness during vacation Article 6.4.

Winter break Section 3.4.

Working in administrative positions Section 1.2.4.

Working during lunch hours Section 4.3.

Work and protective clothing Section 10.1.

Certificate with job application Art. 1.17.

Overtime pay Art. 1.7. - 1.7.3.

Overtime Article 2.2.

Servants Gr. 1.13.

Safety equipment Article 8.1.

[^1]: Valid from 1.4.2024

[^2]: Valid from 1.4.2024

[^3]: See also agreement on collective redundancies, Article 13.6.

[^4]: Now Act No. 45/2007 on the rights and obligations of foreign companies that send employees temporarily to Iceland and the terms of employment of their employees.

[^5]: Now Act No. 45/2007.