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Iceland

Governed by Act 88/1971 and CBA. 36-37 h/wk (4-day workweek reform 2021). OT +33 % then +56 % holidays. 11 h daily rest. Tracking required.

Authority: Iceland Labour Inspection · ASÍ
Act 88/1971
Code
36-37 h
Statutory week
2021
4-day reform
11 h
Daily rest
35 h
Weekly rest
+33 %
OT premium

Disclaimer: This country guide is provided for informational purposes only and does not constitute legal advice. While we update it regularly, it may not reflect ongoing regulatory changes. Illizeo SA accepts no liability for actions taken or not taken based on this content.

Statutory working time

Act 88/1971

4-day workweek reduction since 2021 · 36 h/wk typical

TopicRuleLegal basisReference
Statutory40 h/wkActBase reference
Post-202136 h public sectorNational reform4-day workweek
Private37 h typicalCBAVaries
Pioneer
Successful reduction
Official sources
Labour Inspection

Overtime

CBA

+33 % standard · +56 % weekend/holiday · CBAs frame

TopicRuleLegal basisReference
Standard OT+33 %CBAMost common
Weekend OT+56 %CBAImportant premium
Refusal
Possible
Official sources
ASÍ

Rest & breaks

EEA Directive

11 h daily · 35 h weekly · break per CBA

TopicRuleLegal basisReference
Daily rest11 hActEEA standard
Weekly rest35 hActStandard
EEA
EU Directive applies
Official sources
Labour Inspection

Night / Sunday / holiday work

Act

Night per CBA · 13 public holidays + Sumardagurinn fyrsti

TopicRuleLegal basisReference
NightPer CBACBAVaries
Public holidays13 dActFixed list
First day of summerAprilTraditionIS-specific
Trade Worker Day
First Monday August
Official sources
Government

Time recording

EEA

Tracking mandatory · 4 years

TopicRuleLegal basisReference
ObligationRecords hours + restActAll employees
Retention4 yearsActStandard
Vinnueftirlit
Audits
Official sources
Labour Inspection

Remote & flex work

CBA

No dedicated remote law · CBAs frame · expenses per agreement

TopicRuleLegal basisReference
Legal frameworkNo dedicated lawPer CBA
ExpensesPer agreementTaxVaries
Hybrid
Standard
Official sources
Tax Authority

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