Remote’s guide to employing in

Iceland
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Make employment in Iceland easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Iceland, all in one easy-to-use platform.

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  • Capital City

    Reykjavík

  • Currency

    Icelandic krona (kr, ISK)

  • Languages

    Icelandic

  • Population size

    364,134

Services available in this country:
Employer of Record ProductContractor Management
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Grow your teamTaxesTypes of leaveEmployment Termination

Employment termination in Iceland

Termination process

Employee contracts can be terminated at will if prior notice is provided. Employers are not required to provide any specific reason for terminating an employee.

Notice period

Both employers and employees are required to provide notice three months before resignation or termination unless otherwise specified in the employment contract.

Severance pay

There is no legally mandated severance pay, but unions can negotiate a mutual rate applicable to their members.

Probation periods

Probations periods are typically capped at three months into the new job.