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Apply for a work permit

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Shortage of employment

Conditions

  • The assistance of the Directorate of Labour has been requested to find an employee in Iceland and within the EEA, the EFTA- states or in the Faroe Islands.

  • The foreign national has entered into an employment contract with an employer.

  • The employer provides specific detailed reasoning regarding the necessity to hire foreign employees from states outside the EEA, the EFTA states or the Faroe Islands, and, amongst other things, how their employment is important to the employer's business operations.

Please be informed that work permits due to a shorter of employees are only granted in exceptional circumstances and are only intended to respond to temporary fluctuations in the Icelandic labour market. Furthermore, the employer is required to search for an employee who already has an unrestricted access to the Icelandic labour market before this type of permit is applied for, also when applying for an extension.

Duration

Temporary work permits for shortage of staff granted for the first time for a specific job may be granted for up to one year at a time.

If there is a shortage of labour due to seasonal fluctuations on the domestic labour market or due to seasonal projects such as the season of slaughter, work permits can be granted in accordance to that period.

Work permits due to shortage of labour can be renewed for up to two years.

Submit an application

The application is submitted to Directorate of Immigration

Regulated professions

Industry

In cases where a job that is applied for a temporary work permit is considered a regulated profession, a confirmation of the relevant foreigner's license must be obtained to perform the job. According to regulation No. 940/1999 on regulated industries, see Industrial Law No. 42/1978, only those who have a license to do so may work in such jobs in Iceland, see Article 2 of the Industrial Law.

If such confirmation is available, it must be submitted by the Directorate of Labour. Further information on obtaining recognition of qualifications and issuing a license to practice can be obtained from ENIC/NARIC.

When a formal assessment of the qualifications for industrial qualifications is available, a copy of the authorization issued by the District Commissioner of East Iceland and an assessment letter issued by ENIC/NARIC must be submitted to the Directorate of Labour.

Health professions

In cases where a job that is applied for a temporary work permit is considered to be a licensed health profession, a confirmation of the relevant foreigner's license must be obtained to perform the job. According to the law on healthcare workers no. 34/2012, only those who have been granted a medical license to do such work in Iceland may do so, see Article 2(1) of the law.

If such confirmation is available, it must be received by the Directorate of Labour. Further information on obtaining recognition of qualifications and issuing permits can be obtained from the Directorate of Health.

Other regulated professions

It is not possible to provide comprehensive information about all professions that are considered to be legally recognized in Iceland or where to obtain a licence for them, but a summary can be found on the website Ministry of Higher Education, Science and Innovation.

Job advertisement at the Directorate of Labour

When processing an application for a temporary work permit due to a shortage of staff, the Directorate may consider it necessary to advertise a job at the Directorate of Labour and through the Directorate's Eures employment service.

In such cases, applicants are sent a message providing a deadline for registering an advertisement and instructions on how to do so on My employers pages. It is preferable that an advertisement that is posted in connection with an application for a work permit is actively advertised for at least three weeks.

The requirements for employment may not be tailored to the individual for whom an application for a work permit is made, but rather take the form of what requirements may generally be made of individuals who perform similar work.

The job advertisement in connection with the application for a work permit is part of the Directorate's comprehensive assessment of the availability of staff on the national labour market and within the European Economic Area. It is therefore important that the employer handles the advertisement and its administration with integrity.

When can an employee start working

An employee may not start working until a work permit is granted. All work permits are limited to a specific employer and do not transfer with a foreigner to a new employer. A foreigner who works for more than one employer must therefore apply for a work permit from each employer.

Extension of the work permit

With an application for an extension of a permit, all the same conditions must be fulfilled as when the permit was granted for the first time. An organization may therefore, among other things, have to advertise the work in question again unless the Directorate of Labour grants an exemption from that. Reference is made to the conditions specified above.

Furthermore, the employer must have paid the tax as well as the insurance premium for the foreigner's work.

A foreigner is generally allowed to work while an application for an extension of a permit from the same employer is being processed. However, it is a condition that an application for an extension be submitted to the Directorate of Immigration four weeks before the expiry of the previous permit.

New employer

If an individual who has been issued a temporary work permit because of a shortage of staff wants to change his/her job, he/she must apply for a work permit from the new employer.

A foreigner is not permitted to start work for the new employer until the work permit has been granted. Otherwise, the application processes like when applying for a work permit due to a shortage of staff for the first time. The employer must therefore, among other things, advertise the work in question unless the Directorate of Labour grants an exemption from that. Reference is made to the conditions specified above.

Employee resigns

A foreigner with a work permit because of a shortage of staff who loses their job can apply for a 6 month residence permit to the Directorate of Immigration in order to seek a different job.

If an employee leaves before the work permit expires, applicants are obliged to inform the Directorate of Immigration. It is sufficient to notify the termination of employment by e-mail to work@utl.is.

General rules of the relevant collective agreement apply to the termination of an employee, as employees who work on the basis of a work permit shall enjoy the same rights as domestic employees.

Laws and regulations

Article 9 of Act No. 97 of 2002 on the employment rights of foreigners.