The child protection services that place a child in foster care shall conclude a written foster contract with the foster parents before the child arrives at their home. Such a contract may be considered as a labour contract, which states the roles, obligations and terms of support during the contract period. The contract must clearly state what the objectives are with the foster care, and how to work towards them during the contract period.

If the state is expected to contribute to the costs of special care and training according to Article 65(4) and Article 88 of the Child Protection Act no. 80/2002, the provisions in the foster care agreement that are related to this are subject to the approval of the National Agency for Children and Families.

What does a foster care contract entail?

The foster contract includes the rights and obligations of the foster parents and child protection services. In foster care, the foster parents take on the care and upbringing of the child from day to day.

It may be necessary to review the details of the agreement, e.g. regarding support for the child and/or foster parents if it becomes apparent that the child's situation and status require more care, or other forms of care than was originally expected. Other aspects discussed in the agreement may need review as well.

What should the foster care contract contain?

The foster contract shall include provisions for:

• domicile of the child and daily care

• custody duties, including legal guardianship

• expected foster care period, cf. Article 65(2) of the Child Protection Act

• child support and other costs (see below)

• the child's contact with the parents and/or other close relatives

• support from the child protection services for the child and foster parents

• the end of foster care

• special care and training, cf. Article 65(4) of the Child Protection Act, when applicable

• other relevant issues

Legal domicile and daily care

In each case, it is necessary to assess when the legal domicile of the child in foster care should be transferred to the foster parents. The purpose of the placement of the child in foster care, the length of the foster care, and the interests of the child must be taken into consideration. In general, the legal domicile of the child is transferred to the foster parents in the case of permanent foster care.

Obligations of custody

The foster care agreement shall specify the custody obligations for the foster parents. The most important issue here is that the position is taken on who should exercise the legal guardianship of the child within the meaning of the law, i.e. autonomy and/or financial control. It should be stated whether and to what extent the foster parents should exercise legal guardianship. In some cases, for example, there may be grounds for appointing a special accountant, or, where appropriate, assigning a special accountant to manage certain assets.

In general, it must be assumed that custody obligations for the foster child will be transferred to the foster parents to a greater extent if the foster care is intended to last until the child reaches 18 years of age, but the foster parents do not have full legal custody of the foster child.

Duration of foster care

The duration of the foster care depends primarily on the plan that has been made in the child's case, either in cooperation with the biological parents or in accordance with a ruling of the District Commissioner of Child Protection or a court. The duration must be stated in the foster contract so that it is clear to all parties. It can cause great insecurity for the child, foster parents and biological parents if the duration and objective of the foster care is unclear.

In the case of a temporary measure, it is important to work well with the biological parents during the foster care period, and that they know what is expected of them during that time.

A foster contract must always be subject to the possibility of expiry if the parent's demand for a review of the child protection measure is met. Article 32 of the Regulation on foster care covers termination, amendment and termination of foster contracts, and it is good to cover such issues in contracts.

Maintenance and other costs

Provisions on payments to foster parents are contained in the regulation on payments for children in foster care nr. 858/2013. It is necessary to determine these items as far as possible before a child is placed in foster care.

Child's contact with parents and/or other close relatives

A foster child has the right to contact his/her parents and other close relatives. The term contact means meetings and other communication. The right of contact with a foster child is granted to the parents unless the contact is clearly contrary to the interests and needs of the child and incompatible with the objectives that are pursued by the placement of the child in care. The rights of a foster child to contact is discussed in Article 74 of the Child Protection Act and Article 25 of the regulation on foster care.

Read more about visitation rights

Support for the child and foster parents

The support provided in foster care can include: treatment for the child, healthcare or other support measures, courses and education, supervision for foster parents, consultations, visits to the child protection centre at the foster home, assistance for interpersonal relations and contacts between parents, among other things.

Concerning support, there is no distinction made between temporary and permanent foster care. When the child requires special care and training, the support is generally more comprehensive.

Foster care contracts should make clear arrangements for cooperation and support to foster parents. However, new difficulties may appear after the child's arrival at the foster home. In that case, it is necessary to examine in cooperation with foster parents whether the support needs to be increased.

Read more about support and rights in foster care

Notification of the end of a foster care contract

When an foster contract has been concluded, notification must be made to the Office of Child Protection and Family Services and other public bodies as appropriate, see Article 73 of the Child Protection Act.

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In the case of long-term foster care, a notification must be sent to:

• the National Agency for Children and Families

• the Quality and Supervisory Authority of Welfare

• state insurance institutions

• child protection services in the home region of the foster parents

• the school committee in the district where the child attended school (if the child is of primary school age)

• the school committee in the district of the foster parents (if the child is of primary school age)

• Iceland’s National Registry

In short-term foster care where the child's legal residence and remains with parents, notification shall be sent to:

• the National Agency for Children and Families

• the Quality and Supervisory Authority of Welfare

• state insurance institutions

• child protection services in the home region of the foster parents

• the school committee in the district where the child attended school (if the child is of primary school age)

• the school committee in the district of the foster parents (if the child is of primary school age)

Termination or change of contract

If the foster contract is for a period of 12 months or less, both the child protection services and the foster parent can terminate the contract. A mutual notice period of one month shall be provided for unless otherwise specified in the foster contract. The termination shall be in writing, with the notice period beginning at the start of the next month.

If an foster contract is for more than 12 months, either party may request a change to the contract, or that the contract be cancelled. Both parties may terminate the foster contract in the event of significant failure by the other party.

If changes occur in the circumstances of the foster parents, such as due to divorce, death, relocation or health problems, the foster parents shall inform the child protection services that placed of the child in foster care, which then assess whether a review of the foster contract is necessary.

If an agreement is not reached between the child protection services and foster parents, the child protection services can rule on amendment or cancellation of the foster contract. The ruling is appealable to the Welfare Appeals Committee.

The child protection services can terminate a permanent foster contract if parents have demonstrated that they can take back the child and the reasons for the foster care arrangement are no longer present.

Payments to foster parents

Laws and regulations

Child Protection Act No. 80/2004

Regulation on foster care no. 804/2004

See also:

Guidelines for compulsory education outside the municipality of domicile and schooling costs

Regulation on the schooling of foster children in primary schools No. 547/2012