On 18 June 2026, the Icelandic Parliament (Althingi) approved amendments to Act No. 97/2002 on the Employment Rights of Foreign Nationals.

Among other changes, the amendments provide for the transfer of responsibility for the processing and issuance of temporary work permits under the Act on the Employment Rights of Foreign Nationals from the Directorate of Labour to the Directorate of Immigration. Applications for temporary work permits that have been submitted but remain pending before the amendments enter into force will be processed by the Directorate of Immigration once the amendments have been published in the Official Gazette (Stjórnartíðindi).

Further information is available here: Foreign Nationals and Employment Rights of Foreign Nationals | Legislative Process | Althingi

In the coming days, the Directorate of Labour will forward all pending cases and inquiries relating to work permit applications to the Directorate of Immigration. Due to this transfer of responsibilities, and while awaiting publication of the amendments in the Official Gazette, delays in the processing of applications may be expected.

Requests for information regarding the status of pending applications may be sent to the Directorate of Labour at atvinnuleyfi@vmst.is. Following publication of the amendments in the Official Gazette, all inquiries should be directed to the Directorate of Immigration at utl@utl.is.