Individuals who have an approved application for unemployment benefits in Iceland can keep the benefits in another EEA country for up to three months.
Conditions:
You must be a citizen of an EEA state,
You intend to actively seek employment in Europe,
You have a confirmed application for unemployment benefits in Iceland and you have received unemployment benefits for a least 4 weeks continuously before leaving(no vacation days or sick days),
You stay in Iceland until the date of departure set in the application.
Austria
Belgium
Bulgaria
Denmark
Finland
France
Germany
Greece
Netherlands
Ireland
Iceland
Italy
Croatia
Cyprus
Latvia
Liechtenstein
Lithuania
Malta
Norway
Poland
Portugal
Romania
Slovakia
Spain
Sweden
Czech Republic
Hungary
3 months
The U2 certificate is always issued for 3 months and this period cannot be extended.
Same rights as in Iceland
The certificate gives the same right to unemployment benefits as in Iceland. If an individual has less than 3 months left of his/her period entitlement, the person concerned will not be paid beyond that period.
How to apply
Applications are made on the Directorate of Labour's My pages. Applications must be made 3 weeks before departure.
Applicants will receive an e-mail when the certificate has been approved.
Within 7 working days of the U2 certificate becoming valid, you must register as a jobseeker in the country of residence.
The registration is made by the State Employment Agency of the country of residence, comparable to the Directorate of Labour in Iceland.
The Directorate of Labour confirms the date the individual registered for job seeking and sends the information to the Directorate of Labour in Iceland.
Date of commencement of benefits
If registration is successful within 7 working days, the individual will receive compensation from the moment the U2 certificate becomes valid. If this is not achieved, compensation is calculated first from the date of registration in the country.
Registration failed
If an individual was not able to register for the first time when contacting the employment agency in the country of residence, a confirmation must be obtained from foreign authorities that the employment agency has been consulted in order to try registration.
The Directorate of Labour continues to pay unemployment benefits while you are looking for work. The same amount is paid as was paid in Iceland and deposited into an Icelandic bank account.
Confirming job search
The job search is confirmed as before, between the 20th - 25th of each month on My pages of the Directorate of Labour.
Rules
The official employment agency in the country of residence sets rules and conditions for those who are unemployed and looking for work. Rules on what constitutes active job seeking are different between countries. A person with a U2 certificate must follow these rules.
The official employment agency sends information to the Directorate of Labour on whether the person is active in seeking employment.
When you start working in the country of residence, you must deregister from unemployment benefits on the Directorate of Labour’s ‘My Pages.
No entitlement to benefits
Individuals who find work in another EEA state are no longer entitled to unemployment benefits from Iceland.
Part-time job
If an individual gets a part-time job while the U2 certificate is valid, the employment agency in the country of residence must inform the Directorate of Labour about the job. The person concerned can then receive partial benefits during the certificate period in parallel with the part-time job.
To be eligible for unemployment benefits in Iceland, you must return to Iceland before the U2 certificate expires.
When you return to Iceland, you must confirm your arrival within 7 working days, if this is not done, the individual will need to reapply for unemployment benefits, and their benefit entitlement will be recalculated.
Individuals confirm arrival to Iceland by showing up at the Directorate of Labour’s office with a valid personal identification and a boarding pass from the flight.
Arrival in Iceland must be reported even if the individual does not intend to continue receiving unemployment benefits.
Before leaving the country of residence, you must deregister with the employment agency in that country.
Cancellation
If the use of certificate is cancelled, the Directorate of Labour must be notified immediately.
If the certificate has been issued you must attend the nearest service office of the Directorate of Labour to confirm that you are in Iceland.
If the certificate has not been issued you must still notify the Directorate of Labour immediately. This is done by sending an e-mail to: uvottord@vmst.is
Renewal
Conditions to get a U2 certificate again:
6 months have passed since the end of the previous certificate,
worked for at least 3 months in a minimum of 25% employment ratio
The work cannot be part of labour market measures, such as employment grants, and otherwise fulfil the provisions of Act no. 54/2006 on Unemployment Insurance.
After studying in another EEA country
If you are a student who is coming to Iceland after completing studies abroad, are unemployed and have the right to unemployment benefits in a country within the EEA, you can take with you a U2 certificate that gives you the right to keep unemployment benefits for up to three months while you are looking for work in Iceland.
After unemployment in another EEA country
If you are unemployed and have the right to unemployment benefits in an EEA country, you can take a U2 certificate with you to Iceland, which gives you the right to keep unemployment benefits from the EEA country for up to three months while you are looking for work in Iceland.
You have to apply for unemployment benefits in the EEA State in question, obtain a U2 certificate from the EEA State and meet other conditions that they may have in order to be entitled to payments of unemployment benefits under U2 while you are looking for a job in Iceland.
