Counsellors assist individuals on the unemployment register and provide practical advice regarding job search. The service is free of charge. The emphasis is on strengthening the individual and creating an advantage in the job market.
Job seekers should regularly check for available jobs: See available jobs
Counsellors at the Directorate of Labour can also assist with these resources:
The aim of workplace training is that the unemployed person on the unemployment register will have the opportunity to train and prepare for further participation in the labour market. In the meantime, the person concerned will receive unemployment benefits.
The duration of the contract for workplace training may be up to 13 weeks. The duration of the contract may not be extended for the same jobseeker.
Conditions
A person seeking employment has the right to unemployment benefits.
The Directorate of Labour's consultant assesses it as a useful training for a job seeker.
Contract on workplace training
The Directorate of Labour may conclude an agreement with an organisation on workplace training for individuals. The agreement shall be signed by the person concerned, the Directorate of Labour and the organisation.
With the signing, the jobseeker undertakes to perform the duties assigned to him on the basis of the contract under the guidance of an instructor.
The company or institution undertakes, by signing, to ensure that the jobseeker is insured against accidents during their employment.
Review and feedback
At the end of the contract's validity, the company or institution shall provide the Directorate of Labour with an opinion on the job seeker's work, as appropriate.
The period of work placement training that the applicant is undertaking on the basis of a contract is not considered as a gain period, that is, the applicant does not earn an increased right to unemployment benefits.
The Directorate of Labour may conclude a special agreement with a non-governmental organization that the jobseeker participates in voluntary work, provided that it is a labour market resource.
The contract shall be signed by the Directorate of Labour, the NGO and the jobseeker. The jobseeker agrees to participate in a voluntary activity of his choice, while simultaneously with his work as a volunteer he shall be actively seeking employment.
The Directorate of Labour shall at the same time pay the unemployed person the unemployment benefits to which he is entitled on the basis of the unemployment insurance law and the NGO shall ensure that the unemployed person is accident-protected during the voluntary work.
The NGO that concludes a voluntary work contract shall appoint a special contact point with the Directorate of Labour and shall be in regular contact during the period of validity of the contract to assess its progress. At the same time, the jobseeker shall be in regular contact with the Directorate of Labour's counsellor.
The period of participation in voluntary activities is not considered as a gain period.
The Directorate of Labour may conclude a special work rehabilitation agreement with an employed person who is insured under the unemployment insurance scheme.
The employment seeker undertakes to participate fully in the work rehabilitation programme that he has prepared in cooperation with the Directorate of Labour's consultants and other service providers, and the Directorate of Labour pays him/her at the same time unemployment benefits to which he/she is entitled on the basis of the unemployment insurance law.
The condition is that the vocational rehabilitation programme should be of direct use to the jobseeker in his/her job search and should be suitable for him/her to succeed in finding a job.
An employed person shall communicate regularly with the Directorate of Labour's counsellor and other service providers, when appropriate, during the duration of the vocational rehabilitation agreement, but he/she does not need to be actively seeking employment at the same time.
The duration of each vocational rehabilitation contract may be no more than thirteen weeks. The contract may be renewed once, provided that the vocational rehabilitation has been satisfactorily successful in the opinion of the consultants of the Directorate of Labour.
The vocational rehabilitation programme is about vocational rehabilitation
The period of work rehabilitation on the basis of a work rehabilitation contract is not considered as a gain period.
A jobseeker who is employed on a recruitment grant must have been on the register as an applicant for unemployment benefits for at least 3 months after the loss of employment.
Employers can receive 100% basic unemployment benefits and 11.5% contribution to the pension fund for up to 6 months, paid with new workers or up to ISK 390,084 per month.
Courses
You can attend a variety of courses free of charge through the Directorate of Labour. It is also possible to receive a grant for a course of your choice.
When an individual receives unemployment benefits, he/she agrees to perform certain duties as an unemployed person. This is accompanied by various services and advice.
Confirming job search
Those who receive unemployment benefits must confirm their job search every month. This is done on My pages between the 20th and 25th of each month. It is necessary to confirm the job search even if the application is still in process and also even if payments are delayed due to violations of the rules.
report income, part-time and contract work,
to inform if circumstances change.
Several changes can affect the right to unemployment benefits and therefore they need to be notified. If this is not done, payments may be postponed or stopped permanently. This can be done on my own.
You can read more about this here:
While receiving unemployment benefits, people must be active in seeking employment. This means that:
take the initiative to seek work,
take paid work, even without special notice,
take a job anywhere in the country,
take a job regardless of whether it is full-time or part-time, or working shifts,
participate in the labour market measures available,
provide the Directorate of Labour with the necessary information to increase the likelihood of obtaining a suitable job.
Those on the unemployment register must answer invitations to job interviews and attend if they are invited to an interview at the service office of the Directorate of Labour.
Individuals on the unemployment register must ensure that information on My pages about phone numbers, e-mail addresses or addresses is correct.
Consequences for breaking the rules
Failure to comply with these rules can have consequences. For example, payment of unemployment benefits may be delayed, the person concerned is put on hold. When payments are delayed, it applies from the date of the ruling.
Applicants who are subject to a waiting period at the beginning of a period are not entitled to income related unemployment benefits.
Payments are suspended at the beginning of a period if the applicant:
resigns from their job without a valid reason,
looses their job for reasons that are their own fault,
terminates their studies without a valid reason,
If a written explanation is submitted with the application can decrease processing time of the application. If a written explanation is not sent the application is postponed and the applicant will be given the opportunity to submit explanations or objections regarding a possible decision by the Directorate of Labour.
Payments can be suspended for:
2 months,
3 months in case of recurrence.
Those who work while receiving unemployment benefits, but do not report it to the Directorate of Labour, have to earn the right to a new benefit period.
Payments are suspended:
If what needs to be reported is not reported,
if a job offer is rejected without valid reasons,
not participating in the creation of a job search plan or not following the plan,
resources offered are rejected, for example attending a course,
not attending scheduled interviews or a meeting without a valid reason.
Cancellation of suspension
Penalties imposed for two months can be cancelled. The conditions are that:
The person worked for at least 2 weeks before reapplying and was deregistered from unemployment benefits.
The job was not terminated without valid reasons.
The person did not lose their job for reasons that were their own fault.
If these conditions are not met, the suspension of payments is still in effect when applying for unemployment benefits again.
Those who work alongside benefits without reporting the work.
Those who are subject to suspension of payments and have received benefits for 24 months or more.
Those who are subject to suspension of payments for breaking the rules for the third time.
Education on unemployment benefits
What do you need to know? Here you can find useful information about unemployment benefits and job search: