Employer Duties Under Lög nr. 97/2002 (Iceland Work Permits) in Iceland
Reviewed by the Commoner Law Editorial Team. Sourced from Icelandic Acts of the Althingi, statutory instruments, and official guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
Employers must file the work permit application themselves — the worker cannot. This page covers the procedural duties Icelandic employers face under Lög nr. 97/2002 when hiring non-EEA staff. If you are the worker trying to figure out which permit fits you, see the applicant work-visa pathway instead.
Core employer duties:
- EEA-search obligation — for shortage-of-labour permits, advertise the role and verify no Icelandic, EEA/EFTA, or Faroe Islands candidate is available before offering it to a non-EEA worker.
- Employer-specific permit — the permit names this employer and occupation; if the worker switches jobs, a new permit is required.
- 2-month decision deadline — Vinnumálastofnun must decide within 2 months of receiving a complete application.
- Pre-start hold — the worker may not begin work until both the work permit (Vinnumálastofnun) and residence permit (Útlendingastofnun) are granted.
- EEA/EFTA / Faroe Islands citizens are exempt entirely — no permit, no advertising duty, no labour-market test.
The 7 statutory permit categories the employer chooses from:
- Shortage of Labour — EEA-search required; no worker available in Iceland or EEA/EFTA.
- Expert/Specialist — university-level education or recognised training; no labour-market test.
- Athletes — sports clubs under the Icelandic Sports Federation.
- Specialised Employees — educational, academic, or scientific work.
- Youth/Cultural Exchange — ages 18–26, maximum 1 year.
- Students — enrolled international students working while studying.
- Special Circumstances — case-by-case.
All categories are temporary and employer-specific.
Related: If you are the prospective worker rather than the employer, the applicant pathway page walks you through which permit fits, the ISK 15,000 fee, and the 1 → 2 → unrestricted-at-3-years progression.
When does it apply?
- You are a non-EEA/EFTA national who wants to work in Iceland.
- Your employer must initiate the application — you may not begin work until the permit is granted.
What to Do If You Are a Non-EEA National Who Needs a Work Permit in Iceland
- Ensure your employer applies for the work permit to the Directorate of Immigration (residence permit) and Directorate of Labour (work permit).
- Gather required documents: employment contract, qualifications, passport.
- Do not start work until both the residence and work permits are granted.
What should you NOT do?
- Don't work without a valid permit — this is illegal and can result in deportation.
- Don't switch employers without obtaining a new work permit — permits are employer-specific.
Common Questions
Who applies for an Icelandic work permit — employer or employee?
The employer, not the employee, under Lög nr. 97/2002. The worker cannot submit their own application. EEA/EFTA and Faroe Islands citizens are exempt entirely. Decisions must be made within 2 months of receipt, and permits are employer-specific — switching employers requires a new permit.
What types of Icelandic work permit are there?
Seven categories: Shortage of Labour (no worker available in Iceland or EEA/EFTA), Expert/Specialist (university-level education), Athletes (Icelandic Sports Federation clubs), Specialised Employees (educational, academic, scientific), Youth/Cultural Exchange (ages 18-26, up to 1 year), Students (enrolled while studying), and Special Circumstances (case-by-case). All are temporary.
What happens if I work in Iceland without a permit?
Working without a valid permit is illegal and can result in deportation and a re-entry ban. Do not begin work until both the residence permit (from the Directorate of Immigration) and the work permit (from the Directorate of Labour) are granted. Gather the required documents in advance: contract, qualifications, passport.
When does it apply — employer duties under lög nr. 97/2002 (iceland work permits)?
You are a non-EEA/EFTA national who wants to work in Iceland.Your employer must initiate the application — you may not begin work until the permit is granted.
What should I do if I need a work permit to work legally in Iceland as a non-EEA national?
Ensure your employer applies for the work permit to the Directorate of Immigration (residence permit) and Directorate of Labour (work permit).Gather required documents: employment contract, qualifications, passport.Do not start work until both the residence and work permits are granted.
What should you NOT do — employer duties under lög nr. 97/2002 (iceland work permits)?
Don't work without a valid permit — this is illegal and can result in deportation.Don't switch employers without obtaining a new work permit — permits are employer-specific.