Iceland – Employer of Record
Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Iceland. Your candidate is hired via Globalization Partners’ Iceland PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Iceland while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Iceland.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in more than 150 countries around the world, quickly and painlessly.
Basic Facts About Hiring in Iceland
Iceland is located in Europe and has a population of 332,529. The capital city of Iceland is Reykjavik which has a population of 130,000.
Surveys show that despite their obsession with modern technology, as many as 80% of Icelanders believe in the existence of elves. Even today, roads have been rerouted and building plans redesigned or abandoned to avoid disturbing rocks where elves are said to live.
When negotiating terms of an employment contract and offer letter with an employee in Iceland, it may be useful to keep the following in mind:
- New Year’s Day
- Maundy Thursday
- Good Friday
- Easter Monday
- First Day of Summer
- Labour Day
- Ascension Day
- Whit Monday
- Icelandic Republic Day
- Bank Holiday
- Christmas Eve
- Christmas Day
- Second Day of Christmas
- New Year’s Eve
Employment Contracts in Iceland
In Iceland, employment contracts can be oral or written, but it is best practice to put a strong, written contract in place, in Icelandic, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Iceland should always state the salary and any compensation amounts in Icelandic krona rather than a foreign currency. The employment contract template is part of the service with Globalization Partners; no need to draft a separate template if you use our employer of record and PEO service in Iceland.
Why Globalization Partners
Establishing a branch office or subsidiary in Iceland to engage a small team is time consuming, expensive and complex. Icelandic labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Iceland. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Iceland PEO and Global Employer of Record Platform provides you piece of mind so that you can focus on running your business.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Iceland, please contact us.