A temporary work permit due to a shortage of employees
A temporary work permit may be granted for specific employment here in Iceland when workers cannot be found in the domestic labour market, within the European Economic Area, in EFTA states or in the Faroe Islands due to a shortage of employees (labour-shortage permit), per Article 9 of the Foreign Nationals’ Right to Work Act, no. 97/2002. The conditions for granting a work permit according to this provision are amongst others:
- The assistance of the Directorate of Labour has been requested to find an employee in Iceland and within the EEA, the EFTA- states or in the Faroe Islands.
- The foreign national has entered into an employment contract with an employer.
- The opinion of the relevant labour union has been obtained.
- The employer provides specific detailed reasoning regarding the necessity to hire foreign employees from states outside the EEA, the EFTA states or the Faroe Islands, and, amongst other things, how their employment is important to the employer's business operations.
Please be informed that work permits due to a shorter of employees are only granted in exceptional circumstances and are only intended to respond to temporary fluctuations in the Icelandic labour market. Furthermore, the employer is required to search for an employee who already has an unrestricted access to the Icelandic labour market before this type of permit is applied for, also when applying for an extension.
Applications for temporary work permits are to be submitted to The Directorate of Immigration, along with all necessary supporting documents. To ensure efficiency of processing, it is recommended that the work permit application be submitted alongside the residence permit application to The Directorate of Immigration.
Contact
If you need further information you can contact us by email workpermits@vmst.is or during call hours of the department. Information regarding call hours can be found here.
Necessary application supporting documents
- Original copy of the application for a temporary work permit due to a shortage of employees.
- The relevant labour union has provided their opinion in section IV of the application before it is submitted unless the labour union in question is Efling labour union. The DoL obtains reviews from Efling labour union directly.
- The application has been signed by both the employer and the foreign national.
You can find a general info sheet on how to fill out a permit application here.
- A contract of employment between a foreign national and an employer, of which the following must be included:
- Information regarding the foreign national’s intended job with the employer, as well as information regarding the employee’s place of work.
- Information regarding the pension fund to be paid into, corresponding the foreign national’s nature of employment.
- The foreign national's terms of employment must be in accordance with relative collective agreements. It is essential to clearly stipulate the terms and conditions of employment. This includes the employment ratio, working arrangements and all relevant salary numbers.
- Information regarding the attempts by the employer to hire an employee who already has a non-restricted access to the Icelandic labour market before searching outside the EEA for employees.
- If the employer has not advertised the position via the Directorate of Labour’s EURES job portal before the application is submitted, the directorate may postpone the processing of the application to provide the employer an opportunity to advertise the position.
An advertisement can be submitted electronically here.
- If the employer has not advertised the position via the Directorate of Labour’s EURES job portal before the application is submitted, the directorate may postpone the processing of the application to provide the employer an opportunity to advertise the position.
- Detailed reasoning regarding the necessity to hire the foreign national in question to work for the employer, and why this is important to the employer's business operations.
- Please be informed that this does not refer to reasons pertaining to the foreign national or their personal circumstances, but only to reasons pertaining to the employer, the job in question, and the conditions of the domestic labour market.
A checklist of the documents and information which must be submitted when applying for a work permit due to labour market shortages can be found here. The Directorate recommends that potential applicants also consult this checklist prior to submitting an application on the grounds of labour shortage.
Please note:
It is the applicant's responsibility to submit the necessary documentation for a temporary work permit application. If all required documentation is not submitted with the application, it will result in a delay in the processing of the application or the application being declined. The Directorate of Labour may request additional documentation, should the directorate deem it to be necessary.
Where should the application be submitted?
Applications should be submitted to the Directorate of Immigration, Dalvegi 18, 201 Kópavogur, or alternatively to your local District Commissioner offices if you are located outside of the Capital Region.
Validity period of work permits due to a shortage of employees:
A temporary work permit due to a shortage of employees which is granted for the first time for a particular job may be granted for up to one year at a time. If it is determined that there is a shortage of staff due to seasonal fluctuations in the national labour market or due to seasonal tasks, such as slaughter season, such permits are granted accordingly. Work permits due to a shortage of staff can be renewed for up to two years.
Legally protected job titles and licensed trades
In instances of legally protected job titles or a licensed trade, a confirmation from the competent Icelandic authorities that the foreign national possess the required qualifications to perform the job for which he or she is to be hired must accompany the application. Further information regarding licensed trades and information regarding health professionals here.
Advertising the employment position
Please be informed that if the application is due to a shortage of employees, it may be necessary to advertise the position at The Directorate of Labour and via the EURES job portal. Advertisements can be lodged via ‘My pages’ for employers. An advertisement can be submitted electronically here.
When can the employee start working?
The employee may not commence work before the permit has been granted. All work permits are bound to a certain employer and are not transferrable to a new employer. A foreign national must therefore apply for a permit for each and every employer.
Application for a permit extension
When applying for an extension of a permit on the grounds of a labour-shortage, the same conditions must be fulfilled as the when the first permit was granted. The company may be required, amongst other things, to advertise the position in question again, unless The Directorate of Labour has granted an exemption. Please refer to the conditions specified above. Furthermore, the employer must have must have paid tax deductions at source and social security tax regarding the foreign national’s employment in accordance with the legislation.
The foreign national is generally permitted to work while the application for the permit extension is being processed. It is however a condition that the application for an extension be submitted to The Directorate of Immigration at least four weeks before the previous permit expires.
New employer
If the foreign national who has been issued a permit due to labour market shortages would like to change employers, they are required to apply for a permit with their new employer. The foreign national is prohibited to commence employment with their new employer before the permit has been granted. In other respects, the application process is the same as when applying for a work permit due to a shortage of employees for the first time. Please refer to the conditions specified above.
Termination of employment
A foreign national with a work permit due to a shortage of employees who loses their job can apply for a 6-month residence permit at The Directorate of Immigration in order to look for another job. See more on the Directorate of Immigration's website.
If the employment is terminated before the permit expires, The Directorate of Labour must be informed of the termination. An email to workpermits@vmst.is is considered a sufficient notification.
In instances of termination, the relevant provisions of the applicable collective bargaining agreement apply.
