Temporary-work agencies

Duty to provide information

Act No. 139/2005 applies to temporary-work agencies on the domestic labour market and to their employees. ‘Temporary-work agency’ denotes a service company which hires out workers in return for a fee to carry out work at the workplace of a user undertaking under the direction of the latter. Temporary-work agencies that are not established in the European Economic Area or in an EFTA state may not provide services in Iceland without becoming established in the country unless this is permitted under an agreement to which Iceland is a party.

Any person, whether domestic or foreign, wishing to provide temporary-work agency services in Iceland, shall notify the Directorate of Labour of this not later than on the day when the operations first begin.

If a temporary-work agency intends to provide services in Iceland for a total of more than ten working days in each twelve-month period, the Directorate of Labour shall be supplied with information on the workers who will work in Iceland, with details of their places of residence, the length of their stay, the name and ID No. of the user undertaking, etc.

Registration of temporary-work agencies and notifications about workers posted in Iceland can be done electronically here.

Wages and terms

During the time when workers are carrying out work for user undertakings, they shall receive at least the same wages and other terms of service as they would have had if they had been engaged directly by the user undertaking for the same jobs. In all cases, the Directorate of Labour requires copies of employment contracts to be submitted to it in order to ensure that these workers receive correct wages and terms. The Directorate will also check in all cases whether the terms of service are in line with collective agreements made in Iceland.


A temporary-work agency that provides services in Iceland for a total of more than ten working days in each twelve-month period shall have a representativein Iceland. The representative may be one of the company’s workers who are temporarily employed in Iceland. The company’s representative shall represent it and be responsible for providing the authorities with information according to law.

User undertakings

An Icelandic user undertaking that makes use of the services of a temporary-work agency shall be obliged to request written confirmation that it has discharged its duty to provide information to the Directorate of Labour.

A worker who has previously worked for a user undertaking may not be hired out to the same undertaking until six months have elapsed. Furthermore, the temporary-work agency may not restrict the right of a worker who has been hired out to a user undertaking to enter into a subsequent employment relationship with that undertaking.

Registered temporary-work agencies

Following companies are registered temporary-work agencies :

11.04. 2018:

Nordic Workforce ehf. 780817-1110
Osauhing Rengrupp  
GSC Verktakar ehf 531271-1520
Iceland Recruitment ehf  670715-0780
Arctic B C Iceland ehf 461217-0360
Ztrongforce ehf 641017-0270
Vigas ehf. 470617-1790
Menn í vinnu ehf 690598-3379
Rubik Solutions ehf 430216-0820
Sterkafl ehf 660417-1760
SIA Komforts3  
AD Verktakar ehf 700816-1330
Staff Connections ehf 711016-0660
SG Bygg ehf 550607-0770
UAB Selectant  
BKS Industri AS  
Handafl ehf.  590811-1220
Concretum Iceland ehf 460416-0190
IRC ehf 560616-0150
GEODATA Projekt d.o.o  
Norbygg ehf 520416-0990
Cooley Food Consultants  
YABIMO ehf 650116-0380
Verkleigan ehf 440316-0850
Elja ehf 501115-0960
Grandaverk ehf.  590115-1180
Íslensk verkmiðlun ehf.  500615-1250
Valbjörg ehf. 600303-2360
TuCon Iceland ehf 640608-0990
Marti Contractors Ltd.  
Marti Gmbh  


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