Iceland
Posting Employees to Iceland – When Does the Posted Workers Directive Apply?
Is your company sending employees to Iceland to work?
Then it’s important to be aware of the applicable rules for posting – both in terms of social security and labour law.
A1 certificate – documentation for social security
Before the posting begins, the company must apply for an A1 certificate.
The A1 certificate documents that the employee continues to be covered by Danish social security throughout their stay abroad.
PWD registration – when is it necessary?
In addition to the A1 documentation, in some cases it may be legally required to register under the EU’s Posted Workers Directive (PWD).
The PWD aims to ensure that posted workers work under the same basic conditions as local workers in Iceland.
Whether you need to register the employee under the PWD depends on a number of factors, including
Duration of the work stay
Tasks and industry – certain sectors, such as construction, have stricter requirements.
The nature of the workplace
Company establishment – is your company registered outside of Iceland?
Etc.
Remember: If PWD registration is required and not done correctly or in a timely manner,
it can result in penalties, fines and, in the worst case, a ban on working in the country.
What do you need to provide for PWD registration?
When posting to Iceland, the employer must submit the following information, among others:
- Name, date of birth and contact details of the company liaison
- The role of the liaison (e.g. employer, employee, third party)
- Address, email and phone number
- Other data about work assignments, posting period and the employee’s condition
- And so on…
What is the purpose of PWD?
A PWD registration ensures that the company complies with Icelandic labour conditions and collective agreements, including
- Working environment and safety standards
- Rules for working hours and rest periods
- Holiday entitlements and days off
- Wages, benefits and compensation
- Tax issues and proper reporting