Employment contracts serve as documentation for workers regarding their terms of employment, rights, and obligations. They may not deviate from the minimum provisions of collective agreements nor include clauses that restrict statutory rights.
According to the collective agreement between SGS and the Confederation of Icelandic Employers (SA) for employees in the general labour market, if an employee is hired for longer than one month and works on average more than eight hours per week, a written employment contract must be made—or the employment confirmed in writing—no later than two months after the commencement of work. The employment contract shall include at least the following:
1. Identification of the parties, including ID numbers.
2. Workplace and the employer’s address.
3. Job title, position, nature, or type of work the employee is hired to perform, or a brief outline or description of the job.
4. First day of employment.
5. Duration of employment if it is a fixed-term contract.
6. Annual leave entitlement.
7. Notice period for both the employer and the employee.
8. Monthly or weekly wages, e.g., with reference to wage tables, the monthly wage on which overtime is calculated, other payments or benefits, as well as the pay period.
9. Length of the regular working day or working week.
10. Pension fund.
11. Reference to the applicable collective agreement and the relevant trade union.
For further details, see Chapter 1 of the collective agreement between SGS and the Confederation of Icelandic Enterprice (SA).