Notice Period
The notice period for termination in the general labour market is reciprocal, and its length is determined either by law, collective agreements, or the employment contract. All notices of termination must be in writing and generally take effect at the end of a calendar month.
During the first two weeks of employment, there is no notice period.
After two weeks of continuous employment with the same employer: 12 calendar days.
After 3 months of continuous employment with the same employer: 1 month, effective at the end of a calendar month.
After 2 years of continuous employment with the same employer: 2 months, effective at the end of a calendar month.
After 3 years of continuous employment with the same employer: 3 months, effective at the end of a calendar month.
If an employee is dismissed after at least 10 years of continuous employment with the same employer, the notice period shall be four months if the employee has reached the age of 55, five months at the age of 60, and six months at the age of 63. The employee however may resign with three months’ notice.
For further details, see Chapter 12 of the collective agreement between SGS and the Confederation of Icelandic Enterprice(SA).