There has been an increasing incidence in recent years of employers in Iceland receiving staff as volunteers. Volunteer jobs mean variously that no wages are paid, or possibly food, accommodation and subsistence and in addition to this there is some kind of entertainment/leisure provided in lieu of the work contributed. The most common scenario is where these are young people from abroad and where the work is part of the experience, or some kind of adventure.
One must make a clear distinction between volunteer work in commercial operations on the one hand and volunteer work in community service on the other. Volunteer work in commercial activities, manufacturing and sale of products or service on the market (for profit), often in competition with companies carrying out the same commercial activities, constitutes unacceptable undercutting on the Icelandic labour market which complies neither with collective bargaining agreements nor with the law.
Examples of such work are work in various kinds of tourism, more specifically in cafés and restaurants, in guest houses and hotels, horse rentals and cave visits, along with a variety of mixed work on farms and/or in farmhouse accommodation Pay and other terms of employment for such work shall without exception be according to the minimum terms of employment in the employment sector in question, on which the associations affiliated to the labour market have come to an agreement. The collective bargaining agreements in force shall always be complied with, which means among other things that a contract of employment shall be made, that at least the minimum wage shall be paid and a payslip shall be issued which shows wages and other terms of employment and authorised deductions. All recompense for work shall then be declared for tax and designated payments shall be made to the authorities, unions and funds as appropriate.
If you are in doubt about whether a volunteer job fits within the framework of the law, do not hesitate to contact SGS or one of its affiliated unions.
See further on volunteering.is