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Rights and Obligations
What do you need to know?
Contents
Unemployement Insurance – general information
Rights and Obligations.
Introduction to Available Services
Employme...
Vinnumálastofnun - VMST
The Directorate of Labour
Appertains to the Ministry of Welfare
In charge of national employment a...
VMST‘s Website
www.vinnumalastofnun.is
Registration – Employment Services - Counselling
Applications
Reception and registration of employment and unemployment be...
Mínar síður (e. My Pages)
• Electronic Documents (ísl. Rafræn skjöl)
Payslips (unemployment benefit calculations)
Salarysl...
Submit documents via ‘Mínar Síður’
Personal tax-credits
Mínar síður – Aðgerðir – Breyta persónuafslætti
Mínar síður – Actions – Change personal tax-credits
Résumé (CV)
Mínar síður – Aðgerðir – Breyta persónuupplýsingum
Mínar síður – Actions – Change personal information
It is i...
Entitlement to Unemployment Benefits
General Requirement
 Wage-earners aged between 18 and 70 years old with their legal ...
Unemployment Benefits
Basic unemployment benefits
are kr. 227.417 per month for full (100%) entitlement.
Income-related un...
Unemployment Benefit Payments
Unemployment benefits are paid on the first weekday of each month.
The pay-period is from th...
Confirmation of Job-search
 Job-search confirmation is made via VMST’s website / ‘Mínar síður’
 Job-search must be confi...
Confirmation of Job-search
When your job-search
has been confirmed,
you will received a
confirmation via e-mail.
If you do...
Job Seeking
in Iceland and Europe
• Information about available employment in Iceland is
available at www.vinnumalastofnun...
Job Seeking in Europe
U2 certificate
• Provides those who have a confirmed entitlement to unemployment
benefits, permissio...
Part-time employment
Part-time employment
• Information regarding the correct employment ratio and job-search ratio to be
...
Incidental employment
Incidental employment
• Incidental employment must be reported to VMST in advance, with at least one...
Incidental Employment -
Income Allowance Threshold
The income allowance threshold from incidental
employment is kr. 66.459...
Reporting Employment and Income
All income, grants and allowances must be reported to VMST via ‘Mínar síður’
Self-employment
• Open wage-payer registries are not permitted while
receiving unemployment benefits.
• Individuals are no...
Freelance projects
Job-seekers intending to work freelance projects on their own ID No. must
register as ‘not unemployed’ ...
All changes to your personal circumstances which may affect
your job-search must be reported to VMST, such as:
 Home addr...
Suspension Periods and Sanctions
Suspension periods or sanctions could be acquired in the following instances:
 Resignati...
Labour Market Measures
Labour market measures available:
Job-related training, courses, educational resources, employment-...
Job-related Labour Market Measures
 Workplace training (max. 8 weeks)
 Professional training (up to 6 months)
 Labour t...
Unemployment Benefits and Study
Generally, studying while seeking employment and receiving unemployment
benefits is not pe...
Courses and Study Grants
Courses
Organised by VMST and are offered to job-seekers who have a confirmed
entitlement to unem...
Other Grants and Discounts
Relocation grant
Grants can be provided due to relocation in Iceland should your legal
domicile...
Organised Job-search
Résumé (CV) and letter of introduction
Instructions on creating a CV and letter of introduction can b...
Letter of Introduction and Follow-up
Letter of Introduction
Is a letter sent when applying for employment. It connects you...
Job-search: Example of Summary Sheet
Remember to follow up applications via phone or e-mail.
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  1. 1. Rights and Obligations What do you need to know?
  2. 2. Contents Unemployement Insurance – general information Rights and Obligations. Introduction to Available Services Employment agency. Counselling. Labour market training programs. Job search Practical advice.
  3. 3. Vinnumálastofnun - VMST The Directorate of Labour Appertains to the Ministry of Welfare In charge of national employment agency and unemployment insurance fund service. Operates according to legislation: Act No. 54/2006 on Unemployment Insurance. Act No. 55/2006 on Labour Market Measures. Legislation objective: • To provide individuals with appropriate assistance with being active participants in the labour market. • To promote a balance between the supply and demand of labour in Iceland.
  4. 4. VMST‘s Website www.vinnumalastofnun.is
  5. 5. Registration – Employment Services - Counselling Applications Reception and registration of employment and unemployment benefit applications, certificates and other supporting documents. Employment Services Provide information regarding available employment and job-related labour market training programs. Counsellors Provide information and counselling to job-seekers. Benefit Entitlement Rulings Application processing and benefit entitlement rulings from the Payment Office may take up to six weeks from the date of reception of all required documents. It is therefore important to submit all required documentation as quickly as possible. Information regarding your application's status can be found in ‘Mínar síður’ Mínar síður (e. my pages)/umsóknir (e. applications)/ staða umsóknar (e. application status)
  6. 6. Mínar síður (e. My Pages) • Electronic Documents (ísl. Rafræn skjöl) Payslips (unemployment benefit calculations) Salaryslips Letters • Applications (ísl. Umsóknir) Application for unemployment benefits and job-search registration Application status • Actions (ísl. Aðgerðir) Registration as a job-seeker, without benfit claim De-registraton from unemployment registry Report employment and income Submit documentation Change personal tax-credit information Report vacations Change personal information
  7. 7. Submit documents via ‘Mínar Síður’
  8. 8. Personal tax-credits Mínar síður – Aðgerðir – Breyta persónuafslætti Mínar síður – Actions – Change personal tax-credits
  9. 9. Résumé (CV) Mínar síður – Aðgerðir – Breyta persónuupplýsingum Mínar síður – Actions – Change personal information It is important to have a CV during your job-search. In order to be of use to VMST‘s employment center, it is necessary to attach your CV to your application as soon as it is complete. You are able to amend it at a later time via ‘Minar Síður’.
  10. 10. Entitlement to Unemployment Benefits General Requirement  Wage-earners aged between 18 and 70 years old with their legal domicile registered in Iceland.  Job-seekers must be situated in Iceland to be entitled to benefit payments for the registered job-seeking period. Requirements of active job-search:  Be fit to work in most general employment. A doctor‘s certificate must be submitted if your ability to work is imapaired.  Initiative for job-search and willingness to accept employment in Iceland which is paid according to legislation and collective agreements.  Willing and able to participate in programs per Labour Market Measures legislation. The benefit entitlement period is 30 months.
  11. 11. Unemployment Benefits Basic unemployment benefits are kr. 227.417 per month for full (100%) entitlement. Income-related unemployment benefits Income-related benefits are paid for three months, commencing half a month after the benefit entitlement period begins. Basic benefits are therefore paid for the first half-month.  Wage-earner 70% of the average wages earned in the six month period, two months before the applicant became unemployed.  Self-employed 70% of the average wages for the last pay-year period. Maximum income-related benefits: kr. 358.516 per month. Child supplement: kr. 9.097 per month for each dependant child under the age of 18 years old is supplemented to the benefit payment, regardless of benefit entitlement proportion.
  12. 12. Unemployment Benefit Payments Unemployment benefits are paid on the first weekday of each month. The pay-period is from the 1st until the 31st of each month. Each month is paid separately and is for the previous month. Illness All illness which hinders your job-search must be reported to the directorate. Job-seekers are entitled to 5 days of paid sick-days in each 12-month period, although only after 5 months of the benefit entitlement period has been used. Paid sick-day periods can only be taken in two separate periods. Travel • Unemployment benefits are not paid to job-seekers who are situated abroad. • All international travel and request for vacation registration must be reported to the directorate before departure. (Mínar síður-Aðgerðir-Tilkynna orlof) (Mínar síður – Actions – Report Vacation)
  13. 13. Confirmation of Job-search  Job-search confirmation is made via VMST’s website / ‘Mínar síður’  Job-search must be confirmed between the 20th and 25th of each month while registered as a job-seeker.  Should you forget to confirm your job-search within the designated period you are still able to confirm between the 26th and the 3rd of the next month, however your benefit payment will then be delayed for 5 working days. Failure to confirm your job-search will result in de-registration
  14. 14. Confirmation of Job-search When your job-search has been confirmed, you will received a confirmation via e-mail. If you don‘t receive an e-mail please contact VMST‘s nearest service center immediately.
  15. 15. Job Seeking in Iceland and Europe • Information about available employment in Iceland is available at www.vinnumalastofnun.is • Links to other recruitment agencies available at VMST’s website (Job search/Other recruitment agencies) • European jobs network portal www.eures.europa.eu • Job-brokers and Counsellors provide further information and assistance with seeking employment.
  16. 16. Job Seeking in Europe U2 certificate • Provides those who have a confirmed entitlement to unemployment benefits, permission to seek employment in Europe for up to three months while receiving unemployment benefit payments from Iceland. • Application processing time is 3-4 weeks. • Further information is available at the VMST service centers. International travel is not permitted while registered as a job-seeker and receiving unemployment benefits unless a U-2 certificate has been issued. Eures – European job network Information and advice about seeking employment in Europe.
  17. 17. Part-time employment Part-time employment • Information regarding the correct employment ratio and job-search ratio to be changed via ‘Mínar síður’. Estimated part-time income is also to be reported via ‘Mínar síður’ (Aðgerðir-Tilkynna um vinnu og tekjur-Tilkynna um hlutastarf) (Actions – Report employment and income – Report part-time employment)
  18. 18. Incidental employment Incidental employment • Incidental employment must be reported to VMST in advance, with at least one day notice via ‘Mínar síður’. (Aðgerðir – Tilkynna um tilfallandi vinnu) (Actions – Report incidental employment) Reports can be sent on the same day under special circumstances Applies to all incidental employment, regardless of length, time or income.
  19. 19. Incidental Employment - Income Allowance Threshold The income allowance threshold from incidental employment is kr. 66.459 per month. Example: Total income: kr. 96.459 Income threshold: kr. 66.459 Income exceeding threshold: kr. 20.000 When information regarding the income amount is obtained from the tax authorities two months later, half of the income exceeding the threshold is deducted from the benefit calculation. The deductions due to income are in this instance kr. 15.000
  20. 20. Reporting Employment and Income All income, grants and allowances must be reported to VMST via ‘Mínar síður’
  21. 21. Self-employment • Open wage-payer registries are not permitted while receiving unemployment benefits. • Individuals are not permitted to be self-employed and receive unemployment benefits at the same time.
  22. 22. Freelance projects Job-seekers intending to work freelance projects on their own ID No. must register as ‘not unemployed’ for the duration of the project. All freelance projects must be reported to the directorate in advance. (Aðgerðir/Tilkynna um vinnu og tekjur/Tilkynna verktakavinnu). (Actions/Report employmet and income/Report self-employment)
  23. 23. All changes to your personal circumstances which may affect your job-search must be reported to VMST, such as:  Home address, phone number, e-mail address.  Employment (incidental, part-time or full-time).  Other income (i.e. salary, pension, capital income, grants such as recreational grants and financial assistance).  Participation in studies while seeking employment.  Vacations and international travel without a U-2 certificate.  Illness which hinders an active job-search.  Work capacity (depleted or complete incapacity). Failure to report may lead to temporary suspension of benefits or other sanctions. Suspension period / Sanctions: Unemployment benefits are not paid for the duration of the suspension period. To complete the suspension period, the job-seeker must continue to actively seek employment, fulfill their duties according VMST and confirm their job-search each month. Obligation to Report
  24. 24. Suspension Periods and Sanctions Suspension periods or sanctions could be acquired in the following instances:  Resignation from employment.  Termination from employment due to own actions.  Withdrawal from studies before they are completed.  Decline to participate in labour market measures or minimum attendance not met.  Undertaking studies without applying for a study agreement.  Failure to report information about employment, income, international travel or change of contact information (home address, phone, or e-mail). All matters are directed to the Payment Office and a written explanation is requested before they are ruled upon. Sanctioned job-seekers who have received unemployment benefits for 24 months or longer, are not entitled to receive unemployment benefits again until they have worked in Iceland contiguously for at least 24 months and their benefit entitlement period has been renewed.
  25. 25. Labour Market Measures Labour market measures available: Job-related training, courses, educational resources, employment-related rehabilitation and counselling. Objectives:  Prevent unemployment.  Enable job-seekers to remain active.  Promote connections in the labour market.  Refresher courses and training – maintain and gain new skills.
  26. 26. Job-related Labour Market Measures  Workplace training (max. 8 weeks)  Professional training (up to 6 months)  Labour training (i.e. Fjölsmiðjan)  Special campaigns (up to 6 months)  Volunteering  Job-related rehabilitation  Entrepreneurships at companies or directorates (up to 6 months)  Innovations (previously ‘Development of own business ideas’) (up to 6 months) Further information is available at VMST’s website www.vinnumalastofnun.is
  27. 27. Unemployment Benefits and Study Generally, studying while seeking employment and receiving unemployment benefits is not permitted. However, if certain conditions are fulfilled you may be permitted to study while seeking employment. Such studies must be approved by VMST and fulfill conditions according to regulation No. 1223/2015 and a study agreement must be entered into. (see: https://vinnumalastofnun.is/en/unemployment-benefits/counselling/job-training-and-learning- opportunities) • Criteria for studying while seeking employment: • Daytime study at a secondary school level is not permitted while seeking employment and receiving benefits. • Permission to enter into a study agreement may be granted if certain conditions are fulfilled and after consulting with a Student and Careers Counsellor. However, only up to a 33% study ratio and only during evenings or via distance learning at a secondary school level. • Study agreements can be entered into for study at university level of up to 10 ECTS credits. Study beyond 10 ECTS credits will deplete benefits proportionately. Further information is available at the VMST website or from a Student and Careers Counsellor.
  28. 28. Courses and Study Grants Courses Organised by VMST and are offered to job-seekers who have a confirmed entitlement to unemployment benefits, free of charge. For further information please contact a Counsellor or visit VMST‘s website. Study grants Payments to subsidise fees for courses which are not organised by VMST. Subsidies are only granted to job-seekers who have a confirmed entitlement to unemployment benefits and for courses which increase employability. Up to 50% of the course fees can be subsidised, with a maximum of kr. 70.000 per year. • Applications for study grants are to be submitted to a Counsellor. (forms available at www.vinnumalastofnun.is ) All relevant information regarding the course should accompany the application. • Applications must be submitted before the course commences.
  29. 29. Other Grants and Discounts Relocation grant Grants can be provided due to relocation in Iceland should your legal domicile require you to relocate in order to commence permanent employment for a new employer. All invoices for expenses pertaining to your relocation must accompany the application. Labour Unions offer a wide range of services to their members who have lost their employment and are being paid unemployment benefits from VMST. Job-seekers may choose if they would like to continue to pay their union fees after they have registered as a job-seeker at VMST. Continued payments will maintain all accumulated rights. Some municipalities offer perquisites to job-seekers, such as free access to swimming pools. Job- seekers are advised to seek information from their local municipality.
  30. 30. Organised Job-search Résumé (CV) and letter of introduction Instructions on creating a CV and letter of introduction can be found at VMST‘s website. Counsellors are also available to assist if requested. Use the same approach in your job-search as you would at work with certain projects each day/week. Use various methods and activate your connections and networks. Set goals Preferably in writing, i.e one week at a time. Hold summaries of your activities: Jobs which you have been applied for, answers you have received from applications, attended job interviews, etc. It is also recommended that to have an overview of inquires made regarding employment and informal applications, contact people within your networks and communications with them. (See example of summary sheet on slide No. 32)
  31. 31. Letter of Introduction and Follow-up Letter of Introduction Is a letter sent when applying for employment. It connects you to your application for a certain job, gives a better image of who you are and what you are aiming for in employment. The letter of introduction should state the reason for applying and how your skills and experience can be utilised in the position you are applying for. Your CV should accompany the letter, as an attachment if sending via e-mail. Letters of introduction shouldn‘t be too long (max. one page). Follow-up It is important to follow up on submitted applications which have not been responded to shortly after the application deadline has expired. This can be done either by calling or sending an e-mail to inquire the status of hiring in the position.
  32. 32. Job-search: Example of Summary Sheet Remember to follow up applications via phone or e-mail.

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