From Iceland — Do Shit: Whether You’re Fired Or You Quit, You Have Rights

Do Shit: Whether You’re Fired Or You Quit, You Have Rights

Published April 7, 2025

Do Shit: Whether You’re Fired Or You Quit, You Have Rights
Photo by
Art Bicnick for The Reykjavík Grapevine

The Útlendingur’s ongoing guide to getting shit done

Jobs. You can’t live with them, you can’t live without them. Well, fine, you can live with them — a lot of people have jobs they love, with employers and colleagues they gel with — but it’s a lot harder to live without them. You know, since jobs = money and money is needed for practically every aspect of survival. 

But what if you’ve heeded the words of Beyoncé and decided to “release ya job”? Worse yet, what if your employer has decided to release you from “ya job”? 

Fret not. And get on the phone with your union post haste to make sure that everything is above board and you’re getting everything you’re owed and fulfilling your own duties to your soon-to-be-former employer. 

Note the notice period 

“You should always get a notice period, that’s the first thing,” says Aðalheiður Rán Þrastardóttir, an employment specialist with VR union. “It’s very seldom that you don’t get a notice period — never, really — and if you are ever fired without a notice period, always come to your union.” 

The key to nailing down the duration of our notice period is having a written termination letter. Whether you have resigned or you’re being let go, having the details of the contract termination in writing is key. And that stands even if you’ve never had a written contract in place, as Aðalheiður Rán explains that any working relationship that has produced pay slips falls under the unions’ collective agreements and, as such, comes with the same requirements for notice periods of varying length. How long? That also depends on with which union you are a member. 

“It is different between the collective agreements,” Aðalheiður Rán explains. “So each job has their collective agreement. If you work in cleaning, for example, then you usually go by a collective agreement made by a union like Efling and you have a specific notice period. Then, if you work in a shop or office, there is usually the collective agreement for VR, which has its own notice periods.” 

The difference is significant, with Aðalheiður Rán explaining that someone who has been working six months under Efling’s collective agreement would have a one-month notice period, while someone who has been working six months under VR’s agreement at the time of resigning or being laid off would have a three-month notice period. 

“You should always finish your notice period,” Aðalheiður Rán emphasises. “It’s a mutual notice period, which means that whether you quit or you’re laid off, you have the same notice period. You can always make an agreement to leave sooner, whether you’re terminated or if you resign yourself — if you make an agreement and everybody’s happy with it, then the agreement stands. But it should be in written form so you can prove that you made this agreement.”  

In fact, if you, as an employee, resign or are terminated and decide to just ghost your former employer, you could be on the hook to compensate the company you’re effectively scorning. How much compensation depends on your monthly wages. But any amount would likely sting. 

Get what’s yours 

So now you know that you’re going to be working a few more months after being fired or quitting — it’s like the job market’s equivalent of saying goodbye to someone and then awkwardly walking in the same direction — but what about getting any money you’re owed? 

Your pay, whether set salary or hourly wages, will continue so long as you’re working your notice period. Then you’re also owed pay for any vacation days or overtime you have accrued. 

“On your last salary slip, you should have the accrued vacation days, which is orlof, and also the proportional pay, like December and holiday bonuses,” Aðalheiður Rán explains. She adds that you may have additional accrued amounts owed, so it’s best to familiarise yourself with your payslip and speak with your union.   

As for when an employer is meant to pay out accrued vacation days, Aðalheiður Rán doesn’t hesitate: “Always with the last payslip.”  

“It’s best to call your union or send an email or come by then not to have done it and figure out that you have a specific right that hasn’t been upheld until it’s too late,” she says. “Usually, if you get a termination letter and you get a notice period, it’s usually correct, but it can be done incorrectly. For example, if a person tells [their employer] that they’re pregnant and are laid off. That’s not usually legal, but in certain cases it is. It’s always just good to ask.” 

Onwards 

So, there you have it. You now know what to do when you are either fired or make the decision to put an employer in the rearview. 

All there is to do now is start looking for a new job (or figure out how to turn that side hustle into a lucrative endeavour) and reach out to the Directorate of Labour (Vinnumálastofnun) to learn what unemployment benefits you might be entitled to. 


Follow the Grapevine’s Do Shit series to collect tips and tricks for navigating life and bureaucracy in Iceland.

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