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- Overview
Employment Termination in Iceland
Termination process
Employee contracts can be terminated at will if prior notice is provided. Employers are not required to provide any specific reason for terminating an employee.
Notice period
Both employers and employees are required to provide notice three months before resignation or termination unless otherwise specified in the employment contract.
Severance pay
There is no legally mandated severance pay, but unions can negotiate a mutual rate applicable to their members.
Probation periods
Probations periods are typically capped at three months into the new job.