What's Happening?
A recent report by the Icelandic Confederation of Labour has raised concerns over work contracts in Iceland's travel industry. The findings, presented after a joint monitoring effort, revealed issues such as 'pseudo-contracting' and permit violations.
An inspection campaign conducted in summer 2025 involved interviews with 404 individuals and the recording of 325 company IDs in passenger transport and tour guiding. The report found that many contracts resemble standard employment despite being set up as independent agreements, with contractor fees often below required levels. Additionally, non-EEA tour guides were found working without necessary qualifications.
Why It's Important?
The report's findings highlight significant labor issues within Iceland's travel industry, which could impact the sector's reputation and operational integrity. 'Pseudo-contracting' undermines workers' rights and can lead to exploitation, while unqualified guides pose safety and quality risks. These issues necessitate stronger regulatory oversight and enforcement to ensure fair labor practices and compliance with legal standards. The travel industry is a vital part of Iceland's economy, and addressing these concerns is crucial for maintaining its sustainability and ethical standards.
What's Next?
The Icelandic Confederation of Labour, along with other authorities, is likely to push for continued oversight and stricter enforcement of labor laws in the travel industry. This may involve increased inspections and penalties for non-compliance. The findings could also prompt discussions on policy reforms to better protect workers' rights and ensure fair working conditions. Industry stakeholders, including tour operators and government agencies, will need to collaborate to implement effective solutions and restore confidence in the sector.
