Supported Employment (SE) and Employment Contract

Employment contract

A Work Contract for People with Disabilities is a contract designed to enable individuals to be hired for work and/or training. To be eligible for a work contract, the individual must receive certain payments from the Social Insurance Administration, such as a disability pension, a disability allowance, or a rehabilitation allowance. How does one go about it?

It is best to schedule an appointment with a counselor at the Employment Service.

Through a case manager, a contract is made between the Employment Service and an employer in the general labor market. The Employment Service reimburses the employer a percentage of wage costs and payroll-related expenses. The rate paid by the Employment Service for the first two years is 75%, but the payment then decreases by 1% every 12 months until the minimum reimbursement rate of 25% is reached. The reimbursement never falls below 25%, but this rate must be applied for annually to continue. Vinnumálastofnun reimburses the employer monthly for a percentage of the employee's wages in exchange for copies of pay stubs.

A fixed-term employment contract can be made, with a minimum duration of 3 months. However, for students, it is possible to make shorter contracts (e.g., for a summer job).

An employment contract may be made for both full-time and part-time work, for example, for a half-day job, but an employee can only have a contract with one employer at a time. The work percentage may be up to 100%. An employment contract is made that must be the same as the one currently in effect between an employer and an employee. The Employment Office does not participate in the payment of overtime, shift differential pay, or bonuses, except in exceptional cases, in which case a separate agreement is made. The contract shall specify the place of employment and the duties the employee is expected to perform. Reduction of benefits during the employment period is subject to general provisions regarding the reduction of benefit payments based on income.

An individual who has found a job can contact the Employment Service to enter into an employment agreement if they wish, but the reimbursement is not retroactive.

You can read more detailed information about employment contracts on the Vinnumálastofnunar website. Iceland.is.