Government Unveils Labour Market Crime Strategy

2026-03-03 - 11:25

The Icelandic government has adopted its first formal policy aimed at tackling criminal activity in the labour market. As reported by RÚV, the new 13-point action plan is designed to run until 2028 and tackle, among other things, enhanced screenings of residency and work permits, as well as provide greater oversight regarding violations of collective agreements. What's the Story? 13-point government action plan adopted to address criminal activity in Iceland’s labour market; valid until 2028 Developed by a committee appointed by the Minister of Social Affairs and Housing, in cooperation with social partners Measures include stronger inter-agency cooperation, enhanced screening of work and residence permits, and improved protections for victims of human trafficking Keflavík Airport. Photo: Golli Thirteen-point plan The strategy, developed in cooperation with social partners, seeks to prevent worker exploitation and unfair competitive practices, including social dumping and falsified invoices. It also addresses organised crime and human trafficking linked to employment. The plan was prepared by a committee appointed last year by the Minister of Social Affairs and Housing. According to Ragnar Þór Ingólfsson, violations in the labour market are unacceptable and require firm action. “The strategy and action plan mark a milestone, and their implementation shows how much success good collaboration can bring,” says Ragnar Þór. Measures include closer cooperation between the police, the Tax Authority and the Occupational Safety and Health Administration. Authorities also intend to strengthen oversight, improve follow-up on reported violations, and ensure compliance with collective agreements and labour laws. The plan proposes enhanced screening of residence and work permit applications to detect possible criminal activity or human trafficking. Victims of trafficking would receive strengthened residence protections, while applicants from trusted employers may benefit from expedited processing. A new collaboration platform will facilitate information-sharing among institutions, municipalities and labour market stakeholders.