Report Raises Concerns Over Travel Industry Work Contracts

2026-02-13 - 10:38

An inspection campaign carried out during summer 2025 has identified indications of so-called “pseudo-contracting” and permit issues within Iceland’s tourism industry. As reported by RÚV, the findings were presented yesterday by the Icelandic Confederation of Labour following a joint monitoring effort focused on passenger transport and tour guiding. What's the Story? Monitoring campaign in summer 2025 by ASÍ, with police, Tax Authority and Occupational Safety and Health Administration 404 individuals interviewed and 325 company ID numbers recorded in passenger transport and tour guiding Evidence of pseudo-contracting and cases of non-EEA tour guides working without required qualifications Photo: Golli. Seljalandsfoss on the South Coast Workplace checks conducted A total of 404 individuals were interviewed and 325 company identification numbers recorded. According to the report, such contracting arrangements are widespread among tour guides and bus drivers. Inspectors found evidence of what the local media is describing as “pseudo-contracting”, where working conditions resemble standard employment despite contracts being set up as independent contracting agreements. The report states that contractor fees are often below the level required to meet costs and uphold rights guaranteed under collective agreements. Inspectors also identified cases in which tour guides from outside the European Economic Area, particularly from China, were carrying out guiding duties without the professional qualifications required in Iceland. The initiative was organised by ASÍ in cooperation with the police, the Tax Authority and the Occupational Safety and Health Administration. ASÍ stated that the results point to the need for continued coordinated oversight to ensure compliance and fair conditions in the sector.