The EFTA Surveillance Authority (ESA) has today sent a letter of formal notice to Iceland requesting the country to correctly implement EEA rules on minimum rest periods and maximum working hours by introducing an obligation to record working time.

The current legal framework in Iceland does not contain an obligation on employers to set up a system for the recording of working time. The Icelandic Government in 2020 stated that it intended to adopt a new legislative provision introducing such an obligation on employers but has yet to do so.

In its letter, ESA concludes that Iceland has not fulfilled its obligations under the Working Time Directive, which has been interpreted by the Court of Justice of the European Union as requiring employers in EEA States to set up an objective, reliable and accessible system recording hours worked by employees.

ESA finds that Iceland is also in breach of Article 7 of the EEA Agreement, which requires the States to fully implement directives into their legal order.

A letter of formal notice is the first step in an infringement procedure against an EEA EFTA State. The Icelandic Government now has two months to express its views before ESA decides whether to take the case further.

Read ESA’s letter of formal notice here.

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