Electronic time tracking now required by law

New time tracking laws take effect 1 July 2024.

As of 1 July 2024, new laws take effect in Iceland requiring employers to record employee working hours accurately and electronically. These are Act No. 58/2023, amending the Act on working environment, health and safety at workplaces No. 46/1980.

What do the new laws involve?

The main goal of the laws is to ensure better oversight of working and rest time and to strengthen employee rights. Employers are now required to:

• •Record all employee working hours electronically.
• •Keep accurate records showing the start and end of the working day along with total hours worked.
• •Retain time records for at least four years.
• •Give employees access to their own working time information.

Paper-based recording is only permitted in special exceptional cases as determined by the minister.

Why these changes?

The changes are part of aligning the Icelandic labour market with European legislation and ensuring that employees receive legally mandated rest time and that overtime is correctly recorded and paid. Electronic recording increases transparency and allows both employees and employers to easily monitor working hours and rights.

What does this mean for businesses and employees?

Businesses need to adopt an electronic time tracking system and ensure all employees are clocked in and out of work. Employees have the right to see their time records and can thus monitor their own rights. Failure or neglect of time tracking can result in penalties or fines from the Work Environment Authority.

Source: [Act No. 58/2023 amending Act No. 46/1980](https://www.althingi.is/altext/stjt/2023.058.html)