Characteristics of the Scandinavian model of legal regulation of labor relations (on the example of Iceland)

Abstract

This article considers scandinavian legal regulation of labor relation on the example of Iceland. The author analysed the basic laws governing labor relations, and concluded that Icelandic labor law works in conjunction with collective agreements. The rules and conditions of collective agreement are more adapted to specific types of organisations, unlike legislation rules of which applies to all types of organisations. Collective agreements are binding for all parties to the agreement, regardless of whether they are organizations or individuals. The responsibility for the company lie with employers’ confederations, trade unions and employees, that’s why the state doesn’t interfere in regulation of wages, working conditions and social protection, because they are mainly guaranteed by collective agreements, not by legislation. Labor disputes in Iceland are divided into “disputes of law” and “disputes of interest” and have different resolution mechanisms. “Disputes of law” concern the interpretation or application of the provisions of labor law: differences in the meaning of the statutes; provisions of individual employment contracts; provisions of collective agreements; and other legally binding provisions. “Disputes of interest” concern the establishment of new laws by agreeing on the contradictory content of collective agreements, working conditions etc. There are two stages of Icelandic procedure of labor disputes : 1) negotiations; 2) trial. Icelandic Labor Court is an integral part of the corporate structure of labor market. Labor Court is responsible for setting and creation of case law and balance industrial relations system and labor law. Another important role in Icelandic labor market is played by trade unions. By signing collective agreements with employers’ organisations trade unions strength labor market and provide employees with better working conditions that are more adapted to specified categories of industries.