Union raises concerns over Seigla’s employee treatment violations in Iceland

The Icelandic labor union has raised concerns regarding the employment agency Seigla, which has come under scrutiny for alleged violations involving employee treatment. Seigla, owned by the same individuals behind two other similar agencies in Iceland, is facing 34 open cases regarding labor law breaches, according to the union representatives.

These issues first came to light in spring 2023 after an employee of Seigla suffered an assault, prompting the union to step in for assistance. Since then, numerous additional cases have surfaced, attracting attention from the union, which is now receiving inquiries from both current and former employees about their working conditions. Gundega Jaunlinina, Vice Chair of the Hlíf Union, noted that there is a growing demand for transparency regarding unethical practices in the sector.

In response to these allegations, Seigla’s attorney, Skúli Sveinsson, denied any wrongdoing, claiming that the union had only formally pursued a single case related to Seigla, which revolved around the interpretation of European law. Sveinsson characterized the allegations as baseless, asserting they stem from a misunderstanding of recent legal interpretations rather than substantial violations of labor contracts.

The situation gained additional public interest following a recent episode of the investigative program Kveikur that discussed employment agencies and human trafficking in Iceland. The episode prompted varied responses from contractors and housing associations seeking clarification on working with such agencies, indicating heightened public awareness and concern over labor rights.