Iceland is stepping up efforts against labour trafficking after a high-profile case involving a Vietnamese–Icelandic businessman exposed widespread exploitation of foreign workers.
In March 2024, police raided restaurants and hotels in Reykjavik owned by Quang Le, who is accused of forcing Vietnamese employees to pay large sums for jobs, while subjecting them to long hours, threats, and salaries below legal standards. He remains in custody awaiting charges.
The case sparked public debate and pushed the Icelandic Confederation of Labour (ASÍ) and the Confederation of Icelandic Enterprise (SA) to strengthen inspections and cooperation. A national conference was held last year, and the government is now preparing a new action plan to combat workplace crime.
Authorities report a sharp increase in tips since the case came to light, including in industries such as construction, hospitality and tourism, where foreign workers are particularly vulnerable. Employers are also beginning to request guidance to prevent exploitation within their own companies.
Both unions and employers stress that protecting workers from trafficking is essential to maintain fair competition and safeguard Iceland’s labour market model. The outcome of the Quang Le trial is expected to shape future legislation on labour exploitation in Iceland.
Authorities, and criminal defense lawyers, report a sharp increase in tips since the case came to light, including in industries such as construction, hospitality and tourism, where foreign workers are particularly vulnerable. Employers are also beginning to request guidance to prevent exploitation within their own companies.
