
1985 No. 1202
SOCIAL SECURITY
The Social Security (Iceland) Order 1985
Made 31st July 1985
Coming into Operation 1st August 1985
At the Court at Buckingham Palace, the 31st day of July 1985Present,The Queen's Most Excellent Majesty in CouncilWhereas at Reykjavik on 25th August 1983 a Convention on social security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Iceland (which Convention is set out in the Schedule to this Order and is hereinafter referred to as “the Convention”) was signed on behalf of those Governments:And Whereas by Article 32
of the Convention it is provided that the Convention shall enter into force
on the first day of the second month following the month in which the instruments
of ratification are exchanged:And Whereas the Convention has been ratified by the said Governments
and the instruments of ratification were exchanged on 28th June 1985 and accordingly
the Convention enters into force on 1st August 1985:And Whereas by section 143 of the Social Security
Act 1975
it is provided that Her Majesty may by Order in Council make provision for
modifying or adapting the said Social Security Act in its application to cases
affected by agreements with other governments providing for reciprocity in
matters specified in that section:Now, therefore, Her Majesty, in pursuance of the said section 143 and of all other powers enabling
Her in that behalf, is pleased, by and with the advice of Her Privy Council,
to order, and it is hereby ordered, as follows:
Citation and commencement
1 
This Order may be cited as the Social
Security (Iceland) Order 1985 and shall come
into operation on 1st August 1985.
Modification of the Social Security Act 1975
2 
The Social Security Act 1975 shall be modified to such extent as may be required to give effect to the provisions contained in the Convention so far as the same relate to England, Wales and Scotland.
G.I. de Deney
Clerk of the Privy Council
for the Government of the United Kingdom of Great Britain and Northern Ireland:
Richard Thomas
for the Government of Iceland:
Geir Hallgrimsson

SCHEDULE


CONVENTION ON SOCIAL SECURITY BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF ICELAND
The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Iceland; 
Being resolved to co-operate in the field of social affairs and, in particular, in the matter of social security; 
Desirous of promoting the welfare of persons moving between or working in their respective territories; 
Desirous of making arrangements for insurance periods completed under the legislation of the Parties to be added together for the purpose of determining the right to receive benefit; 
Desirous further of making arrangements enabling persons moving between their respective territories to keep the rights which they have acquired under the legislation of the one Party or to enjoy corresponding rights under the legislation of the other;
Have agreed as follows:— 

PART I GENERAL PROVISIONS
ARTICLE 1 

(1) For the purpose of this Convention:
(a) “legislation” means in relation to a Party such of the legislation specified in Article 2 of this Convention as applies in the territory of that Party or in any part thereof;
(b) “competent authority” means the authority responsible for the social security schemes in all or part of the territory of each Party; in relation to the United Kingdom, the Secretary of State for Social Services, the Department of Health and Social Services for Northern Ireland, the Isle of Man Board of Social Security and the Social Security Committee of the States of Jersey as the case may require, and, in relation to Iceland, the Ministry for Health and Social Security;
(c) “insurance authority” means the authority
competent to decide entitlement to the benefit in question;
(d) “competent
institution” means the authority
from which the person concerned is entitled to receive benefit or would be
entitled to receive benefit if he were resident in the territory of the Party
where that authority is situated;
(e) “insured” means , in relation to the United Kingdom,
that contributions have been paid by or are payable by, or in respect of,
or have been credited in respect of, the person concerned, or for the purposes
of Articles 12 to 14
of this Convention, that the person is, or is treated as being, an employed
person;
(f) “insurance
period” means , in relation to
the United Kingdom, a contribution period or an equivalent period and, in
relation to Iceland, a period during which a person has been insured in respect
of the contingency for which benefit is being claimed;
(g) “contribution
period” means a period in respect
of which contributions appropriate to the benefit in question are payable,
have been paid or have been treated as paid under the legislation in question;
(h) “equivalent
period” means , in relation to
the United Kingdom, a period for which contributions appropriate to the benefit
in question have been credited;
(i) “dependant” means a person who would be treated
as such for the purpose of any claim for an increase of benefit in respect
of a dependant under the legislation of the United Kingdom or Iceland;
(j) “pension”, “allowance”
or “benefit” includes any increase of, or any additional amount payable with,
a pension, allowance or benefit respectively;
(k) “sickness
benefit” means , in relation to
Iceland, per diem sickness benefit;
(l) “invalidity
pension” means , in relation to
the United Kingdom, invalidity benefit, other than non-contributory invalidity
pension, and, in relation to Iceland, invalidity pension and invalidity grant;
(m) “old
age pension”, in relation to the United Kingdom, includes
a retirement pension and, in relation to Iceland, means a basic old age pension;
(n) “widow's
benefit” means , in relation to
the United Kingdom, widow's allowance, widowed mother's allowance and widow's
pension and, in relation to Iceland, widow's or widower's benefit and widow's
pension;
(o) “orphan's
benefit” means , in relation to
the United Kingdom, guardian's allowance and child's special allowance;
(p) “gainfully
occupied” means being an employed
or self-employed person;
(q) “employed
person” means a person who comes
within the definition of an employed person or a person who is treated as
such in the applicable legislation and the words “person is employed” shall be construed accordingly;
(r) “employment” means employment as an employed person and the words “employ”, “employed”
or “employer” shall be construed accordingly;
(s) “self-employed
person” means a person who comes
within the definition of a self-employed person or a person who is treated
as such in the applicable legislation and the words “person is self-employed” shall be construed accordingly.
(t) “Agreement” means the agreement dated 2 May 1992 and made between the European Community, its Member States and the European Free Trade Association States establishing the European Economic Area;
(u) “Regulation EEC 1408/71” means the Regulation (EEC) No 1408/71 of the Council on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community and includes amendments and adaptations from time to time applicable thereto;
(v) “Implementing Regulation” means the Regulation (EEC) No 574/72 of the Council laying down the procedure for implementing Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to their families moving within the Community and includes amendments and adaptations from time to time applicable thereto;
(2) Other words and expressions which are
used in this Convention have the meanings respectively assigned to them in
the legislation concerned.
(3) The present Convention applies also to
the Isle of Man and Jersey, and references to “the United Kingdom”
or to “territory” in relation to the United Kingdom shall be construed
accordingly, where appropriate.
ARTICLE 2 

(1) The provisions of this Convention shall
apply,
(a) in relation to the United Kingdom, to:
(i) the Social Security Acts 1975 to 1982
and the Social Security (Northern Ireland) Acts 1975 to 1982;
(ii) the Social Security Acts 1975 to 1982
(Acts of Parliament) as applied to the Isle of Man by Orders made under the
provisions of the Social Security Legislation
(Application) Act 1974 (an Act of Tynwald);
(iii) the Social
Security (Jersey) Law 1974;and the legislation which was consolidated by those Acts, Laws
or Orders or repealed by legislation consolidated by them;
(b) in relation to Iceland, to:
(i) the National
Insurance Act No 67/1971, as amended;
(ii) the Unemployment
Insurance Act No 64/1981.
(2) Subject to the provisions of paragraphs (3), (4)
and (5) of this Article,
this Convention shall apply also to any legislation which supersedes, replaces,
amends, supplements or consolidates the legislation specified in paragraph (1) of this Article.
(4) This Convention shall apply to any legislation
which relates to a branch of social security not covered by the legislation
specified in paragraph (1)
of this Article only if the two Parties make an agreement to that effect.
(5) This Convention shall not apply to Regulations
on social security of the Council of the European Communities or to any convention
on social security which either Party has concluded with a third party or
to any laws or regulations which amend the legislation specified in paragraph (1) of this Article for the purpose
of giving effect to such a convention but shall not prevent either Party from
taking into account under its legislation the provisions of any other convention
which that Party has concluded with a third party.
ARTICLE 2A 

(1) Subject to paragraph (2), this Convention shall as from the date of entry into force of the Agreement and as regards relations between England, Scotland, Wales, Northern Ireland and Iceland cease to apply to all persons to whom the provisions of Regulation EEC 1408/71 and the Implementing Regulation are at that date or subsequently become applicable. Any rights in course of acquisition under this Convention immediately before the date of entry into force of the Agreement shall as regards persons with respect to whom the Convention ceases to apply by the provisions of this paragraph be determined in accordance with the provisions of those Regulations.
(2) The provisions of this Convention shall continue to apply to:
(a) any award of a benefit, pension or allowance made prior to the date upon which the Agreement comes into force;
(b) any claim to a benefit, pension or allowance made but not determined at the date upon which the Agreement comes into force;
(c) any claim to a benefit, pension or allowance made after the date the Agreement comes into force but only where that claim relates to entitlement to such benefit, pension or allowance for a period prior to the date upon which the Agreement comes into force.
ARTICLE 3 

(1) Subject to the provisions of Articles 13, 14
and 29 of this Convention,
a person who would be entitled to receive an old age pension, widow's benefit,
invalidity pension, or any pension, benefit, allowance or gratuity payable
in respect of an industrial injury, industrial disease or industrial death
under the legislation of one Party if he were in the territory of that Party
shall be entitled to receive that pension, benefit, allowance or gratuity
while he is in the territory of the other Party, as if he were in the territory
of the former Party. For the purposes of this Article only, the term “old age pension” in relation to Iceland
means basic old age pension and benefits payable from
Iceland's contributory old age pension funds, and “allowance payable in respect of an industrial injury or
industrial disease” payable under the legislation of
the United Kingdom shall include all such allowances
and additions other than special hardship allowance payable under the legislation
of that Party.
(2) Where under the legislation of one Party
an increase of any of the benefits for which specific provision is made in
this Convention would be payable for a dependant if he were in the territory
of that Party, it shall be payable while he is in the territory of the other
Party.
(3) For the purposes of this Article, “old age pension” and “invalidity pension” payable under
the legislation of Iceland shall not include guaranteed
income or household supplement payable under the legislation of Iceland.
PART II PROVISIONS WHICH DETERMINE THE LEGISLATION APPLICABLE
ARTICLE 4 

(1) Subject to the following provisions of
this Article and the provisions of Articles 5 to 7 of this Convention, where a
person is gainfully occupied, his liability to be insured shall be determined
under the legislation of the Party in whose territory he is so occupied.
(2) Where a person is employed in the territory
of both Parties for the same period, his liability to be insured shall be
determined only under the legislation of the Party in whose territory he is
ordinarily resident.
(3) Where a person is self-employed in the
territory of both Parties for the same period, his liability to be insured
shall be determined under the legislation of the Party in whose territory
he is ordinarily resident.
(4) Where a person is employed in the territory
of one Party and self-employed in the territory of the other Party for the
same period, his liability to be insured shall be determined only under the
legislation of the former Party.
(5) For the purposes of the provisions of paragraphs (3) and (4)
of this Article, “liability to be insured” shall not include liability to pay a
Class 4 contribution under the legislation of the United Kingdom.
ARTICLE 5 

(1) Where a person who is insured under the
legislation of one Party and is employed by an employer in the territory of
that Party is sent by that employer to work in the territory of the other
Party, the legislation of the former Party concerning liability for contributions
shall continue to apply to him for the first fifty-two weeks of his employment
in the territory of the latter Party as if he were employed in the territory
of the former Party. Where his employment in the territory of the latter Party
continues after such period of fifty-two weeks, the legislation of the former
Party shall continue to apply to him for any further period of not more than
fifty-two weeks, provided that the competent authority of the latter Party
agrees thereto before the end of the first period of fifty-two weeks.
(2) Where a person having come from Iceland
is gainfully occupied in the United Kingdom and the legislation of Iceland
does not apply to him in accordance with paragraph
(1) of this Article or Article 4 of this Convention, the legislation
of the United Kingdom shall apply to him as if he were ordinarily resident
in the United Kingdom.
ARTICLE 6 

(1) This Convention shall not apply to persons
who are exempted from the social security law of the country in which they
are present or resident by virtue of the Vienna
Conventions on Diplomatic or Consular Relations.
(2) Subject to the provisions of paragraph (1) of this Article, where any person,
who is in the Government Service of one Party or in the service of any public
corporation of that Party, is employed in the territory of the other Party,
the legislation of the former Party concerning liability for contributions
shall apply to him as if he were employed in its territory.
(3) Subject to the provisions of paragraphs (1) and (2)
of this Article, where a person is employed in a diplomatic mission or consular
post of one Party in the territory of the other Party, or in the private service
of an official of such a mission or post, the legislation of the latter Party
concerning liability for contributions shall apply to him as if he were employed
in its territory unless within three months of the entry into force of this
Convention, or within three months of the beginning of the employment in the
territory of the latter Party, whichever is later, he chooses to be insured
under the legislation of the former Party, provided that he was so insured
immediately before the commencement of the employment at that mission or post.
ARTICLE 7 
The competent authorities of the Parties
may agree to modify the application of the provisions of Articles 4 to 6 of this Convention
in respect of particular persons or categories of persons.
PART III SPECIAL PROVISIONS
SECTION 1
SPECIAL PROVISIONS RELATING
TO THE APPLICATION OF THE LEGISLATION OF THE UNITED KINGDOM AND ICELAND
ARTICLE 8 

(1) Subject to paragraph (5) of this Article, for the purpose
of calculating entitlement, under the legislation of the United Kingdom, to
an old age pension in accordance with Article
16 of this Convention or to widow's benefit
in accordance with Article 18,
each week during which a person was domiciled in Iceland shall be treated
as if it were a week for which that person had paid a voluntary Class 3 contribution
under the legislation of the United Kingdom.
(2) Subject to the provisions of paragraph (3) of this Article, for the purpose
of calculating an earnings factor for the purpose of calculating entitlement,
under the legislation specified in Article 2(1)(a)(i) and (ii)
of this Convention, to sickness benefit in accordance with Article 9 of this Convention or to unemployment
benefit in accordance with Article 11,
a person shall be treated for each week beginning in a relevant tax year,
the whole of which week was a week of employment completed in employment in
Iceland, as having paid a Class 1 contribution as an employed person under
the legislation of the United Kingdom on earnings equivalent to two-thirds
of that year's upper earnings limit.
(3) Any additional component payable with
invalidity benefit under the legislation of the United Kingdom shall be based
solely on insurance periods completed under United Kingdom legislation, and
contributions treated as paid by virtue of paragraph
(2) of this Article shall not be taken into
account in assessing the amount of additional component.
(4) For the purpose of calculating an earnings
factor for the purpose of calculating entitlement to sickness benefit in accordance
with Article 9
under the legislation specified in Article 2(1)(a)(i) and (ii)
of this Convention, each week for which a person has been insured as a self-employed
person under the legislation of Iceland shall be treated as if it were a week
for which that person had paid a Class 2 contribution as a self-employed person
under the legislation of the United Kingdom.
(5) For the purpose of calculating a contribution
factor to establish entitlement under the legislation specified in Article 2(1)(a)(iii) of this Convention to
old age pension in accordance with Article 16 of this Convention, or to widow's benefit
in accordance with Article 18,
a person shall be treated for each week during which he was domiciled in Iceland,
being a week in a relevant year, as having paid a contribution which derives
an annual contribution factor of 0.0193 for that year.
(6) For the purpose of calculating a contribution
factor to establish entitlement to sickness benefit under the legislation
specified in Article 2(1)(a)(iii)
of this Convention in accordance with Article
9 of this Convention, a person shall be treated
for each week for which he was insured as an employed person or as a self-employed
person under the legislation of Iceland, being a week in the relevant quarter,
as having paid a contribution which derives a quarterly contribution factor
of 0.077 for that quarter.
(7) For the purpose of calculating entitlement
to any benefit in accordance with Articles 9 to 19 of this Convention under the
legislation of Iceland, insurance periods completed by a person before 6 April
1975 under the legislation specified in Article
2(1)(a)(i) and (ii)
of this Convention shall be treated as if they had been periods of domicile
completed by that person in Iceland.
(8) For the purpose of converting to an insurance
period any earnings factor achieved by a person in any tax year commencing
on or after 6 April 1975 under the legislation specified in Article 2(1)(a)(i) and (ii)
of this Convention, the competent authority of the United Kingdom shall divide
the earnings factor by that year's lower earnings limit. The result shall
be expressed as a whole number, any remaining fraction being ignored. The
figure so calculated, subject to a maximum of the number of weeks during which
the person was subject to that legislation in that year, shall be treated
as representing the number of weeks in the insurance period completed by that
person under that legislation. For the purpose of calculating entitlement
to any benefit in accordance with Articles 9 to 19 of this Convention under the
legislation of Iceland, each such week in that insurance period shall be treated
as if it had been a week during which that person had been domiciled in Iceland.
(9) For the purpose of converting to an insurance
period any contribution factor achieved by a person under the legislation
specified in Article 2(1)(a)(iii)
of this Convention, the competent authority of the United Kingdom shall:
(a) in the case of a quarterly contribution
factor, multiply the factor achieved by a person in a quarter by thirteen;
and
(b) in the case of an annual contribution
factor, multiply the factor achieved by a person in a year by fifty-two.The result shall be expressed as a whole number, any remaining
fraction being ignored. The figure so calculated, subject to a maximum of
the number of weeks during which the person was subject to Jersey's legislation
in a quarter or in a year, as the case may be, shall be treated as representing
the number of weeks in the insurance period completed by that person under
that legislation. For the purpose of calculating entitlement to any benefit
in accordance with Articles 9, 10 and 12 to 19
of this Convention under the legislation of Iceland, each such week in that
insurance period shall be treated as if it had been a week during which that
person had been domiciled in Iceland.
(10) Where it is not possible to determine
accurately the periods of time in which certain insurance periods or periods
of domicile were completed under the legislation of one Party, such periods
shall be treated as if they did not overlap with insurance periods or periods
of domicile completed under the legislation of the other Party, and shall
be taken into account to the best advantage of the beneficiary.
(11) Where, in accordance with the provisions
of this Convention, residence in the United Kingdom is treated in a claim
for benefit under the legislation of Iceland as if it had been domicile completed
in Iceland, for the purpose of any such claim any period during which a person,
and any member of his family accompanying him, was outside the United Kingdom
shall be treated as if it had been a period during which he, or any member
of his family accompanying him as the case may be, was resident in the United
Kingdom, provided that the person's absence from the United Kingdom was for
the purpose of employment for which there was liability for contributions
as an employed person for the first fifty-two weeks of that employment under
the legislation of the United Kingdom.
(12) Where a person is sent from Iceland
by his employer in that country to work abroad temporarily, each week of that
person's employment abroad shall be treated as if it had been a week during
which he was domiciled in Iceland, provided that the week was one for which
his employer was liable to pay insurance on his behalf under the legislation
of Iceland.
SECTION 2
SICKNESS BENEFIT
ARTICLE 9 

(1) Where a person is employed in the territory
of one Party and the legislation of the other Party applies to him in accordance
with any of the provisions of Articles
4 to 7 of this Convention, he shall be treated
under that legislation for the purpose of any claim for sickness benefit as
if he were in the territory of the latter Party.
(2) For the purpose of a claim for sickness
benefit under the legislation of the United Kingdom by a person in the United
Kingdom, other than a person to whom the provisions of paragraph (1) of this Article apply, weeks
during which that person was employed or self-employed in Iceland shall be
taken into account in accordance with the provisions of Article 8 of this Convention as if they had
been respectively weeks for which Class 1 or Class 2 contributions had been
paid under the legislation of the United Kingdom.
(3) Where a person was receiving sickness
benefit under the legislation of one Party immediately before leaving the
territory of that Party to go to the territory of the other Party, and he
arrives and claims sickness benefit in the territory of the latter Party within
twenty-one days of leaving the territory of the former Party, he shall be
treated, if still incapacitated for work, as if he satisfied the conditions
for entitlement to sickness benefit under the legislation of that latter Party.
(4) Subject to the provisions of Article 31(4) and (5)
of this Convention where, but for the provisions of this paragraph, a person
would be entitled to sickness benefit under the legislation of both Parties
for the same period, that benefit shall be payable only under the legislation
under which the person was last insured before entitlement arose.
(5) For the purpose of a claim for sickness
benefit under the legislation of Iceland employment in the United Kingdom
shall be taken into account as if it were, or had been, employment in Iceland.
SECTION 3
INVALIDITY PENSION
ARTICLE 10 

(1) For the purpose of a claim for invalidity
pension under the legislation of Iceland by a person who is domiciled in Iceland,
insurance periods completed by that person under the legislation of the United
Kingdom shall, in accordance with the provisions of Article 8 of this Convention, be treated as
if they had been periods during which the person had been domiciled in Iceland.
(2) In relation only to the need of a person
claiming invalidity pension under the legislation of Iceland to have been
domiciled in Iceland for at least three years immediately prior to the application
for that pension under that legislation, periods during which the person was
resident in the United Kingdom shall be treated as if they had been periods
during which the person had been domiciled in Iceland.
(3) For the purpose of a claim for invalidity
pension under the legislation of the United Kingdom by a person who is, or
immediately prior to the claim was, in receipt of sickness benefit under the
legislation of the United Kingdom, days during which that person was in receipt
of sickness benefit under the legislation of Iceland shall be treated as if
they had been days during which he had been in receipt of sickness benefit
under the legislation of the United Kingdom.
SECTION 4
UNEMPLOYMENT BENEFIT
ARTICLE 11 

(1) Where a person has, since his last arrival
in the territory of one Party, completed a contribution period under the legislation
of that Party, then for the purpose of any claim for unemployment benefit
made under the legislation of that Party, any insurance period or period of
employment completed under the legislation of the other Party shall, in accordance
with the provisions of Article 8
of this Convention, be treated as if it were an insurance period or period
of employment completed under the legislation of the former Party.Provided that:
(a) periods of insurance or periods of employment
completed under the legislation of Jersey shall not be taken into account
for the purpose of determining entitlement to unemployment benefit under the
legislation of Iceland, and
(b) periods of insurance or periods of employment
completed under the legislation of Iceland shall be taken into account for
the purpose of determining entitlement to unemployment benefit only under
the legislation specified in Article 2(1)(a)(i) and (ii)
of this Convention.
(2) Where a person claims unemployment benefit
under the legislation of one Party and account is taken of an insurance period
or period of employment completed under the legislation of the other Party
by virtue of paragraph (1)
of this Article, any period for which he received such benefit under the legislation
of the other Party shall be taken into account as if it were a period during
which he had received unemployment benefit under the legislation of the former
Party, provided that that period falls within the last 12 months before the
first day for which unemployment benefit becomes payable under the legislation
of the former Party.
(3) Subject to the provisions of paragraph (1)(a) of this Article, for the purpose
of a claim for unemployment benefit under the legislation of Iceland, each
week for which a person has paid a contribution as an employed person under
the legislation of the United Kingdom shall be treated as if it had been a
week during which that person had completed forty hours of employment in Iceland.
SECTION 5
BENEFITS FOR INDUSTRIAL INJURIES
AND DISEASES
ARTICLE 12 

(1) Where a person is employed in the territory
of one Party and the legislation of the other Party applies to him in accordance
with any of the provisions of Articles
4 to 7 of this Convention, he shall be treated
under that legislation for the purpose of any claim for benefit in respect
of an industrial accident or an industrial disease contracted during that
employment as if the accident had occurred or the disease had been contracted
in the territory of the latter Party. Where benefit would be payable in respect
of that claim if the person were in the territory of the latter Party, it
shall be payable while he is in the territory of the former Party.
(2) Where a person sustains an accident after
he leaves the territory of one Party to go in the course of his employment
to the territory of the other Party but before he arrives in the latter territory,
then, for the purpose of any claim for benefit in respect of that accident:
(a) the accident shall be treated as if it
occurred in the territory of the Party whose legislation applied to him at
the time the accident occurred, and
(b) his absence from the territory of that
Party shall be disregarded in determining whether his employment was as an
employed person under that legislation.
(3) Where because of a death resulting from
an industrial accident or an industrial disease a benefit would be payable
under the legislation of one Party in respect of a child if that child were
in the territory of that Party, that benefit shall be payable while the child
is in the territory of the other Party.
(4) For the purpose of a claim for employment
injury invalidity benefit under the legislation of Iceland, insurance periods
completed by a person under the legislation of the United Kingdom shall, in
accordance with the provisions of Article 8
of this Convention, be treated as if they had been periods during which the
person had been domiciled in Iceland.
(5) In relation only to the need for a person
claiming employment injury invalidity benefit under the legislation of Iceland
to have been domiciled in Iceland for at least three years immediately prior
to the application for that benefit under that legislation, periods during
which the person was resident in the United Kingdom shall be treated as if
they had been periods during which the person had been domiciled in Iceland.
ARTICLE 13 

(1) Where a person has sustained an industrial
injury or contracted an industrial disease, in respect of which the legislation
of one Party applies, and later sustains an industrial injury or contracts
an industrial disease in respect of which the legislation of the other Party
applies, then for the purpose of determining the degree of his disablement
under the legislation of the latter Party, account shall be taken of the former
injury or disease as if the legislation of the latter Party applied to it.
(2) Where a person contracts an industrial
disease after having been employed in the territory of only one Party in an
occupation to which, under the legislation of that Party, the disease may
be attributed, the legislation of that Party shall apply in his case, even
if the disease is first diagnosed in the territory of the other Party.
(3) Subject to the provisions of Article 31(5) of this Convention, where a person
contracts an industrial disease after having been employed in the territories
of both Parties in an occupation to which, under the legislation of both Parties,
the disease may be attributed and he would be entitled to receive benefit
in respect of that disease under the legislation of both Parties, the benefit
shall be payable only under the legislation of the Party in whose territory
he was last employed in that occupation before the disease was diagnosed.
(4) Where a person has suffered an aggravation
of an industrial disease for which benefit has been paid in accordance with
the provisions of paragraph (2)
or (3) of this Article,
the following provisions shall apply:
(a) if the person has not had further employment
in an occupation to which the disease or the aggravation may be attributed,
or has had such employment only in the territory of the Party under whose
legislation benefit has been paid, any additional benefit to which he may
become entitled as a result of such aggravation shall be payable only under
that legislation;
(b) if the person makes a claim under the
legislation of the Party in whose territory he is employed on the grounds
that he has suffered an aggravation of the disease in respect of which benefit
is payable under the legislation of the other Party while employed in the
territory of the former Party in an occupation to which, under the legislation
of that Party, the aggravation may be attributed, the competent institution
of that Party shall be liable to pay benefit only in respect of the aggravation
as determined under the legislation of that Party.
ARTICLE 14 
Where but for the provisions of this
Article, and subject to the provisions of Article
31(5) of this Convention, a person would have
been entitled to any benefit, other than a disablement benefit, payable in
respect of an industrial injury or disease under the legislation of both Parties,
that benefit shall be granted exclusively under the legislation of the territory
in which the person was last employed.
SECTION 6
OLD AGE PENSION AND WIDOW'S
BENEFIT
ARTICLE 15 

(1) Where a person is entitled to an old
age pension under the legislation of one Party, or under the legislation of
any one part of the territory of a Party, otherwise than by virtue of the
provisions of this Convention, the provisions of Article 16 of this Convention, with the exception
of paragraph (3)
of that Article, shall not apply under that legislation.
(2) For the purposes of this Article, “old age pension” shall not include a Category B retirement pension payable to a  married person or civil partner 
under the legislation of the United Kingdom by virtue of the contributions
of  his or her spouse or civil partner.
(3) For the purpose of determining entitlement
to additional component payable under the legislation of the United Kingdom,
no account shall be taken of any contribution period completed under the legislation
of Iceland; and for the purposes of this Article and Article 16 of this Convention additional component
shall be treated as a separate benefit to which the provisions of Article 16 do not apply.
ARTICLE 16 

(1) The provisions of this Article shall
apply for the purpose of determining entitlement to old age pension in respect
of a person under the legislation of one Party or the legislation of any one
part of the territory of a Party under which there is no entitlement in respect
of that person in accordance with the provisions of Article 15 of this Convention. Paragraph (3) of this Article shall also apply
when there is such an entitlement.
(2) In accordance with the provisions of Article 8 of this Convention, the insurance
authority of that Party or of that one part of the territory of a Party shall
determine:
(a) the amount of the theoretical pension
which would be payable if all the relevant periods completed by that person
under the legislation of both Parties had been completed under its own legislation;
(b) the proportion of such theoretical pension
which bears the same relation to the whole as the total of the relevant periods
completed by him under the legislation of that Party or of that part bears
to the total of all the relevant periods which he has completed under the
legislation of both Parties.The proportionate amount thus calculated shall be the rate of pension
actually payable to that person by the competent institution.For the purpose of this Article, “relevant
periods” means the periods of insurance
or periods of domicile, as the case may be, which are taken into account by
one or the other Party in accordance with the provisions of Article 8 of this Convention and paragraphs (3) and (4)
of this Article.
(3) For the purposes of the calculation of
an old age pension—
(a) where all the insurance periods completed
by any person under the legislation of—
(i) either Great Britain, Northern Ireland
or the Isle of Man amount to less than one reckonable or, as the case may
be, qualifying year, or relate only to periods before 6 April 1975 and in
aggregate amount to less than 50 weeks; or
(ii) Jersey amount to less than an annual
contribution factor of 1.00those periods shall be treated as if they had been completed under
the legislation of any other part of the territory of the United Kingdom under
which a pension is, or if such periods are taken into account would be, payable,
or, where two such pensions are or would be payable, under the legislation
of that part which, at the date on which entitlement first arose or arises,
is paying or would pay the greater amount. Where no such pension is or would
be payable by any other part of the territory of the United Kingdom and a
pension is, or if such periods are taken into account would be, payable under
the legislation of Iceland, the periods shall be converted in accordance with
the provisions of Article 8
of this Convention and shall be treated as if they had been completed under
the legislation of Iceland;
(b) where all the periods of domicile completed
by any person in Iceland amount to less than one year those periods shall
be converted to insurance periods in accordance with the provisions of Article 8 of this Convention and these shall
be treated as if they had been completed under the legislation of that part
of the territory of the United Kingdom under which a pension is, or if such
periods are taken into account would be, payable, or where such a pension
is or would be payable under the legislation of two or more parts of the territory
of the United Kingdom, under the legislation of that part which, at the date
on which entitlement first arose or arises, is paying or would pay the greater
or greatest amount.
(4) For the purpose of applying the provisions
of paragraph (2)
of this Article:
(a) the insurance authority of the United
Kingdom shall take account only of relevant periods, completed under the legislation
of either Party, which would be taken into account for the determination of
pensions under the legislation of the United Kingdom if they were completed
under that legislation, and in relation to a  person  shall where appropriate
take into account in accordance with that legislation relevant periods completed
by  his or her spouse or civil partner;
(b) no account shall be taken of any graduated
contributions paid under the legislation of the United Kingdom before 6 April
1975 and the amount of any graduated benefit payable by virtue of such contributions
shall be added to the amount of any pension payable in accordance with paragraph (2) of this Article under that legislation;
(c) no account shall be taken under the legislation
of the United Kingdom of any insurance period after the person attained pensionable
age, but any increase of benefit in respect of such a period under the legislation
of the United Kingdom shall be added to any benefit payable under the legislation
of the United Kingdom which has been calculated under paragraph (2) of this Article;
(d) for the purpose of applying the provisions
of paragraph (2)
of this Article, “pension” shall not include any increase payable in respect of a dependent
child, but any such increase shall be added to any benefit payable by virtue
of the calculation under paragraph (2)
of this Article;
(e) where a compulsory insurance period completed
under the legislation of the United Kingdom coincides with a period of domicile
in Iceland, only the compulsory insurance period shall be taken into account;
(f) where a period of domicile in Iceland
coincides with a period for which voluntary contributions have been paid under
the legislation of the United Kingdom only the period of domicile shall be
taken into account, provided that the amount of pension payable under the
legislation of the United Kingdom under the provisions of paragraph (2) of this Article shall be increased
by the amount by which the pension payable under the legislation of that Party
would have been increased if all voluntary contributions paid under that legislation
had been taken into account;
(g) where an equivalent period completed
under the legislation of the United Kingdom coincides with a period of domicile
in Iceland, account shall be taken only of the period of domicile;
(h) where a compulsory insurance period completed
under the legislation of Iceland coincides with a period of residence in the
United Kingdom, the period of residence in the United Kingdom shall be treated
as if it had been a period of domicile in Iceland;
(i) where the provisions of sub-paragraph (h) of this paragraph apply but
the period or periods of compulsory insurance coincide with a voluntary contribution
period or periods completed under the legislation of the United Kingdom, account
shall be taken only of the compulsory insurance period as provided in sub-paragraph (h) above, but the amount of
any pension payable under the legislation of the United Kingdom under the
provisions of paragraph (2)
of this Article shall be increased by the amount by which the pension payable
under the legislation of that Party would have been increased if all voluntary
contributions paid under that legislation had been taken into account.
ARTICLE 17 
Where a person does not simultaneously
satisfy the conditions for entitlement to an old age pension under the legislation
of both Parties, his entitlement under the legislation of one Party shall
be established as and when he satisfies the conditions laid down by the legislation
of that Party. The provisions of Article 16
of this Convention shall be applied where there is no entitlement under the
provisions of Article 15
of this Convention to an old age pension under the legislation of that Party
and his entitlement shall be determined afresh under those provisions when
the conditions under the legislation of the other Party are satisfied.
ARTICLE 18 

(1) Subject to the provisions of paragraph (2) and (3)
of this Article, the provisions contained in Articles 15 to 17 of this Convention
shall apply, with such modifications as the differing nature of the benefits
shall require, to widow's benefit.
(2) For the purpose of determining entitlement
to widow's benefit under the legislation of the United Kingdom in accordance
with the provisions of paragraph (2) of Article
16 of this Convention, the period of domicile
in Iceland which is to be taken into account in accordance with the provisions
of Article 8 of
this Convention shall be the period of domicile completed in Iceland by the
 widow, widower or surviving civil partner  or the period of domicile completed in Iceland by  his or her late  spouse or civil partner,
whichever is the greater.
(3) In relation only to the need of a  widow, widower or surviving civil partner 
claiming widow's benefit under the legislation of Iceland for  his or her or  his or her late
 spouse or civil partner  to have been domiciled in Iceland for at least three years immediately
prior to the application for widow's benefit under that legislation, periods
during which  he or  she or  his or her  late  spouse or civil partner  were resident in the United Kingdom shall
be treated as if they had been periods of domicile completed by  his or her or  his or her
late  spouse or civil partner, as the case may be, in Iceland.
(4) Where widow's benefit would be payable
under the legislation of one Party if a child were in the territory of that
Party, that benefit shall be payable while the child is in the territory of
the other Party.
SECTION 7
CHILD PENSION AND MOTHER'S
ALLOWANCE UNDER THE LEGISLATION OF ICELAND
ARTICLE 19 

(1) A person in receipt of child pension
and/or mother's allowance under the legislation of Iceland shall not cease
to be entitled to that benefit by virtue of the fact that the person, or the
child in respect of whom the benefit is in payment, is in the United Kingdom.
(2) Where a national of Iceland previously
domiciled in Iceland is in the United Kingdom and would be entitled to child
pension and/or mother's allowance if he or she were domiciled in Iceland,
the benefit shall be payable while that person is in the United Kingdom provided
that immediately prior to the application for the benefit he or she had been
resident in the United Kingdom and/or domiciled in Iceland for a period which
in the aggregate amounts to at least three years.
(3) In relation only to the need of a person
claiming child pension to have been domiciled in Iceland for at least three
years immediately prior to the application for that pension under the legislation
of Iceland, periods during which the person was resident in the United Kingdom
shall be treated as if they had been periods during which that person had
been domiciled in Iceland.
SECTION 8
ORPHAN'S BENEFIT UNDER THE
LEGISLATION OF THE UNITED KINGDOM
ARTICLE 20 
Where orphan's benefit would be payable
to a person under the legislation of the United Kingdom if that person or
the orphan for whom the benefit is claimed were in the United Kingdom it shall
be paid while that person, or the orphan, is in Iceland.
SECTION 9
DEATH GRANT UNDER THE LEGISLATION
OF THE UNITED KINGDOM
ARTICLE 21 
For the purpose of a claim for death
grant under the legislation of a part of the territory of the United Kingdom,
a death which has occurred in Iceland shall be treated as if it has occurred
in that part.
SECTION 10
RECOVERY OF ADVANCE PAYMENTS
AND OVERPAYMENTS OF BENEFIT
ARTICLE 22 

(1) Where a competent institution of one
Party has made a payment of any benefit to a person for any period or event
in advance of the period or event to which it relates or has paid him any
benefit for a period or event, whether by virtue of the provisions of this
Convention or otherwise, and the insurance authority of the other Party afterwards
decides that the person is entitled to benefit for that period or event under
its legislation, the competent institution of the latter Party, at the request
of the competent institution of the former Party, shall deduct from the benefit
due for that period or event under its legislation any overpayment which,
by virtue of the provisions of this Convention, results from the advance payment
or benefit paid by the competent institution of the former Party and shall
transmit this sum to the competent institution of the former Party.
(2) Where a person has received supplementary
benefit under the legislation of the United Kingdom for a period for which
that person subsequently becomes entitled to any benefit under the legislation
of Iceland, the competent institution of Iceland, at the request of and on
behalf of the competent institution of the United Kingdom, shall withhold
from the benefit due for that period the amount by which the supplementary
benefit paid exceeded what would have been paid had the benefit under the
legislation of Iceland been paid before the amount of supplementary benefit
was determined, and shall transfer the amount withheld to the competent institution
of the United Kingdom.
PART IV MISCELLANEOUS PROVISIONS
ARTICLE 23 

(1) The competent authorities of the two
Parties shall establish the administrative measures necessary for the application
of this Convention.
(2) The competent authorities of the two
Parties shall communicate to each other, as soon as possible, all information
about the measures taken by them for the application of this Convention or
about changes in their national legislation in so far as these changes affect
the application of the provisions of this Convention.
(3) The competent authorities, insurance
authorities or competent institutions of the two Parties may, for the purpose
of applying the provisions of this Convention, correspond directly with one
another, or with any person affected by this Convention, or with his legal
representative.
(4) For the purpose of facilitating the implementation
of the provisions of this Convention, liaison offices shall be established.
ARTICLE 24 

(1) The competent authorities, insurance
authorities and competent institutions of the two Parties shall assist one
another on any matter relating to the application of this Convention as if
the matter were one affecting the application of their own legislation. This
assistance shall be free of charge.
(2) Where a person who is in the territory
of one Party has claimed benefit under the legislation of the other Party
and a medical examination is necessary, the competent institution of the former
Party, at the request of the competent institution of the latter Party, shall
arrange for this examination. The cost of such examination shall be met by
the competent institution of the former Party.
ARTICLE 25 

(1) Where the legislation of one Party provides
that any certificate or other document which is submitted under the legislation
of that Party shall be exempt, wholly or partly, from any taxes, legal dues,
consular fees or administrative charges, that exemption shall apply to any
certificate or other document which is submitted under the legislation of
the other Party or under the provisions of this Convention.
(2) All statements, documents and certificates
of any kind required to be produced for the purposes of this Convention shall
be exempt from authentication by diplomatic or consular authorities.
ARTICLE 26 
No certificate, document or statement
of any kind written in an official language of either Party shall be rejected
on the ground that it is written in a foreign language.
ARTICLE 27 

(1) Any claim, notice or appeal which should,
for the purposes of the legislation of one Party, have been submitted within
a prescribed period to the insurance authority or the competent authority
of that Party, shall be treated as if it had been submitted to that insurance
authority or competent authority if it is submitted within the same period
to an insurance authority or competent authority of the other Party.
(2) Any claim for benefit submitted under
the legislation of one Party shall be deemed to be a claim for the corresponding
benefit under the legislation of the other Party in so far as this corresponding
benefit is payable in accordance with the provisions of this Convention.
(3) Any document submitted under the legislation
of Iceland may, where appropriate, be treated as a notice of retirement given
under the legislation of the United Kingdom.
(4) In any case to which the provisions of paragraph (1), (2)
or (3) of this Article apply,
the authority to which the claim, notice, appeal or document has been submitted
shall transmit it without delay to the competent authority or insurance authority
of the other Party.
ARTICLE 28 
Payment of any benefit by the competent
institution of a Party in accordance with the provisions of this Convention
may be made in the currency of that Party and any such payment shall constitute
a full discharge of the obligation in respect of which payment has been made.
ARTICLE 29 
A person shall not be entitled by virtue
of this Convention to sickness benefit, invalidity pension or maternity allowance
under the legislation of one Party for any period during which he is entitled
to benefit under the legislation of the other Party in respect of incapacity
for work which results from an industrial accident or disease.
ARTICLE 30 

(1) Any dispute between the competent authorities
of the two Parties about the interpretation or application of this Convention
shall be resolved through agreement between the competent authorities of each
Party.
(2) If any such dispute cannot be resolved
in this manner, it shall be submitted, at the request of either Party, to
an arbitration tribunal which shall be composed in the following manner:
(a) each Party shall appoint an arbitrator
within one month from receipt of the demand for arbitration. The two arbitrators
shall appoint a third arbitrator, who shall not be a national of either Party,
within two months from the date on which the Party which was the last to appoint
its arbitrator has notified the other Party of the appointment;
(b) if within the prescribed period either
Party should fail to appoint an arbitrator, the other Party may request the
President of the International Court of Justice or, in the event of his having
the nationality of one of the Parties, the Vice-President or next senior judge
of that Court not having the nationality of either Party, to make the appointment.
A similar procedure shall be adopted at the request of either Party if the
two arbitrators cannot agree on the appointment of the third arbitrator.
(3) The decision of the arbitration tribunal
shall be by majority vote. Its decision shall be binding on both Parties.
The costs of the arbitration tribunal shall be borne equally by the two Parties.
The arbitration tribunal shall determine its own rules of procedure.
PART V TRANSITIONAL AND FINAL PROVISIONS
ARTICLE 31 

(1) Benefit, other than lump sum payments,
shall be payable in accordance with the provisions of this Convention in respect
of events which happened before the date of its entry into force, except that
an accident which occurred or a disease which developed before that date shall
not, solely by virtue of this Convention, be treated as an industrial accident
or disease if it would not have been so treated under any legislation or Convention
having effect at the time of its occurrence or development. For the purpose
of determining claims in accordance with the provisions of this Convention,
account shall be taken of insurance periods and periods of residence, employment
or presence, completed before the date of its entry into force.
(2) Paragraph
(1) of this Article shall not confer any right
to receive payment of benefit for any period before the date of the entry
into force of this Convention.
(3) For the purpose of applying the first
sentence of paragraph (1)
of this Article:
(a) any right to benefit may, at the request
of the person concerned, be determined afresh in accordance with the provisions
of this Convention from the date of entry into force of this Convention, provided
that the request has been made within two years after that date;
(b) where the request for the benefit to
be determined afresh is made more than two years after the date of entry into
force of this Convention payment shall be made from the date determined under
the legislation concerned.
(4) No provision of this Convention shall
diminish any rights which a person had acquired under the legislation of either
Party before the date of entry into force of this Convention.
(5) Where a person is (or if he claimed would
be) entitled otherwise than by virtue of the provisions of this Convention
to receive benefit for the same period under the legislation of both Parties,
no provision of this Convention shall diminish his right to receive that benefit.
ARTICLE 32 
This Convention shall be ratified and
the instruments of ratification shall be exchanged in London as soon as possible.
The Convention shall enter into force on the first day of the second month
following the month in which the instruments of ratification are exchanged.
ARTICLE 33 
This Convention shall remain in force
for an indefinite period. Either Party may denounce it at any time by giving
six months' notice in writing to the other Party.
ARTICLE 34 
In the event of the termination of this
Convention, any right to benefit acquired by a person in accordance with its
provisions shall be maintained and negotiations shall take place for the settlement
of any other rights then in course of acquisition by virtue of its provisions.
In witness whereof the undersigned, duly authorised by their respective
Governments, have signed this Convention.
Done in duplicate
at Reykjavik this twenty-fifth day of August 1983, in the English and Icelandic
languages, both texts being equally authoritative.
