This law transfers responsibility for issuing work permits for foreigners from the Directorate of Labour to the Directorate of Immigration to streamline procedures. International students residing in Iceland are now permitted to work up to 60% without a separate work permit while studying, eliminating the previous requirement for a special permit for students. Certain labor market testing requirements are removed or made more flexible, allowing the Directorate of Immigration to assess when such checks are unnecessary. The law affects foreigners applying for residence and work permits, students wishing to work alongside their studies, and employers hiring foreign workers.