Fyrirtækið sem þau vinna hjá er stórt.

Questions & Answers about Fyrirtækið sem þau vinna hjá er stórt.

Why is hjá placed after the verb here?
This is a great example of preposition stranding. When a relative clause with sem (that/which) involves a preposition, the preposition goes at the end of the clause, right after the verb. So 'the company that they work for' becomes fyrirtækið sem þau vinna hjá.
The English translation says 'work for', but doesn't hjá usually mean 'at' or 'by'?
Yes, hjá often means 'by' or 'at', but in Icelandic, you use vinna hjá when talking about the company or person you are employed by. You wouldn't use fyrir (for) in this specific context.
Why is the pronoun þau used for 'they' instead of þeir or þær?
Þau is the neuter plural form of 'they'. In Icelandic, you use þau when referring to a mixed group of people, or to a group of neuter nouns. If the group of workers were all male, you would use þeir, and if all female, þær.
Why does the adjective stórt end in -t?
Adjectives must match the gender of the noun they describe. Because fyrirtæki (company) is a neuter noun, the adjective stór (big/large) takes the neuter ending -t to become stórt.

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