Employment law in Israel
Employment law in Israel is primarily governed by a combination of statutory laws, regulations, and court decisions that aim to protect employees' rights and regulate the relationship between employers and employees. The legal framework emphasizes labor rights, employee protection, and fair working conditions, covering areas such as working hours, wages, termination, leave, and social security. Israel's labor laws are generally favorable toward workers, with strong protections against discrimination and wrongful termination.
Here is an overview of key aspects of employment law in Israel:
1. Employment Contracts
Written Contracts: While Israel's labor law does not require all employment contracts to be in writing, it is highly recommended to have one to avoid misunderstandings and disputes. Written contracts should outline the key terms of employment, such as job duties, salary, work hours, and other important conditions.
Types of Employment Contracts:
Permanent/Indefinite-Term Contracts: These contracts do not specify an end date and represent a long-term employment relationship.
Fixed-Term Contracts: These contracts are for a specified duration or for a particular project. Fixed-term employees are entitled to the same rights as permanent employees, except for job security protections if the contract ends on the agreed date.
2. Working Hours
Standard Working Hours: According to the Hours of Work and Rest Law, 1951, the standard workweek in Israel is 42 hours spread over 5 or 6 days, with a maximum of 8.6 hours per day.
Overtime: Employees who work beyond the standard 42-hour workweek are entitled to overtime pay. Overtime pay is generally calculated at 125% of the regular wage for the first two hours of overtime and 150% for subsequent hours.
Rest Periods: Workers are entitled to a 30-minute break during shifts of 6 hours or longer. Employees are also entitled to weekly rest on Saturdays (or a different day for those working on Saturdays) and must not work more than 6 consecutive days without a day off.
Shabbat: For Jewish employees, working on Shabbat (the Jewish Sabbath, from Friday evening to Saturday evening) is generally prohibited, but exceptions are made for specific industries such as healthcare, hospitality, and retail. Non-Jewish employees may be required to work on Shabbat depending on the sector and company policy.
3. Minimum Wage
Minimum Wage Law, 1987: Israel has a national minimum wage that applies to most employees. As of 2025, the minimum monthly wage is ILS 5,300 (approx. $1,500 USD) for full-time workers.
Minimum Hourly Wage: For workers paid by the hour, the minimum wage is calculated based on the hourly equivalent of the national minimum salary.
Wage Payment: Employers are required to pay employees their wages on a monthly basis, and salary payments must be made on the last working day of the month or on an agreed-upon date.
4. Leave and Holidays
Annual Paid Leave: Employees in Israel are entitled to a minimum of 12 days of paid vacation per year after one year of employment. The leave entitlement increases with the length of service.
Sick Leave: Employees are entitled to sick leave of up to 90 days per year. Employees must provide a medical certificate to qualify for paid sick leave, and the employer usually pays the full salary for the first 2 days, and partial pay (around 50-75%) thereafter.
Public Holidays: Israel has 9 official public holidays, including Passover, Shavuot, Rosh Hashanah, Yom Kippur, and Independence Day. If an employee is required to work on a public holiday, they are generally entitled to additional pay (often 150% of regular pay) or a compensatory day off.
Maternity Leave: Female employees are entitled to 15 weeks of paid maternity leave, with the government providing compensation for the leave. This includes 7 weeks before and 8 weeks after childbirth. The first 14 weeks are paid by the National Insurance Institute (NII), and employees may receive an additional period of unpaid leave if desired.
Paternity Leave: Male employees are entitled to 7 days of paid paternity leave within the first few weeks after the birth of their child. This is in addition to the right to take unpaid leave for up to 30 days.
5. Termination and Dismissal
Notice Period: Both employers and employees are required to provide a notice period before termination. The standard notice period is:
1 day to 3 months of service: 1 day of notice for each month of employment (up to 3 months)
3 to 6 months of service: 6 days' notice
More than 6 months of service: 30 days' notice
Termination for Just Cause: Employers may terminate an employee without notice or severance pay for serious misconduct, such as theft, gross negligence, or violence in the workplace. The employer must provide evidence of the misconduct and allow the employee to defend themselves.
Severance Pay: Employees who are dismissed without cause (or who resign due to constructive dismissal) are entitled to severance pay, calculated as 1 month of salary for each year of service. Employees who voluntarily resign are generally not entitled to severance pay, unless they have been employed for over a year and their resignation is due to specific reasons such as harassment or unsafe working conditions.
Redundancy: In cases of redundancy or closure of a business, employees are generally entitled to severance pay and may also be entitled to compensation if they are laid off under unfair conditions.
6. Employee Rights and Protection
Non-Discrimination: Israeli labor law prohibits discrimination on the basis of gender, age, race, religion, national origin, disability, or sexual orientation. This includes protection against discrimination in hiring, promotion, compensation, and termination.
Equal Pay for Equal Work: The Equal Pay Law, 1996 mandates that male and female employees performing the same work or work of equal value must receive the same pay.
Workplace Harassment: Israel has laws addressing sexual harassment in the workplace, and employers are required to take action against harassment. Employees are entitled to file complaints if they experience harassment or mistreatment.
Health and Safety: The Occupational Safety and Health Law ensures that workplaces meet health and safety standards. Employers must provide a safe working environment, train employees in safety procedures, and provide necessary equipment to prevent accidents.
7. Social Security and Benefits
National Insurance Institute (NII): Israeli employees and employers contribute to the National Insurance Institute, which provides social security benefits, including pensions, unemployment benefits, health insurance, and maternity leave benefits.
Pension Plans: Employers must contribute to pension plans for their employees, as stipulated by law. In most cases, employers contribute 6.5% of the employee's salary, while employees contribute 6% to the pension fund. Employers also contribute to other funds such as severance pay and disability insurance.
Unemployment Benefits: Employees who lose their job are entitled to unemployment benefits from the National Insurance Institute, provided they have contributed to the system for a minimum period. The benefits are calculated based on the employee's past earnings.
8. Trade Unions and Collective Bargaining
Trade Unions: Employees in Israel have the right to join trade unions, and these unions play a significant role in protecting workers' rights and negotiating collective agreements on wages, benefits, and working conditions.
Collective Bargaining: Many industries in Israel operate under collective bargaining agreements negotiated between unions and employer associations. These agreements typically cover wages, benefits, working hours, and other workplace conditions.
9. Foreign Workers
Work Permits: Foreign workers must obtain a work visa to be employed in Israel. Certain skilled workers, including those in the high-tech sector, are allowed to work with specific permits. The work permit is usually tied to a particular employer and job.
Rights of Foreign Workers: Foreign employees are entitled to the same rights and protections as Israeli workers, including the right to wages, benefits, safe working conditions, and protection against discrimination.
Conclusion
Employment law in Israel provides robust protection for employees, ensuring fair working conditions, wages, and rights in areas such as maternity leave, termination, and health and safety. The law encourages equality and non-discrimination in the workplace, and it also provides mechanisms for resolving disputes and addressing grievances. Employers must adhere to various regulations related to working hours, pay, and benefits, while employees are protected from unfair treatment, harassment, and wrongful termination. The legal framework has been designed to create a balanced and fair environment for both employers and workers.
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