Employment Rights

Employment Rights and Labour Laws in

Israel

Overview

Israeli labor law is a comprehensive system combining statutory legislation, collective agreements, extension orders, case law, and some remnants of Ottoman and British Mandatory law. The system strongly protects workers' rights and is enforced by the Ministry of Labor, Social Affairs and Social Services.

Key Legislative Framework

Major Laws:

ï Hours of Work and Rest Law, 1951

ï Annual Leave Law, 1951

ï Employment of Women Law, 1954

ï Apprenticeship Law, 1953

ï Employment Service Law, 1959

ï Severance Pay Law, 1963

ï Minimum Wage Law, 1987

ï Equal Pay for Male and Female Employees Law, 1996

ï Prevention of Sexual Harassment Law, 1998

ï Employee Notice Prior to Dismissal and Resignation Law, 2001

ï Equal Employment Opportunity Law, 1988

ï Employment by Manpower Contractors Law, 1996

Employment Contract

Formation:

ï Employment contracts can be oral or written, but written contracts are required for certain terms

ï Must specify: job description, salary, start date, workplace location

ï Personal employment contract cannot provide conditions inferior to those required by law or collective agreements

Types of Employment:

ï **Permanent employees **- full employment rights

ï **Temporary employees **- limited to 9 months (15 months for replacements)

ï **Part-time employees **- proportional rights

ï **Freelancers/Independent contractors **- different legal status

Working Hours and Overtime

Standard Hours:

ï Maximum 43 hours per week (8 hours per day, 7 hours on eve of Sabbath/holidays)

ï After 8 consecutive hours, employees entitled to half-hour break

ï Six-day work week is standard

Overtime:

ï First 2 hours: 125% of regular wage

ï Additional hours: 150% of regular wage

ï Sabbath/rest day work: 150% (or 200% if worked full week)

Night Work:

ï Between 11 PM and 6 AM

ï Additional 25% supplement required

Rest Periods and Leave

Weekly Rest:

ï Minimum 36 consecutive hours per week

ï For Jews: Friday evening through Saturday

ï For Muslims: Friday

ï For Christians: Sunday

ï Druze and Circassians: Saturday

Annual Leave:

ï Year 1: 10 working days

ï Year 2-4: 12 working days

ï Year 5: 14 working days

ï Each additional year: +1 day (maximum 28 days)

ï Must be taken within 18 months of accrual

ï Unused leave paid upon termination

Sick Leave:

ï Accumulates at 1.5 days per month

ï First day unpaid

ï Days 2-3: 50% of salary

ï Day 4 onward: 100% of salary

ï Requires medical certificate after first day

ï Maximum accumulation: 90 days

Public Holidays:

ï 9 Jewish holidays (paid, non-working)

ï Muslim, Christian, Druze employees entitled to their respective holidays

Additional Leave Types:

ï Maternity leave: 26 weeks (15 weeks paid)

ï Paternity leave: 6 days

ï Parental leave: Additional unpaid leave options

ï Reserve duty: Paid military reserve service

ï Wedding leave: Available

ï Bereavement leave: 7 days for immediate family

ï Study leave: Under certain conditions

Wages and Compensation

Minimum Wage:

ï Set periodically by law (approximately 5,880 ILS gross per month as of recent updates, but verify current rate)

ï Updated based on average wage increases

Salary Payment:

ï Must be paid at least monthly

ï By 9th of following month

ï Payment via bank transfer or check

ï Salary slip required showing all deductions

Components Typically Included:

ï Base salary

ï Travel allowance (often tax-exempt up to limits)

ï Meal vouchers

ï Bonus/13th month salary

ï Company car (for relevant positions)

ï Mobile phone allowance

ï Continuing education fund contributions

Pension/Provident Fund:

ï Employer contribution: minimum 6.5% of salary

ï Employee contribution: minimum 6% of salary

ï Severance fund component: 6%

ï Total employer obligation: approximately 12.5-14% including insurance

National Insurance (Bituach Leumi):

ï Employer: approximately 3.55-7.6% depending on salary

ï Employee: approximately 0.4-12% depending on salary

ï Covers: unemployment, maternity, disability, old age, survivors

Advanced Study Fund (Kranot Hishtalmut):

ï Not mandatory but common

ï Employer: 7.5% of salary

ï Employee: 2.5% of salary

ï Tax-advantaged savings

Severance Pay (Pitzuim)

Entitlement:

ï One month's salary for each year worked

ï Based on last salary or average of last 3/6/12 months (whichever higher)

ï Applies to dismissals, retirement, or resignation after certain periods

ï Resignation before one year: no entitlement

Exemptions:

ï Employee fired for severe misconduct

ï Employee quits without good reason (within first year)

Alternatives:

ï Many employers use pension funds with severance component (Section 14)

ï Employee receives monthly contributions instead of lump sum at end

Notice Periods

Employer Dismissal:

ï During probation: 1 day's notice or pay

ï First 6 months: 1 day per month worked

ï 6 months - 1 year: 2.5 days per month

ï 1 year - 2 years: 1 month

ï 2+ years: 1 month

Employee Resignation:

ï Same periods but slightly different calculations

ï Can be waived by mutual agreement

Protection Against Dismissal

Prohibited Dismissals:

ï Pregnancy/maternity leave period (up to 60 days after return)

ï Reserve military service (up to 30 days after return)

ï Absence due to IVF treatments

ï Union activities

ï Filing complaints with authorities

ï Discrimination (race, religion, nationality, sex, age, personal status, etc.)

Collective Dismissals:

ï Special procedures required for dismissing groups of employees

ï Prior notice to employees, workers' committee, and Ministry of Labor

Discrimination and Equal Opportunity

Protected Characteristics:

ï Sex, gender identity

ï Sexual orientation

ï Personal status (marital, parental)

ï Age

ï Race, religion, nationality

ï Country of origin

ï Political views

ï Reserve military service

ï Pregnancy/IVF treatment

Equal Pay:

ï Men and women must receive equal pay for equal work

ï Burden of proof on employer if discrimination alleged

Sexual Harassment

Prohibited Conduct:

ï Blackmail for sexual purposes

ï Indecent acts without consent

ï Repeated sexual propositions despite refusal

ï Repeated sexual remarks about person's body/sexuality

ï Degrading/humiliating sexual references

Employer Obligations:

ï Appoint supervisor for complaints

ï Display policy prominently

ï Investigate complaints promptly

ï Take preventive measures

Special Protections

Pregnant Women and New Mothers:

ï Cannot be dismissed during pregnancy + 60 days after return (150 days total protection)

ï Entitled to full maternity rights even during probation

ï Right to reduced hours or flexible arrangements (under conditions)

ï Entitled to breaks for nursing

Young Workers (under 18):

ï Maximum 8 hours/day, 40 hours/week

ï No night work

ï Special rest requirements

ï No hazardous work

Foreign Workers:

ï Generally entitled to same rights as Israeli workers

ï Special visa and work permit requirements

ï Some limitations based on permit type

Workers' Committees and Trade Unions

Right to Organize:

ï Employees have right to join and form unions

ï Protected against dismissal for union activity

Workers' Committee (Va'ad Ovdim):

ï Elected body representing employees

ï Required in workplaces with 20+ employees

ï Rights include: consultation on dismissals, access to workplace, negotiation rights

Collective Agreements:

ï Negotiate wages and conditions

ï Can be extended to entire sectors via "extension orders"

ï Often provide better conditions than statutory minimum

Workplace Safety and Health

General Duty of Care:

ï Employer must provide safe workplace

ï Regular safety training required

ï Safety committee required in larger workplaces

Work Safety Ordinance:

ï Requires safety equipment, proper machinery maintenance

ï Special requirements for hazardous work

ï Regular inspections by Ministry of Labor

Termination and Dismissal

Grounds for Dismissal:

ï Economic reasons

ï Unsuitability for position

ï Misconduct (severity determines if severance pay due)

ï Position elimination

Procedural Requirements:

ï Prior warning (except severe misconduct)

ï Hearing before dismissal (for permanent employees)

ï Written notice

ï Notice period payment

ï Severance pay (unless forfeited)

Constructive Dismissal:

ï Significant unilateral change in conditions may be treated as dismissal

ï Employee entitled to resign and claim severance

Enforcement

Ministry of Labor:

ï Labor inspectors can enter workplaces

ï Can issue improvement orders

ï Criminal penalties for violations

Labor Courts:

ï Specialized court system for employment disputes

ï Regional and National Labor Courts

ï Generally employee-friendly jurisdiction

ï Lawyers not required (though recommended)

Statute of Limitations:

ï Most claims: 7 years

ï Severance pay: 7 years from termination

ï Discrimination: 12 months (extendable)

Manpower/Staffing Companies

Special Regulations:

ï Employee Rights Law applies

ï Employee considered employee of client company after 9 months

ï Restrictions on successive temporary contracts

ï Joint liability of contractor and client company

Recent Trends and Reforms

Gig Economy:

ï Growing litigation over classification (employee vs. contractor)

ï Courts increasingly finding gig workers to be employees

Remote Work:

ï COVID-19 led to new guidelines and practices

ï Rights to remote work being debated

Wage Theft Prevention:

ï Increased enforcement

ï Criminal penalties enhanced

**Important Note: **Specific figures (minimum wage, contribution percentages) can change periodically. Always verify current rates with the Ministry of Labor or a qualified labor law attorney. This overview covers the general framework but individual situations may require specific legal advice.

Would you like me to elaborate on any specific aspect of Israeli labor law?

Updated on: 01/02/2026

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