Israel Labor Law and Employment Policy Overview

Employment Law Overview

• Main Laws and Regulations:
  • Israeli Labor Law
  • Collective Bargaining Agreements
  • Labor Court Precedents
• Legal Characteristics:
  • Aims to protect employee rights and promote workplace fairness
  • Emphasizes social dialogue and collective bargaining
  • Sets standards for minimum wage, working hours, vacations, severance pay, etc.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include essential terms such as job description, salary, working hours, vacations
  • May include additional clauses, such as confidentiality agreements, non-compete clauses
• Language and Currency:
  • Contracts must be in Hebrew or Arabic
  • Currency is the Israeli New Shekel (ILS)

Working Hours Regulations

• Standard Working Hours:
  • 42 hours per week
• Rest Days and Breaks:
  • At least 48 hours of rest per week
  • At least 45 minutes of break time per day

Vacation Policy

• Annual Leave:
  • 12-15 days per year, increasing with seniority
• Public Holidays:
  • 9 statutory public holidays
• Special Leaves:
  • Sick leave: 1.5 days per month, up to 90 days
  • Maternity leave: 26 weeks
  • Paternity leave: 5 days
  • Parental leave: 8 days for fathers

Employee Severance and Termination of Contract

• Notice Period:
  • 0-6 months of employment: 1 day's notice
  • 6+ months of employment: 30 days' notice
• Severance Pay:
  • 1 month's salary for each year of employment
• Protection Against Unfair Dismissal:
  • Employees have the right to appeal against unfair dismissal

Taxation

• Personal Income Tax:

  • Salary Range (ILS)	Tax Rate
    0 - 6,790	10%
    6790 - 9730	14%
    9,730 - 15,620	20%
    15,620 - 21,710	31%
    21,710 - 45,180	35%
    45,180 - 58,190	47%
    58,190 and above	50%

• Social Security Contributions:

  • Employee: 3.55% - 3.55%
  • Employer: 18.38% - 21.78%

Health Insurance

• Insurance Policy:
  • Employees are required to participate in the National Health Insurance Scheme
• Insurance Coverage:
  • Basic medical services, preventive care, hospitalization

Compensation and Benefits

• Minimum Wage:
  • ILS 5,571.75 per month
• Compensation Structure:
  • Monthly salary
  • Benefits such as bonuses, allowances

Work Permits and Visas

• Permit Requirements:
  • Foreign employees require a work permit
• Application Process:
  • Apply through the employer to the Ministry of Interior

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Israel
• Common Clauses:
  • Confidentiality agreements: Protect the employer's confidential information
  • Non-compete clauses: Restrict employees from engaging in similar work after leaving

Training and Development

• Legal Requirements:
  • Employers must provide safety training and opportunities for skill enhancement
• Government Support:
  • Government provides training subsidies and programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on factors such as race, religion, gender
• Enforcement:
  • Equal Employment Opportunity Commission enforces anti-discrimination laws

Remote Work Policy

• Legal Framework:
  • Remote work is legally recognized in Israel
• Tax and Insurance Implications:
  • Remote work may affect tax and social security contributions

Authoritative Website Addresses

• Israeli Ministry of Labor and Social Affairs: https://www.gov.il/en/departments/ministry_of_labor_social_affairs