Israel

Israel is a country in the Middle East region and bordered by Lebanon, Syria, Jordan, Egypt, the West Bank, and the Gaza Strip. The country’s government is located in the proclaimed capital of Jerusalem (although both Israel and Palestine claim Jerusalem as their capital). Most countries maintain their embassies in Tel Aviv, and the city is considered the economic and technological center of the country. There are many holy sites within its borders, so Israel regularly receives visitors of the Abrahamic religions coming to see its rich history.

The minimum wage in Israel is ILS 5,400 per month, and the standard workweek is Sunday to Thursday for 42 hours per week at 7-9 hours per day. Employees should receive at least 48 hours of rest per week (usually Friday and Saturday). It is illegal to ask an employee to work more than 12 hours a day or 16 hours of overtime per week.

Overtime is regulated by contracts/collective agreements, and is agreed upon by the employee and the employer before starting any overtime hours. Overtime is paid at between 125%-150% of the salary.

Parental Leave

Pregnant employees are entitled to 26 weeks of paid maternity leave as long as they have worked at their company for 1 year. The employee can take up to 7 weeks before the due date and the remainder after the birth. The leave is paid for by social security for about 15 weeks of fully paid leave and 11 weeks of unpaid leave.

Spouses are also entitled to take the first 5 days after their child’s birth as paid leave, but the leave comes from their accrued annual vacation and their accrued sick leave.

Sick Leave

Employees in Israel can take sick leave which is accrued at a rate of 1.5 days per month, adding up to a maximum of 90 days total. The payment varies based on the duration of the leave:

• 1st day of sick leave = unpaid
• 2nd and 3rd days of sick leave = 50% paid
• 4th day onwards = 100% paid

Paid Leave

There are 9 national holidays in Israel, and employees are entitled to at least 16 days of paid time off each year which adds up to more the longer that they work at their company (up to 28 days at 8 years). Employees can also receive leave for bereavement and military duty.

Process

Employers are allowed to exercise their right to terminate an employee’s employment in good faith, in compliance with applicable law (such as employment contracts and collective bargaining agreements).

To start a termination process, the employer has to provide the employee a hearing invitation with the reasons for the intended termination. The hearing is conducted by the employee’s manager, and the employee gets an opportunity to express their viewpoint regarding the intention to terminate. After the hearing, the employer considers the arguments seriously and in good faith. The decision is then communicated in writing, preferable in person and within 48 hours of the hearing.

Notice Period

Employers must provide written notice when ending an employment contract. The employer can choose to give a payment in lieu of notice, which is equal to the salary payment the employee would have received if they worked throughout the notice period. The notice period is determined by the employee’s length of time at the company:

• 0-6 months = 1 day of notice per month of employment
• 6-12 months = 2.5 days of notice per month of employment
• 1+ years = 30 days of notice

Severance Pay

Employees who have worked at least 1 year at their company and are being dismissed are entitled to severance pay. The payment is calculated as 1 month’s salary for each year of employment. This payment comes from the severance fund which the employer pays into at 8.33% of the salary per month, and the accrued amount is released to the employee upon termination.

While a 13th-month salary payment is not legally mandated, employees are entitled to a “Recreation Payment” after one year at their companies. The bonus is usually paid between July and September, and the amount depends on the number of years of employment.