Compensation to employers in respect of wages paid to employees during the IDF Operation “Guardian of the Walls”

On July 21, 2022, more than a year and a half after the conclusion of the IDF Operation “Guardian of the Walls,” the Minister of Economy signed an Extension Order regulating payments to employees in respect of days of absence from work during the IDF operation.

The Extension Order states that particular employees, whose place of residence or workplace are within 80 kilometers of the Gaza Strip, and who did not report to work during the days of the fighting (from May 10 to 21, 2021) are entitled to their wages for these days of absence. On the other hand, employers are entitled to compensation in respect of the payment of wages to those particular employees, in conformity with the Property Tax and Compensation Fund Regulations.

The Order expands provisions of the collective bargaining agreement signed in December 2021 between the Histadrut New General Federation of Labor and the employer organizations regarding compensation to public-sector employers for employees who were absent from work during the IDF Operation.

De facto, the expansion of the collective bargaining agreement in the Extension Order also applies to private-sector employers. From now on, private employers will be able to receive compensation from the Israel Tax Authority for wage payments paid to employees who were absent from work during the IDF Operation in compliance with Homefront Command directives (in addition to the payment of compensation for other indirect damages).

The wage that must be paid to employees is at the daily rate that would have been paid had the employee worked normally (subject to the maximum wage as defined in the Order) and, against such payment, employers will receive compensation from the State according to that prescribed in the Property Tax and Compensation Fund Regulations.

Additionally, the Extension Order also addresses, inter alia, the rights of parents of children with disabilities. Any employee who is a parent or guardian of a person with disabilities will be entitled to compensation if he was absent from work for the purpose of caring for his disabled child, even if he is above the age of 14.

Employers are obligated to pay employees their wages in conformity with the provisions of the Extension Order, regardless of whether or not the employer filed a claim pursuant to the regulations.

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