Compensation to Employers for Evacuated Employees’ Wages

On October 18, 2023, considering the ongoing combat and threats, the Israeli government decided to close regions surrounding the Gaza Strip to the civilian population.

Pursuant to the provisions of the Property Tax and Compensation Fund Law, employers may claim compensation for wages paid to employees unable to report for work due to evacuation from their permanent places of residence in one of the communities listed in government decisions (e.g., Nahal Oz, Erez, Nir Am, Mefalsim, Beit Hillel, Ramot Naftali, Fassuta, etc.).

Accordingly, the Israel Tax Authority has publicized an announcement to employers regarding the establishment of a designated system, set to open in the near future, enabling employers to file compensation claims for wages paid to employees absent from the workplace due to government decisions, such as evacuation to a location too far from the workplace.

Every employer, regardless of the location of its business, may file a compensation claim for wages paid to an employee absent from the workplace due to evacuation. For example, an employer located in Tel Aviv is entitled to compensation for the wages paid to an employee who was evacuated from Nahal Oz and is unable to come to work. Of course, the payment of compensation is contingent upon wages actually being paid to such employee.

A compensation claim is limited to two and a half times the average wage in the economy (i.e., up to ILS 23,618).

Employers may file compensation claims through a designated system the ITA plans to open in the near future.

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Barnea Jaffa Lande’s Employment Department is at your service to answer any questions about business conduct during the war and any other questions.

Adv. Lior Girshevitz is an associate in the department.