Labor Law – An Important Update for Employers

There have been a few recent updates to statutory provisions and administrative procedures regarding employees and employers during the COVID-19 outbreak.

Here are the main points:

1. Sick Pay for Employees in Quarantine

The Supreme Court repealed an order from February 4, 2020, which provided a sweeping sick certificate or doctor’s note to any employee in quarantine for fear of exposure to COVID-19.

According to the decision, the Sick Pay Law does not authorize the Ministry of Health to issue a sweeping sick certificate that requires employers to provide employees paid sick leave.

As such, from September 30, 2020, there is no requirement for employers to issue payment to employees in quarantine who are not, themselves, sick. Employees infected with COVID-19 who present an appropriate medical certificate will still be eligible for paid sick leave. This is similar to any other absence due to illness.

1. Employment Incentive Grants for Employers

Following legislation of the Employment Promotion Grant Law last month, please note employers are now eligible for monthly grants meant to incentivize hiring new or previous employees because of the COVID-19 outbreak. You can find the main points regarding the law in our previous update here.

In the meantime, the Israeli Employment Service’s website has been updated, and you may now submit grant requests online.

Employers must submit requests no later than 60 days following the end of the month for which a grant is requested.

1. Unemployment Benefits

Employees furloughed as a result of COVID-19 continue to be eligible for unemployment benefits.

According to announcements from the National Insurance Institute, eligibility for unemployment benefits has been extended to June 30, 2021, for individuals who fall into one of the following categories:

• • • Individuals whose eligibility for unemployment ended on or after March 1, 2020;
    • Those whose eligibility for unemployment ended before March 1, 2020, and who stopped working between March 1, 2020, and June 30, 2021; or
    • Individuals whose eligibility for unemployment ended in January or February 2020.

Extension of unemployment eligibility and continued payment of benefits will be automatic for those who received unemployment benefits during the COVID-19 outbreak. This begins from March 1, 2020, and for any point thereafter. There is no need to submit a new request for unemployment eligibility or benefits, even if the unemployment year has ended. 

For those receiving unemployment benefits, please note no recalculation will take place throughout the entire period (through June 30, 2021). This applies even if the individual begins a new job at a lower pay scale and is then subsequently dismissed or furloughed.

Additionally, from August 1, 2020, furloughed employees may be eligible for unemployment benefits if the furlough is for a period of at least 14 days.

4. Worker’s Compensation

An employee infected with COVID-19 as a result of workplace transmission can be recognized as having a workplace illness and receive payment for the days in which he or she did not work as a result. This is subject to submission of a claim for worker’s compensation to the National Insurance Institute. If the employee remained with any degree of disability as a result of the disease, he/ she may be eligible for disability payments.

In addition, employees required to quarantine because of exposure to an infected individual, but who are not sick themselves, are not considered as having sustained a workplace illness.

Given the rapid changes, we strongly encourage employers to reach out to our Employment Department with any issues regarding their specific employment-related situations.