Swords of Iron War: Payment of Wages to Absent Employees

The collective bargaining agreement signed in February 2024, which defines the conditions for paying wages to employees who were unable to report to work due to the Swords of Iron War, was made contingent upon the issuance of an extension order applying the conditions to the entire economy. In early March, authorities promulgated this order, and it consequently brought the agreement into effect.

Q& A

Must employers pay wages to employees who were unable to report to work from October 7–October 31, 2023?

Yes. Employers must now pay wages to employees who were fully or partially absent from work during the period October 7–October 31, 2023, as a result of the fighting. Additionally, this obligation now applies to all employers in Israel. 

In what instances will employers pay wages to employees who were unable to report to work?

Any employee who was absent from work during the aforementioned qualifying period and who meets one of the following criteria will have the right to wages from their employer for days of absence during the qualifying period:

1. The employee lives in a community evacuated by government decision. The employee was unable to report to work due to the security situation during the qualifying period.
2. ŸThe employee works in an educational institution located in a designated region and was unable to report to work on one or more days during the qualifying period due to an order that closed the educational institution, or the employee was absent from work due to the need to supervise a child under the age of 14 who was at home due to an order that closed the educational institution where the child studies or resides. If the employee resides in a designated region, the employer must pay their wages according to the criteria specified in the extension order.
3. ŸThe employee was unable to report to work due to a Home Front Command directive that prohibited gatherings.
4. The employee is a person with a disability (whose employer was aware of the disability or the employee submitted a medical certificate to his employer attesting to the disability) whose place of residence or workplace is located in a designated region and the disability prevented the employee from reaching the workplace or staying in it because of a Home Front Command directive prohibiting him from working there.
5. The employee is a relative of a person with a disability (whose employer was aware of the disability or the employee submitted a medical certificate to his employer attesting to the disability) and the employee’s absence was due to the need to care for or supervise the relative with a disability who was unable to report to work due to the Home Front Command directives. The employee must declare in writing that he is the only person taking leave for the purpose of supervising or caring for the relative with a disability during those days of leave. He must also declare that the employee’s spouse was not absent from work during those days.

How to calculate employees’ wages?

The wage is the employee’s daily wage, up to a maximum of ILS 1,510 per day (gross). This sum is correct to the date of this update – revisions may occur later. The wage does not include extras, such as one-time payments, holiday gifts, nonstandard premiums, annual payments, actual overtime pay, shift premiums, standby pay, reimbursements of expenses, or the grossing-up of taxes.

Do employers have to pay social benefits on wages?

Yes. Employers must pay social contributions on wages.

What about part-time employees who were unable to report to work?

The employer must pay the pro rata of the employee’s wage according to the employee’s usual hours of work relative to the total hours of work for a full-time position.

What if an employee was absent for only part of the workday?

The employer must calculate the wage proportionately to the hours of absence.

Are employees who were placed on unpaid leave during that period entitled to wages?

If the employee applied for payment of his wage and would have been entitled to payment of his wage according to the criteria specified above had he not been placed on unpaid leave, he is entitled to payment of his wage up to the sum of the indemnity the employer will receive in respect of such employee. This payment is subject to account-settling between the National Insurance Institute and the ITA.

If the employer paid the employee for the days of absence, is the employee still entitled to payment under the collective bargaining agreement?

No. Employers will not make double payments. If the employer paid the employee his full wage in respect of his days of absence, the employee will not be entitled to any additional payment based on the provisions of the collective bargaining agreement.

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Adv. Netta Bromberg, a partner at Barnea Jaffa Lande and head of the firm’s Employment Department, is at your service in this regard and for other labor law issues.