Client updates /  Employee Rights

This morning, June 22, 2025, the Home Front Command’s updated defense policy came into effect. The updated policy has implications for the operation of workplaces throughout Israel.

In light of recent complexities affecting labor relations in Israel, our Employment Department answer key questions such as who may work, from where, who must be paid and when, and who may exceed statutory overtime limits.

In Israel, many employers customarily employ teenagers during the summer vacation. Since the school year is coming to a close, we are recapping highlights of the Youth Employment Law to remind employers about what is permitted and prohibited when employing teenagers.

Employers employing more than 518 employees obligate to prepare two annual reports specifying the gender wage disparities in the workplace, publish publicly and internal.

On April 25, 2025, the public transportation fares were updated in the second phase of the “transportation justice” reform. The new fares may affect the rate of reimbursement of employees’ travel expenses.

The Freeze and Reduction of Convalescence Pay Law was approved in 2025.  As in 2024, employers will be obligated to reduce the convalescence pay payable to their employees and to transfer the reduced sums to the tax assessor, accordingly. The purpose of this law is to redirect these sums for the provision of benefits to reservists.

The minimum wage in Israel is rising by 6.25% to ILS 6,247.67 per month as of April 1, 2025 (compared to ILS 5,880 last year). The update comes into effect on April 1, 2025.

Employers may require a medical exam only in cases of suspected sick leave misuse, such as working elsewhere or following a hearing summons.

Employers’ use of technological tools to track their employees’ geolocations has sharply increased in recent years, as remote work has become more prevalent. The Israeli Privacy Protection Authority recently published its recommendations on the collection of geolocation data from employees’ vehicles.

The Ministry of Economy and Industry’s Labor Branch – Regulation and Enforcement Administration is increasing enforcement measures in workplaces with regard to the fulfillment of employer obligations and employee rights.