Client updates /  employees

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 account-settling must include wage components based on seniority, actual work (like overtime or rest-day work), and qualifying events.

A new extension order signed in March 2025 applies to employees in the construction, infrastructure, heavy equipment, public works, civil engineering and renovation sectors and came into effect on April 1.

A new extension order for the institutional catering sector took effect on April 1, 2025, applying the 2022 collective agreement to all employers and employees in the industry. The order improves conditions for one of the most underpaid and overworked groups in the labor market.

As a rule, employers in Israel that provide company cars for their employees’ use must attribute income to those employees in accordance with the imputed value of the use of the car prescribed in the Income Tax Regulations. Moreover, even if the car was in the employee’s possession for only part of the month, employers must attribute income to the employees for the full imputed value of the use of the car. However, the Israel Tax Authority has issued new special instructions because of the Swords of Iron War.

The various restrictions being imposed on the population, including evacuations of many residents from northern and southern regions, the unique situation of the families of abductees, captives, and missing persons, and the massive mobilization of reservists, have led to an amendment to the Protection of Employees in Times of Emergency Law. This amendment expands the protection of employees from layoffs under exceptional circumstances. 

Updated regulations for the implementation of the Green Pass in Israeli workplaces will come into effect on October 5, 2021. Following are some of the main guidelines of the regulations.

In light of the COVID-19 crisis, many employers have been forced to reduce employees’ salaries. Such reductions, when not made through agreements or in an orderly fashion, may be fertile ground for claims regarding material worsening of work conditions, effective termination proceedings, and creating a stress-filled work environment.

The COVID-19 crisis has thrown many employers into economic difficulties. In these uncertain times, many employers are asking themselves if they are obligated to pay their employees bonuses. Just before the end of 2020, the Tel Aviv Regional Labor Court issued a new ruling on this very subject. 

The lockdown entered inְto effect on September 25, 2020, at 14:00, and is expected to continue until October 10, 2020. It is possible at the end of this period the lockdown will be extended. We have prepared an in-depth update for employers on the relevant topics.