Client updates /  employment

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 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.

The collective bargaining agreement signed between the Histadrut-General Federation of Labor in Israel and the Presidium of Israeli Business Organizations will come into effect only after an extension order is issued. The agreement regulates the rights of both employees serving in the reserves and their spouses, including the addition of paid vacation days and anchoring protections against dismissal

The Israeli Minister of Labor signed a general permit to employ teenagers during evening hours due to the state of emergency in the economy. This permit expands the work hours during which teenagers between the ages of 16 and 18 may be employed.

The update will take effect already in the salaries for April 2023 and will affect the sums of social contributions to provident funds and severance pay, vacation pay, overtime pay, and sick pay.

Employers are able to receive compensation from the ITA for wage payments paid to employees who were absent during the Operation.

An amendment to the Employment of Women Law, which went into effect on March 14, dictates that employers may not refuse to hire women or single parents simply because they do not agree to work night shifts due to family considerations. 

A new amendment to the Male and Female Workers (Equal Pay) Law aims to promote equal employment terms in Israel.

Omicron is taking control of the labor market in Israel. Many employees are stuck at home in quarantine (or are ill). At the same time, there is still plenty of work. As a result, and in order to enable the Israeli economy to contend with the drastic drop in the number of available employees in the labor market, the government issued a new special permit on January 16, 2022, extending permitted overtime hours