Client updates /  Labor Law

The Tel Aviv Regional Labor Court issued a new ruling expanding employers’ obligations regarding sexual harassment in the workplace and stated that employers may be obligated to prevent and address incidents of sexual harassment by customers, patients, or other third parties, even when the Prevention of Sexual Harassment Law does not directly apply.

Labor law does not go on unpaid leave, even during wartime. This update outlines several changes in the Home Front Command’s defense guidelines relating to employees returning to workplaces and the extension of permits enabling employers to require employees to work exceptional overtime hours. There is also an important update regarding an increase in the minimum wage.

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.

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 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.

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.

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.