Client updates /  Swords Of Iron

Israel’s government has drafted new regulations in the wake of Operation Swords of Iron, due to the increase in the scope and quality of cyberattacks against civilian entities.

After lengthy discussions, the Knesset approved a wartime compensation outline for businesses. The outline offers compensation of up to a maximum of ILS 1.2 million to businesses with annual turnovers ranging between ILS 12,000 and ILS 400 million.

The legislative process has ended and prescribes a series of reliefs and expansions in order to provide a solution for a relatively wide spectrum of employees sent home on unpaid leave as a result of the war. The law applies, inter alia, to pregnant women and women on maternity leave, employees with disabilities and employees over the age of 67.

Employers may claim compensation for wages paid to employees unable to report for work because of evacuation from one of the border communities specified in government decisions.

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 experience acquired in Israel during the COVID-19 pandemic provided the groundwork for the creation of a more favorable plan to support employees on unpaid leave, in order to assist businesses experiencing severe financial losses.

The compensation for businesses will be based on their fixed expenses, which they must bear despite the decrease in revenue and business activity, and to help businesses survive the period.

The Israel Securities Authority has announced several reliefs due to Operation Swords of Iron, mainly the postponement and extension of deadlines.

The state of emergency in the Israeli economy and the massive call-up of reservists are expected to adversely impact the Israeli high-tech industry. The Israel Innovation Authority is establishing an express grant track and is offering a series of reliefs to existing startups to help them sustain business continuity.

Since a combat situation in Israel is not deemed force majeure, the legislature and the regulatory authorities recommend that parties to contracts hold dialogues on the contract terms in good faith, to the extent the state of emergency does not enable all contract clauses to be performed. Concurrently, the Knesset enacted the Postponement of Deadlines Law, which allows those entitled to postpone performance of contracts under particular circumstances.