Background Checks

Employers can conduct background checks, but they must comply with privacy laws and principles of dignity and non-discrimination.

• Criminal Record Checks are generally prohibited, except for specific roles such as:
• Government security positions.
• Jobs involving children, disabled, or mentally ill individuals—where male candidates must provide a police certificate confirming no sex crime convictions.
• Economic/Financial Checks are not allowed under Israeli law.
• Educational and Employment Verification are permitted with the candidate’s explicit consent.
• Social Media Checks are allowed, but must be conducted responsibly and without discrimination

Verification and New Hire Reporting

Employers must also comply with verification and reporting obligations:

• Report new hires to the Israeli Tax Authority and National Insurance Institute (Bituach Leumi) within a specified timeframe (typically within 14 days).
• Verify the employee’s legal status to work in Israel, especially for foreign nationals.
• Maintain accurate employment records for audits and compliance checks.

For foreign workers, employers must also ensure:

• Valid work permits and visas
• Health insurance coverage
• Contributions to designated accounts for severance and benefits

Onboarding Process & Documentation

Upon hiring a new employee, Israeli employers must collect and maintain the following documents:

• Signed employment agreement (or at minimum, a written notice of employment terms)
• Copy of the employee’s ID or passport
• Bank account details for salary payments
• Tax deduction form (Form 101)
• National Insurance (Bituach Leumi) registration
• Proof of eligibility to work in Israel (for foreign workers: valid visa, work permit, and health insurance)
• Education or certification documents, if relevant to the role

Healthcare

Israel operates a universal healthcare system funded through mandatory contributions to the National Insurance Institute (Bituach Leumi). All residents, including employees, are entitled to receive healthcare services through one of four public health funds (Kupot Holim).

Employer Responsibilities

Employers are legally required to:

• Deduct health tax from employee salaries
• Remit contributions to Bituach Leumi on time
• Provide payslips showing these deductions

Employee health tax rates are:

• 3.23% on monthly income up to ₪7,522 ($2,164.14 USD)
• 5.17% on income above ₪7,522 ($2,164.14 USD)

(Note: Employers do not contribute directly to health tax)

Supplementary Health Insurance

While the public system offers broad coverage, many employees opt for private health insurance to access:

• Shorter wait times
• Choice of specialists
• Private hospital care
• Coverage for treatments not fully included in the public system

Employers often offer group private health plans, either fully funded or partially subsidized. This is a common and valued benefit in competitive workplaces.

Retirement

Mandatory pension contributions are a key component of employee benefits in Israel. Both employers and employees are legally required to contribute a portion of the employee’s salary to a recognized pension fund.

The minimum contribution rates are as follows:

• Employers contribute 6.5% toward pension savings and an additional 8.33% toward severance (which is usually deposited into the pension fund).
• Employees contribute 6% of their salary toward pension savings.
• This brings the total minimum contribution to 20.83% of the employee’s salary.

The 8.33% severance contribution by the employer typically fulfills the legal severance pay obligation for the portion of the salary covered by these contributions. Employees can choose their pension fund from a list of approved providers.

Additional Savings – Keren Hishtalmut:

• The Education Fund (Keren Hishtalmut) is a popular long-term savings plan that complements pension savings. Though not mandatory, it is widely offered and provides tax-free savings after six years, making it a highly valued benefit.

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Details

In Israel, employment relationships are generally governed by two main types of contracts: indefinite-term and fixed-term agreements. The choice between them depends on the nature and duration of the job.

• Indefinite-term contracts are open-ended and continue until either the employer or employee terminates the agreement, following legal procedures. These are the most common type of employment contracts in Israel and are typically used for permanent or long-term roles. Termination requires advance notice, and severance pay may be applicable.
• Fixed-term contracts are used for employment that is limited to a specific period or tied to the completion of a particular project. These contracts automatically end when the term expires. However, if they are renewed repeatedly or if the employee continues working beyond the agreed term without a new contract, the arrangement may be legally considered an indefinite-term contract, which carries different legal implications.

Israeli law requires employers to provide employees with a written notice outlining the terms of employment within 30 days of starting work. While a full employment contract is common, this notice is the legal minimum and must include the following:

• Full names and identification numbers of both the employer and employee
• Start date of employment
• Job title and a description of the main duties
• Name of the employee’s direct supervisor
• Details of the standard working day or week
• Salary or wage details, including all components such as base pay, bonuses, and commissions
• Payment schedule for wages
• Information about social benefits, including pension and study funds, with fund names and contribution rates
• Annual leave entitlement
• Sick leave entitlement
• Any applicable collective agreement or extension order
• Required notice period for termination by either party

Any changes to these terms must also be communicated to the employee in writing.

Probation Period

Probationary periods typically range from one to six months, with three months being the most common. The exact length should be explicitly stated in the employment contract.

Visas

• B/2 Visitor Visa: For tourism/business (max 90 days); not for work.
• B/1 Work Visa: Requires employer sponsorship; valid up to 1 year, extendable.
• A/2 Student Visa: For academic purposes; renewable.
• Application Process: Includes document submission, interviews, and consulate processing.
• Special Notes: Visa waiver countries may have exceptions; overstaying can lead to penalties.

Independent Contractors

Independent contractors (self-employed individuals) are treated differently from employees under Israeli labor law. However, recent reforms have increased scrutiny of contractor arrangements to prevent misclassification.

Key Legal Considerations:

• Independent contractors operate under a service agreement and are not entitled to employee benefits such as paid leave, pension contributions, or severance pay.
• Misclassification Risk: If a contractor functions like an employee—working under direct supervision, using company tools, or having fixed hours—they may be reclassified as an employee by the courts.
• Liability: Companies found to have misclassified workers may be liable for retroactive benefits, taxes, and penalties.

New 2025 Regulations:

• As of January 1, 2025, contractor agreements must be updated to comply with the Regulations for Increased Enforcement of Labor Laws.
• These updates include detailed service descriptions, payment structures, and compliance mechanisms to ensure transparency and legal separation from employee status.

Paid Time Off

Employees in Israel are entitled to paid annual leave, with the number of days increasing based on years of service:

• During the first four years, employees working a five-day week receive 14 calendar days of vacation per year.
• In the fifth year, this increases to 16 days.
• From the sixth year onward, the entitlement continues to grow, reaching up to 24 days after eight years.

Vacation days accrue monthly and can typically be carried over for a limited period, often up to three years, depending on the employment agreement or collective bargaining terms. Upon termination, employees are entitled to payment for unused vacation days. Vacation pay is calculated at the employee’s regular salary rate.

Public Holidays

Public holidays that fall on the weekend are usually lost. Holidays can be swapped out to align with one’s religious observance.

• Municipal Elections Day
• Passover (Pesach) Eve (Half working Day)
• Passover (Pesach)
• Seventh Day of Passover Eve (Half working Day)
• Seventh Day of Passover
• Independence Day Eve (Half working Day)
• Independence Day
• Shavuot Eve (Half working Day)
• Shavuot
• New Year (Rosh Hashanah) Eve (Half working Day)
• New Year (Rosh Hashanah) (2 days)
• Yom Kippur Eve
• Yom Kippur
• Sukkot Eve (Half working Day)
• Sukkot
• Simchat Torah (Half working Day)
• Simchat Torah

Bereavement

In the event of the death of an immediate family member, employees in Israel are entitled to up to seven calendar days of paid bereavement leave. This period allows employees time to grieve and attend to personal and family matters.

To qualify for paid bereavement leave, the employee must have completed at least three months of continuous employment with their current employer. Once eligible, the employer is responsible for fully compensating the employee for the duration of the leave

Maternity Leave

Female employees are entitled to 26 weeks of maternity leave after completing one year of employment:

• Up to 7 weeks may be taken before the expected due date
• The remaining weeks are taken after childbirth
• The first 15 weeks are paid by the National Insurance Institute (Bituach Leumi), while the remaining 11 weeks are unpaid

Employees with less than one year of service are entitled to 15 weeks of maternity leave. In cases of multiple births or complications, the leave may be extended by an additional three weeks. If a child is lost after birth, the mother may take up to 60 days of unpaid leave.

From the 7th week onward, the mother may return to work and transfer the remaining leave to her spouse, if desired.

Paternity Leave

Fathers are entitled to up to 5 days of leave following the birth of a child:

• The first 3 days are deducted from the father’s annual leave
• The remaining 2 days are deducted from accrued sick leave

Parental Leave

Fathers may also take time off as part of the mother’s maternity leave entitlement, provided the mother returns to work early and formally transfers the remaining leave to the father.

Sick Leave

Employees accrue 1.5 sick days per month, up to a maximum of 90 days. Sick leave is paid according to the following structure:

• Day 1: No payment
• Days 2–3: 50% of the regular wage
• Day 4 onward: 100% of the regular wage

A medical certificate is required to receive sick pay. Sick leave may also be used to care for a sick child, spouse, or parent under specific conditions.

Special Provision for Serious Illness:

• Employees undergoing treatment or follow-up for malignant diseases (e.g., cancer) or dialysis are entitled to 100% sick pay from the first day of absence, up to 90 days, provided they submit medical documentation confirming the need for treatment.

Termination Requirements

At this time, Vensure does not have termination requirement details available. See Notice Period section below for more details.

Notice Period

The required notice period for terminating employment in Israel depends on the employee’s length of service and whether they are paid monthly or hourly.

For monthly-paid employees:

• 0–6 months of service: One day of notice per month worked
• 7–12 months of service: Six days, plus 2.5 additional days for each month beyond the sixth
• After 1 year: A full 30-day notice is required

For hourly or daily-paid employees, the notice period varies slightly and increases incrementally with each year of service.

Employers may waive the employee’s obligation to work during the notice period, but must still provide payment in lieu of notice.

Severance Pay

Employees who are dismissed after completing at least one year of continuous service are entitled to severance pay. The standard calculation is:

• One month’s salary for each year of employment, including partial years on a pro-rata basis

Severance pay is based on the employee’s regular monthly wage, including fixed components such as base salary and consistent allowances.

Section 14 Arrangement

Under Section 14 of the Severance Pay Law, employers may opt to make monthly contributions of 8.33% of the employee’s salary into a designated pension or severance fund. This arrangement:

• Fulfills the employer’s severance obligation in advance
• Allows the employee to receive the accumulated funds even if they resign, without needing to prove eligibility
• Must be clearly stated in the employment agreement and mutually agreed upon

This arrangement is widely used in Israel and offers both parties clarity and flexibility in

Unemployment Insurance

To qualify for unemployment benefits in Israel, an individual must meet the following conditions:

• Be a resident of Israel recognized by the National Insurance Institute (Bituach Leumi)
• Be between 20 and 67 years of age
• Have been legally employed (self-employed individuals are not eligible)
• Have worked and paid National Insurance contributions for at least 12 out of the 18 months prior to unemployment
• Be registered with the Employment Bureau (Lishkat HaTaasuka) and actively seeking work

Note: Paid leave (e.g., maternity, sick leave, bereavement) counts toward the 12-month work requirement. Approved unpaid leave may extend the 18-month window.

Anti-Discrimination Practices

Israeli law strictly prohibits discrimination in all aspects of employment. The cornerstone of this legal framework is the Equal Employment Opportunities Law (1988), which applies to every stage of the employment relationship—from recruitment and hiring to promotion, training, and termination. Employers are prohibited from discriminating against employees or job candidates based on the following:

• Age
• Gender
• Sexual orientation
• Marital status
• Parenthood
• Religion
• Nationality
• Country of origin
• Place of residence
• Political beliefs
• Membership in a trade union or participation in union activities
• Disability
• Pregnancy
• Fertility treatments
• Military reserve duty

These protections are designed to ensure equal access to employment opportunities and fair treatment in the workplace.

Workplace Safety Standards

Israeli employers are legally obligated to provide a safe and healthy work environment for their employees. This duty is primarily governed by the Occupational Safety Ordinance (1970) and the Labor Inspection Organization Law (1954), enforced by the Occupational Safety and Health Administration under the Ministry of Labor.

Employers must take proactive steps to identify and mitigate workplace hazards. Key obligations include:

• Conducting risk assessments to identify potential dangers in the work environment
• Implementing safety procedures and protocols tailored to the specific risks of the workplace
• Providing personal protective equipment (PPE) and ensuring its proper use
• Maintaining equipment and infrastructure, including ventilation, lighting, and machinery
• Delivering safety training to all employees, especially those in high-risk roles

Employers must also ensure that safety signage is visible and that emergency procedures are clearly communicated.

Employee Responsibilities

Employees are expected to:

• Follow all safety instructions and protocols
• Use protective equipment as required
• Report unsafe conditions or incidents to supervisors or safety officers

Inspections and Enforcement

The Ministry of Labor conducts regular inspections across all sectors—industry, construction, agriculture, and services—to ensure compliance with safety regulations. Inspectors have the authority to:

• Issue warnings or fines
• Suspend operations in hazardous environments
• Investigate workplace accidents and occupational illnesses

Employee Rights

Employees have the right to:

• Report unsafe working conditions without fear of retaliation
• Refuse to work in situations that pose an immediate and serious threat to their health or safety
• Receive medical care and compensation in the event of a work-related injury (through the National Insurance Institute)

Workers’ Compensation

In Israel, worker’s compensation is primarily governed by the National Insurance Institute (NII)—known as Bituach Leumi. This system provides financial support and medical coverage to employees who are injured at work or suffer from occupational illnesses.

Coverage and Eligibility

All salaried employees and certain categories of self-employed individuals are automatically covered under the NII’s work injury insurance. Coverage includes:

• Workplace accidents
• Injuries during commutes (under specific conditions)
• Occupational diseases recognized by law

Benefits Provided

If a worker is injured on the job, they may be entitled to:

• Medical treatment fully covered by the NII
• Daily injury allowance (up to 91 days) equal to 75% of the worker’s average wage
• Disability pension or grant, depending on the degree of permanent disability
• Vocational rehabilitation, if the injury prevents the worker from returning to their previous job

Employer Responsibilities

Employers must:

• Report work injuries to the NII within 48 hours
• Provide Form BL/250 to the injured employee for medical treatment
• Maintain a safe work environment in compliance with occupational safety regulations

Failure to report or comply can result in fines and legal liability.

Filing a Claim

Employees must:

• Seek medical attention immediately and obtain documentation
• Submit a claim to the NII within 12 months of the injury
• Provide supporting documents, including medical records and employer reports

Labor Law Sanctions

Prevention of Sexual Harassment Law (Amended 2025): Applies to all service procurement entities. Fines for non-compliance with training and reporting obligations. Legal liability for failing to prevent or address harassment. Enforcement by labor inspectors and civil courts.

Increased Enforcement of Labor Laws Regulations (Effective Jan 1, 2025): Applies to all employers using service contractors. Administrative fines for non-compliant contractor agreements. Suspension of contracts or public tenders. Personal liability for company officers in severe cases.

Military Reserve Duty Protection Order: Protects employees who served in the reserves between Oct 2023–Dec 2024. Employers who dismiss protected employees within 60 days post-service may face: Reinstatement orders, Compensation claims and Ministry of Labor investigations.

Wage Protection Law: Ensures timely and full payment of wages. Fines for late or partial wage payments. Criminal charges in cases of repeated or intentional violations. Court-ordered compensation to employees.

Employment of Women Law: Protects pregnant employees and those on maternity leave. Dismissal without Ministry of Labor approval is void. Employers may face fines and reinstatement orders.

Equal Opportunities in Employment Law: Prohibits discrimination based on gender, age, religion, etc.