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Written Agreements

According to Israel's labor law, while it is not necessary to provide a written employment contract (oral employment contracts are binding), an employer is obligated to provide a form listing the terms of employment to employees within 30 days of the employment start date (seven days if the employee is a teenager). The terms of employment should contain the following information about the working conditions:

• Employer and employee identification
• Date of commencement of work and the period of employment if it is a fixed-term contract
• Description of main duties and responsibilities
• Designation of the employee and name of the direct supervisor
• Amount of wages agreed upon and due date of payment
• Length of regular working day and duration of breaks
• Weekly rest day
• Payments made by an employer for social contributions
• Severance pay
• Notice period.

As a general rule, employers are prohibited from limiting an employee's right to work for another employer after the end of their employment. However, the labor courts can approve a non-compete clause in an agreement in a certain field and for a certain period under certain circumstances, such as protection of trade secrets, provision of special consideration, investment in special training, etc.

Oral Agreements

In Israel, oral employment contracts are binding. An employer is obligated to provide a form listing the terms of employment to employees within 30 days of their employment start date (7 days if the employee is a teenager). The terms of employment should contain the following information about the working conditions:

• Employer and employee identification
• Date of commencement of work and the period of employment if it is a fixed-term contract
• Description of main duties and responsibilities
• Designation of the employee and name of the direct supervisor
• Amount of wages agreed upon and due date of payment
• Length of regular working day and duration of breaks
• Weekly rest day
• Payments made by an employer for social contributions
• Severance pay
• Notice period.

Implied Agreements

According to Israel's Law of Contracts, an employer and an individual enter into an employment contract once the employer offers the position and the potential employee accepts the offer. The law states that acceptance can occur through behavior (such as performance) or in other ways, if such acceptance is implied in the offer.

Per Israel's Working Hours and Rest Act, a standard workweek is 42 hours. However, the normal workweek regulations do not apply to the following employees:

• Police officers of the Israel Police, as well as anyone in the prison service
• Civil servants whose job requires their availability to work even outside regular working hours
• Seafarers and fishermen
• Aircrew members
• Employees in management roles or positions that require a special degree of personal trust.

A working day shall not exceed 8 hours (for those with a 6-day workweek), and night work is limited to 7 hours. Hours worked in excess of these limits are considered overtime. The maximum number of hours worked in a day cannot exceed 12 hours, including overtime. The law entitles employees to a weekly rest period of at least 36 continuous hours, including the Sabbath Day for Jewish employees.

The working hours for employees under 18 years of age are 40 hours per week and not more than 8 hours per day. Such employees cannot work on their weekly rest days. Finally, persons under 18 years of age are entitled to a break of at least 14 hours between 2 consecutive working days.

The following days are public holidays in Israel:

Employees in Israel can be required to work on public holidays due to the nature of their job. They are entitled to an additional payment of 50% of their daily wages.

Per Israel's labor law, a permanent employee's initial 12 months of service are considered a probationary period. If employees do not perform satisfactorily, they can be dismissed with the following notice periods during their probationary period:

• From 1 month to 3 months of work - 3 days
• 3 months to 6 months of work - 1 week
• 6 months to 12 months of work - 2 weeks

Notice Period

Israeli law requires employers to provide advance notice of dismissal to employees. The notice must be in writing and indicate the date of entry into the workforce.

Wage workers are entitled to the following notice periods:

• During the 1st year of service - 1 day for each month of work
• During the 2nd year of service - 14 days, plus 1 day for every 2 months of work in the 2nd year
• During the 3rd year of service - 21 days, plus 1 day for every 2 months of work in the 3rd year
• After 3 years of service - 1 month.

Salaried workers are entitled to the following notice periods:

• During the 1st 6 months of service - 1 day per month of service
• During months 7 through 12 - 6 days plus 2.5 days per month of service beyond 6 months
• After 1 year - 1 month.

Employees on probation are also entitled to notice ranging from 3 days to 2 weeks. The notice period can be waived, in part or entirely, by paying compensation to the employee in place of notice. If employers fail to give advance notice to a dismissed employee, they will be liable to pay compensation equal to the regular salary of the employee for the duration of the notice period.

Severance Benefits

According to Israel's labor law, the following employees are entitled to receive severance pay:

• Employees dismissed after working continuously for 1 year (entitled to severance pay equal to 1 month's pay for each year of service)
• Seasonal employees who have been dismissed after working for 2 seasons in 2 consecutive years
• Employees who have been dismissed due to bankruptcy or the death of their employer

If an employee resigns due to poor health, the resignation is considered a dismissal, and the employee becomes eligible to receive severance pay. In the case of an employee's death, their dependents (spouse and children) become eligible to receive severance pay as if the employee were dismissed.

The following employees are also considered to have been "dismissed," and therefore, are also eligible for severance pay equaling 1 month's pay for each year of service if they have been working continuously for 1 year:

• Female employees who resign within 9 months of delivery to care for their children
• Employees who leave employment within 9 months of the adoption of a child under 13 years of age
• Employees who resign within 9 months of receiving a foster child under 10 years of age
• Employees on a fixed-term contract that the employer does not renew
• Employees who resign to take up national, civil, or military service or serve in the Israel Police or the Israel Prison Service
• Female employees who resign to stay at a shelter for battered women that is approved by welfare services.

Minimum Wage

Israel's labor law stipulates that all employees over 18 years of age are entitled to a minimum wage. An order of the government determines the amount of minimum wage by April of each year. The minimum wage was last set on April 1, 2024, as follows:

• The minimum wage for employees working 5 days a week is ILS 271.38 (Israeli shekels) per week.
• The minimum wage for employees working 6 days a week is ILS 235.38 per week.
• The minimum hourly wage for a total of 186 hours of work is ILS 31.61.
• The minimum hourly wage for a total of 182 hours of work is ILS 32.30.
• The minimum monthly salary is ILS 5,880.02

Salary must be paid at regular intervals. Salary paid on a monthly basis shall be paid at the end of the month in which it is paid. Wages that are paid on an hourly, daily, weekly basis or according to the amount of produce, will be paid, if no other date is specified in a collective agreement or labor contract. Wages paid for the performance of certain work, the performance of which lasts more than 14 days, will be paid on the day the performance of the work is completed.

Overtime, Holiday & Vacation Pay

In Israel, overtime work is only allowed in cases of emergency, accidents, when machinery or equipment urgently needs repair, or to prevent serious disruption to the normal process of work. Employers need to notify the regional labor inspector no later than the following day if an employee works overtime. Overtime hours are limited to 4 hours in a day and 100 hours in a year.

Overtime hours are paid as follows:

• First 2 hours of overtime - 125% of regular pay
• Any overtime work beyond the first 2 hours - 150% of regular pay.

Employers are prohibited from having employees work on their weekly rest days unless there is an emergency. Employees working on weekly rest days or public holidays are entitled to 150% of their daily wages.

Annual leave allowance is equal to the employee's regular salary and is to be paid in advance by the employer.

Visas

A foreign national who is entering Israel requires a visa. The following visa categories are available:

• Immigration visa - This visa is issued to Jewish persons from other countries. The authority to issue this visa lies with the diplomatic/consular representative.
• A/1 temporary visa - This visa is issued to people who are eligible for an immigration visa and have completed the examination process.
• A/2 student visa - This visa is issued to persons who wish to study in Israel (academic institutions, elementary and high schools, yeshivot, and youth institutions of the Jewish Agency). The A/2 visa is valid for up to one year and grants multiple entries and exits. Student visa recipients are not permitted to work in Israel.
• A/3 clergy visa - This visa is granted to religious priests to fulfill their clerical duties among their religious communities in Israel, following the invitation of a recognized religious institution in Israel. Only the Ministry of Interior can grant this visa.
• A/4 visa - This visa is granted to spouses and children of recipients of A/2 or A/3 visas.
• B/1 work visa - This visa is issued to people who come to Israel for a limited period with approval from the Ministry of Interior. It is valid for three years.
• B/2 visitor's visa - This visa is granted to people who come to Israel for a short time (e.g., tourism, business meetings, etc.) It remains valid for three months from the issue date.

Work Permits

Foreign nationals who wish to work in Israel must obtain a work permit. Employers apply for a visa and work permit on behalf of their employees. They must submit a copy of the labor contract to the Ministry of Interior. The permit is granted for at least one year, a maximum of 3 years, and can be extended for 5 years in total.

Before hiring a foreign worker, employers should ensure the following:

• The employee should have received approval from a medical institution in the country of residence at least three months before their entry into Israel.
• The employer must enter into a written labor contract with the employee.
• The employer must arrange for health insurance.
• The employer must provide or arrange for appropriate accommodation for the duration of work.