For employees and employers · Updated:

Employment law in Israel

Israel's statutory employment floor cannot be contracted out of, and the Labour Courts are comparatively quick and comparatively accessible. This is what the law gives an employee, what it requires of an employer, and how a claim actually runs.

In short

An employee who was not paid, was unlawfully dismissed or did not receive severance pay can sue in the Regional Labour Court, which has exclusive jurisdiction (section 24 of the Labour Court Law). As a rule, a wage claim is time-barred after seven years (section 5 of the Prescription Law), but some rights expire sooner. Where the employer does not produce attendance records, the burden of proof on disputed hours shifts to it (section 26B of the Wage Protection Law).

Office in Kiryat Ono, in the Tel Aviv metropolitan area; Hebrew and English.

Dismissed? Not paid what you are owed? Here is what can be done

Claims over unpaid wages, withheld severance and unlawful dismissal are heard in the Regional Labour Courts. Many employees do not know that they may sue without a lawyer, and that lower-value claims have an expedited-hearing track.

Yaron Meiri, Adv. & CPA practises in employment law and represents both employees and employers, in the Labour Courts and in mediation. The accounting review is part of the legal service and is not a separate accounting engagement. What follows is the material worth knowing.

The statutory framework

Israeli employment law rests on a number of principal statutes:

  • Wage Protection Law, 5718-1958 (חוק הגנת השכר, תשי״ח-1958): protects the employee's wage and requires the employer to pay on time. Late payment of wages gives rise to additional compensation without any need to prove loss.
  • Hours of Work and Rest Law, 5711-1951 (חוק שעות עבודה ומנוחה, תשי״א-1951): sets a working week of no more than 45 hours (section 3), which the extension order on shortening the working week reduced to 42 hours from 1 April 2018; it requires payment of an overtime premium (section 16).
  • Annual Leave Law, 5711-1951 (חוק חופשה שנתית, תשי״א-1951): entitles every employee to a minimum number of annual leave days (16 days in each of the first five years, rising with seniority — section 3).
  • National Insurance Law [Consolidated Version], 5755-1995 (חוק הביטוח הלאומי, התשנ״ה-1995): requires the employer to deduct and remit national insurance contributions for the employee.
  • Equal Employment Opportunities Law, 5748-1988 (חוק שוויון ההזדמנויות בעבודה, תשמ״ח-1988): prohibits discrimination on grounds of sex, sexual orientation, personal status, pregnancy, parenthood, age, race, religion, nationality, country of origin, place of residence, views, party affiliation, reserve service and more (section 2). Apart from section 7 (harm connected with sexual harassment), the Law does not apply to an employer of fewer than six employees (section 21(c)). Discrimination on grounds of disability is prohibited by the Equal Rights for Persons with Disabilities Law, 5758-1998.
  • Severance Pay Law, 5723-1963 (חוק פיצויי פיטורים, תשכ״ג-1963): establishes the right to severance pay of an employee who has worked for one year continuously for the same employer or at the same workplace and is dismissed (section 1(a)), at the rate of one month's salary for each year of employment (section 12(a)).

Key sections of the Wage Protection Law, the Severance Pay Law and the Advance Notice of Dismissal and Resignation Law are available in English on the key statutory provisions page (unofficial translation; the Hebrew text governs).

The basic rights every employee should know

Minimum wage and payment on time. Every employee is entitled to the minimum wage (from 1 April 2026, ILS 6,443.85 a month for a full-time employee aged 18 or over; the amount is updated from time to time) and to be paid by the 9th of the month following the month in which the wage was earned. Late payment of wages gives rise to a cause of action.

Paid overtime. Hours worked beyond the working day or the working week (42 hours under the extension order) are overtime, and attract a premium of at least 125% for the first two overtime hours in a day and at least 150% for each hour after that (sections 1 and 16 of the Hours of Work and Rest Law).

Weekly rest. At least 36 consecutive hours. Work during the weekly rest attracts a special premium.

Annual leave. An employee is entitled to at least 16 days' leave in each of the first five years, rising with seniority (section 3 of the Annual Leave Law). An employer who did not allow leave to be taken must pay for the accrued balance on termination.

Protection against arbitrary dismissal. Before a dismissal the employer must hold a hearing — a duty developed in the case law of the Labour Courts (National Labour Court, Labour Appeal 1027/01 Gutterman v. Emek Yezreel Academic College, 7.1.2003). There is no general requirement in the private sector to prove a reason for dismissal, but dismissal on prohibited grounds is unlawful — among them pregnancy (section 9 of the Women's Employment Law) and discrimination (section 2 of the Equal Employment Opportunities Law).

Equality at work. It is prohibited to pay a woman less than a man doing the same job, and prohibited to withhold promotion on grounds of gender, age, religion or nationality.

What has to be in your employment contract

An Israeli employment contract must include a description of the role, the salary and financial terms, the scope of the position and the terms on which it ends. In addition, the law requires the employer to give the employee written notice of the employment terms within 30 days of the start of employment (section 1 of the Notice to Employee and to Candidate for Employment Law).

An important principle: an employment contract cannot subtract from rights that the statute confers. If you signed a contract waiving overtime, severance pay or annual leave, the waiver is ineffective. The statute overrides the contract.

Common employment disputes — what to do

Unpaid wages. Send the employer a written demand. If it is not resolved, go to the Regional Labour Court. A claim by an employee against the employer is within that court's exclusive jurisdiction under section 24(a)(1) of the Labour Court Law, whatever the amount — the Small Claims Court has no jurisdiction over it at all. The Labour Court's expedited-hearing track is meant for lower-value claims and proceeds without a requirement of representation. The steps, delayed-wage compensation and the time limits are set out on the unpaid wages page.

Unpaid overtime. Keep records — emails, messages, attendance reports. Where hours are disputed and the employer does not produce attendance records, the burden of proof shifts to the employer, for up to 15 overtime hours a week or 60 a month (section 26B of the Wage Protection Law).

Arbitrary dismissal. If you were dismissed without a hearing, there is a cause of action. If you were dismissed because of pregnancy, reserve military service or a complaint to the authorities, special protections apply. Take advice quickly, because time limits apply.

Breach of the employment contract. Record the breach in writing, send a letter of demand, and consider mediation before filing — it is often cheaper.

Sexual harassment at work. File a complaint through the procedure the employer is required to provide (section 7 of the Prevention of Sexual Harassment Law, 5758-1998) and keep a record of it. Harassment is also a civil wrong that can be sued on (section 6) and, in the cases the law lists, a criminal offence (section 5).

Resignation and dismissal — the difference, and why it matters

Resignation. An employee who resigns in circumstances treated in law as a dismissal — that is, because of circumstances the employer created (a change in wage, a deterioration in conditions, harassment) — is entitled to severance pay as though dismissed. This is a critical point that many people miss.

Dismissal. The employer must hold a hearing before dismissing, give advance notice (up to a month, depending on seniority), and pay severance — to an employee who has worked for at least one year continuously — at the rate of one month's salary for each year of employment (sections 1(a) and 12(a) of the Severance Pay Law).

Severance pay. The formula: last monthly salary × years of employment. Part of the severance may already be held in a pension fund — it is important to check what has accrued there and what is owed directly by the employer. For eligibility, the calculation and section 14 arrangements, see severance pay in Israel.

Special protections for vulnerable groups

Pregnant employees: an employee who is pregnant and has worked for at least six months may be dismissed only with a permit from the Minister of Labour, which will not be given if the dismissal is connected with the pregnancy; during birth and parenting leave dismissal is prohibited outright, and in the 60 days after it only with a permit, which may be given only if the dismissal is not connected with the birth or the leave and the business has ceased to operate or the employer is in bankruptcy or liquidation (section 9 of the Women's Employment Law).

Employees with disabilities: entitled to workplace accommodations, unless they would impose an undue burden on the employer, and may not be dismissed on account of the disability (section 8 of the Equal Rights for Persons with Disabilities Law, 5758-1998). These duties do not apply to an employer of fewer than six employees (section 13(a) of that Law, applying section 21(c) of the Equal Employment Opportunities Law).

Reserve soldiers: protected against dismissal for a defined period following service.

Employee representatives and works committees: an employee may not be dismissed, or have their terms worsened, because of membership or activity in a workers' organisation, or in a works committee operating within it (section 33J of the Collective Agreements Law, 5717-1957); a collective agreement may add a further procedure.

Frequently asked questions

What are an employee's rights in Israel?

The minimum wage and payment on time, overtime premiums, weekly rest, annual leave, national insurance and pension contributions, and protection against arbitrary dismissal and against discrimination. All of these are laid down by statute, extension orders and case law, and as a rule cannot be waived by contract.

What do I do if my employer is not paying me?

Send a written demand and keep a record of it. If the wages are still not paid, a claim can be filed in the Labour Court. As a rule, a wage claim is time-barred after seven years (section 5 of the Prescription Law, 5718-1958), running from the date the wage should have been paid. Some rights expire sooner: compensation for late payment of wages, as a rule within one year, or within 60 days of receiving the wage, whichever is earlier (section 17A of the Wage Protection Law), and claims under the Annual Leave Law within three years (section 31 of that Law).

What are my rights when my employer wants to dismiss me?

Before dismissal, the right to a hearing. After the decision, advance notice. And on termination, severance pay, if you have worked for at least one year continuously (section 1(a) of the Severance Pay Law). If any one of the three was not observed, there is a cause of action.

How much notice do I have to give if I resign?

Under section 5 of the Advance Notice of Dismissal and Resignation Law, 5761-2001, the same periods apply to resignation as to dismissal: for a monthly-salaried employee, one day for each month in the first six months, then six days plus two and a half days for each further month until the end of the first year, and one month after that. An employee who does not give notice may have to pay the employer compensation equal to their wage for the missing period (section 7(b)).

Does resigning entitle me to severance pay?

Not by default — but yes where the resignation is treated in law as a dismissal: where the employer cut the wage, changed material terms, created conditions in which it was impossible to work, or harassed the employee. Taking advice before resigning can be decisive here.

Next steps

Document everything — emails, agreements, payslips, correspondence. Written evidence is the foundation of any claim. Take advice before signing anything: a waiver letter, a retirement agreement, a termination agreement.

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Legal framework and sources

Checked against the current statutory text in September 2026. Every source below is in Hebrew; the Hebrew text is the governing text of the law. This information is general and is not legal advice.

This page is general information about Israeli employment law, written for English-speaking readers. It is not legal advice, does not create an attorney-client relationship, and is no substitute for advice on your own facts. Figures such as the minimum wage are updated periodically, and the governing text of every statute cited is the Hebrew original. Past results do not guarantee similar results in the future.

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