Labor Court Law: the sections this site discusses

What the law provides

Section 24 of the Law gives the Regional Labor Court exclusive jurisdiction to hear claims whose cause of action lies in an employer-employee relationship, including claims for wages, severance pay, social benefits and unlawful dismissal, instead of the ordinary civil court. The maximum amount for claims heard in an expedited proceeding is set by the Minister in charge (today the Minister of Labor) and the Minister of Justice, after consulting the President of the National Labor Court and the employees’ and employers’ organizations, and with the approval of the Knesset Labor and Welfare Committee (section 31(a)). Under the Labor Court Regulations (Determination of the Claim Amount in Expedited Proceedings), 5750-1990 (תקנות בית הדין לעבודה (קביעת סכום התביעה בדיון מהיר), התש״ן-1990), the amount is updated on 1 January each year to three times the average wage, rounded to the nearest NIS 100 (regulation 1A). In 2026 it is NIS 40,700, not including compensation for late payment of wages, linkage differentials and interest (regulation 1).

In claims for a limited amount, section 31(a) requires an “expedited proceeding”: the court is not bound by the ordinary rules of procedure, and acts in the way it considers most useful for doing justice quickly. It may give a judgment, or approve a settlement with the consent of the parties. The judgment is usually final, and an appeal against it requires leave from the President of the National Labor Court or a judge authorized for this. If the volume of evidence or the complexity of the questions in dispute does not allow a quick decision, the court may stop the expedited proceeding and transfer the claim to the ordinary track.

A numerical example

An employee who was dismissed sues their employer for NIS 6,000 in wage differences that were not paid to them in their last three months of work. This is a small monetary claim arising from an employment relationship, so it falls within the exclusive jurisdiction of the Regional Labor Court under section 24, not the Magistrates’ Court. Because the amount claimed does not exceed the amount set for an expedited proceeding (NIS 40,700 in 2026), the court will hear it in an “expedited proceeding” under section 31(a), unless it decides to stop the expedited proceeding and transfer the claim to the ordinary track (section 31(e)).

For a comprehensive guide to employment law in Israel and to claims for late payment of wages, see Employment lawyer and Late salary in Israel: when and how to sue the employer, and the page Employee rights and employment law. See also: Mediation in employment disputes: how to resolve an employee-employer dispute without a judgment.

The sections the site discusses

This page brings together 2 sections of the Labor Court Law that are discussed in 3 guides on this site. The title of each section is the marginal note of the consolidated version of the Law (unofficial translation), not a heading we wrote. The last column links to the guides on this site that discuss that section.

The original text of the law

• Labor Court Law, 5729-1969: text of the Law
• Labor Court Law: consolidated version on Nevo (Israeli legal database)

FAQ

Who has jurisdiction over wage and dismissal claims: the Magistrates’ Court or the Labor Court?
The Regional Labor Court, which has exclusive jurisdiction over claims whose cause of action lies in an employer-employee relationship, including claims for wages, severance pay and social benefits (section 24 of the Labor Court Law).

What is an “expedited proceeding” in the Labor Court?
A procedure for claims of a limited amount (in 2026, up to NIS 40,700, not including compensation for late payment of wages, linkage differentials and interest), in which the court is not bound by the ordinary rules of civil procedure and acts in the most efficient way to reach a quick decision. The judgment is usually final, and an appeal against it requires leave (section 31).

Can you appeal a judgment given in an expedited proceeding?
Usually not automatically: you need leave to appeal from the President of the National Labor Court or from a judge authorized for this.

This page collects the references to legislation on the site. The section headings are the marginal notes as worded in the consolidated text of the law, and are not our interpretation. The binding text is the one published in Sefer HaHukim (the official gazette of statutes). The content here is general information and is not legal advice. Translated: 12 November 2026 · Hebrew version updated: 13 October 2026.