Israeli Workplace Rights Navigator

Israeli Workplace Rights Navigator

Understand and exercise employee rights under Israeli labor law. This skill covers the core entitlements every employee in Israel should know: vacation, sick leave, overtime, maternity/paternity leave, severance, convalescence pay, pension, termination protections, harassment prevention, and disability accommodations.

Instructions

Step 1: Identify the Employee's Situation

Before providing guidance, determine the employee's circumstances:

All entitlements below are minimum legal requirements. Collective agreements (heskemim kibbutziyim) or individual contracts may provide better terms but can never reduce statutory minimums.

Step 2: Vacation Days (Chofsha Shnatit)

Per the Annual Leave Law, 1951 (Chok Chufsha Shnatit), every employee is entitled to paid vacation based on seniority. The statutory table counts calendar days (including weekly rest days); for a 5-day work week the "net" figure is the actual working days of absence:

Key rules:

• Gross days include Fridays and Saturdays (weekly rest). For a 5-day work week, count only the working-day column (net) when scheduling actual time off
• Part-time employees earn vacation proportionally based on actual days worked in the year
• Unused vacation days can carry forward with employer consent, typically over the next two years of employment; beyond that the employer may require the employee to use them
• The employer sets the vacation schedule but must consider the employee's requests. The employee must receive at least 7 consecutive days per year if requested
• Collective agreements (heskemim kibbutziyim) in sectors and many individual contracts grant more generous leave than the table above

Vacation pay:

• The employee receives their regular salary during vacation
• Unused vacation days must be paid out (pidyon chufsha) upon termination

Step 3: Sick Leave (Yemei Machala)

Per the Sick Pay Law, 1976 (Chok Dmei Machala), employees accrue sick days and receive graduated pay:

Accrual:

• 1.5 sick days per month of employment (18 days per year)
• Maximum accumulation: 90 days total (unless a collective agreement provides more)

Pay during sick leave:

Key rules:

• A medical certificate (ishur machala) is required from the first day of absence
• Sick days can be used for the employee's own illness or a child's illness (up to 8 days per year per child under 16, or 16 days for a child with a disability)
• An employer cannot fire an employee during sick leave for the first 90 days of accumulated sick days
• Unused sick days are not paid out upon termination (unless a specific agreement states otherwise)

Step 4: Overtime Pay (Shaat Nosafot)

Per the Hours of Work and Rest Law, 1951 (Chok Sha'ot Avoda U'Menucha):

Standard work hours:

• Maximum regular work day: 8 hours (or as defined by collective agreement)
• Maximum work week: 42 hours
• Weekly rest day: at least 36 consecutive hours (typically Friday evening to Saturday evening for Jewish employees)

Overtime rates:

Key rules:

• Maximum overtime: 4 hours per day, 12 hours per week
• Total work day cannot exceed 12 hours
• Overtime must be compensated in pay, not comp time (unless a valid collective agreement allows it)
• Certain sectors and positions (managers, those requiring a high degree of personal trust) may be exempt from overtime rules under specific legal conditions
• The employer must keep accurate records of work hours

Minimum wage (Chok Schar Minimum, 1987):

• As of 1 April 2026 the minimum wage is 6,443.85 NIS per month for a full-time position and 35.40 NIS per hour
• The monthly minimum is updated every April so it is at least 47.5% of the national average wage; verify the current rate annually
• For part-time employees the hourly minimum applies and the monthly figure is pro-rated
• Paying below the minimum wage exposes the employer to criminal penalties and civil liability; the floor cannot be waived in a contract

Step 5: Birth and Parenting Period and Paternity Leave (Tkufat Leidah VeHorut)

Per the Employment of Women Law, 1954 (Chok Avdat Nashim). The leave is now officially called the Birth and Parenting Period (tkufat leidah vehorut), not "maternity leave" (chofshat leidah); the older term is still common in everyday speech.

Birth and Parenting Period (the parent who gave birth):

• Total duration: 26 weeks from the date of birth
• Paid portion: 15 weeks of birth allowance (dmei leidah) from Bituach Leumi, for employees who paid national insurance for at least 10 of the 14 months preceding the birth, or 15 of the 22 months
• Employees with less than 10 months of insurance contributions: 8 weeks paid
• The remaining weeks (11 or 18) are unpaid leave
• The employee can start leave up to 7 weeks before the due date (deducted from the 26 weeks)
• Complex-disability extension (from 1 April 2026): a parent of a child born with a complex disability recognized by Bituach Leumi is entitled to an additional 5 paid weeks. Total extension periods of the birth allowance are capped at 20 weeks combined

Job protection:

• An employer cannot fire a pregnant employee without a permit from the Ministry of Labor
• An employer cannot fire an employee for 60 days after the Birth and Parenting Period ends
• The employee is entitled to return to the same position or an equivalent one

Paternity leave / second parent (the parent who did not give birth):

• Absence right around the birth: up to 5 calendar days right after the birth (plus the day of birth itself), with no need for employer consent. The first 3 days are taken from the annual vacation balance (or unpaid if the balance is insufficient); the 4th and 5th days are treated as paid sick days
• Separately, a concurrent paternity-leave week: the second parent may take one week of the Birth and Parenting Period at the same time as the parent who gave birth, and receive a birth allowance for that week from Bituach Leumi (subject to its eligibility conditions)
• Taken together, the second parent can typically be home for about 7 paid days in the first month after the birth
• The second parent can also take a longer share of the Birth and Parenting Period (transferred from the other parent) after that parent has used at least 6 weeks

Additional protections:

• Fertility treatments: employees undergoing fertility treatments receive absences as sick days and are protected from termination during treatment
• Adoption: similar leave entitlements apply to adoptive parents
• Nursing mothers: entitled to a reduced work day (1 hour less) for 4 months after returning from maternity leave, with full pay

Step 6: Severance Pay (Pitzuyei Piturim)

Per the Severance Pay Law, 1963 (Chok Pitzuyei Piturim):

Entitlement:

• One month's salary per year of employment (or proportional for partial years)
• Applies after at least 1 year of continuous employment with the same employer
• "Month's salary" means the last monthly salary (maskoret akhronah), including all fixed components

Calculation:

Severance = Last Monthly Salary x Years of Employment

For variable components or salary changes, use:

python scripts/severance-calculator.py --help

When severance is owed:

• Employer-initiated termination (piturim)
• Employee resignation due to health, relocation for marriage, or deteriorated working conditions (in certain cases recognized by law)
• Death of the employer (individual employer)
• Employer bankruptcy

Section 14 arrangement:

• Most employers make monthly contributions to a pension or provident fund (kupat gemel) that are designated as severance pay under Section 14 of the Severance Pay Law
• Under this arrangement, the accumulated fund replaces the obligation to pay severance separately
• The standard contribution rate for severance: 8.33% of salary (equivalent to 1/12 of monthly salary)
• Upon termination, the employee receives the accumulated fund balance as severance

Key rules:

• Severance must be paid within 15 days of termination
• Late payment accrues penalty interest (pitzuyei halanat pitzuyim)
• An employee who resigns is generally not entitled to severance, except in specific circumstances

Step 7: Convalescence Pay (Dmei Havra'a)

Every employee who has completed at least one year of employment is entitled to annual convalescence pay.

Number of convalescence days by seniority:

Daily rate:

• Updated annually by the Ministry of Economy. For 2026 the rate is NIS 418 per day (private sector); public sector is NIS 471.4 per day per collective agreement. The 2025-2026 private-sector freeze window has now passed, so verify the rate again after 1 July 2026 in case it is updated
• For 2025 and 2026, employers are required to deduct one convalescence day from each employee's annual entitlement and transfer the equivalent amount to the Tax Authority to fund reservist support

Payment:

• Usually paid once a year, typically in June-September
• Appears as a separate line on the pay slip (tlush maskoret)
• Taxable income but not subject to social security deductions
• Part-time employees receive proportional pay based on their work percentage

Step 8: Pension and Savings (Pnsia)

Since the Mandatory Pension Law extension order (Tzav Harchava, 2008):

Mandatory contribution rates (as of 2026):

Key rules:

• Applies to all employees after 6 months of employment for those without prior pension coverage (contributions are then paid retroactively to day 1), or immediately if the employee already has a pension fund
• The employee chooses the pension fund (keren pensia, bituach menahalim, or kupat gemel)
• Contributions are calculated on the gross salary up to the maximum insurable salary
• An employer who fails to make pension contributions violates the law and faces penalties

Tax benefit on the employee's 6% contribution (Section 45a):

• The employee's 6% pension contribution qualifies for a 35% income-tax credit under Section 45a of the Income Tax Ordinance
• The credit is applied automatically by the payroll system on the pay slip, subject to the annual ceiling (approximately NIS 8,148 in 2026)
• The credit materially lowers the net cost of the employee's pension deduction. If a pay slip shows the full 6% deducted without a matching credit line, the employee may be entitled to a retroactive correction
• Contributions above 7% of salary do not receive the credit and become fully taxable

Step 9: Termination Procedures (Halichei Piturim)

Israeli law requires specific procedures before terminating an employee:

Notice period (hodaa mukdemet):

This is a summary. For the exact month-by-month figures for both monthly-paid and hourly/daily employees, use the detailed table in references/entitlements-calculator.md, which is the authoritative source for notice-period calculations.

Pre-termination hearing (shima):

• The employer must hold a hearing before making the final decision to terminate
• The employee must receive written notice of the hearing in advance, including the reasons being considered
• The employee has the right to bring a representative (union rep, lawyer, or colleague)
• The employer must genuinely consider the employee's arguments before deciding
• Failure to hold a proper hearing can render the termination unlawful

Protected employees:

• Pregnant women: cannot be terminated without a permit from the Ministry of Labor
• Employees on sick leave: protected during the first 90 days of accumulated sick leave
• Employees on the Birth and Parenting Period: protected during leave and for 60 days after
• Employees during military reserve duty (miluim): protected during the service and for 30 days after it ends for ordinary call-ups (service of more than 2 consecutive days). For long call-ups during the Swords of Iron period, the protected window is extended to 60 days after the service for an employee who served at least 60 days within the relevant statutory windows. Dismissal inside the protected window requires approval from the Defense Ministry employment committee (and, for days 31 to 60, the Labor Ministry oversight committee). Verify the current rule, since the temporary extensions are periodically renewed
• Employees who filed complaints (e.g., sexual harassment, safety): protected from retaliatory dismissal

Wrongful termination remedies:

• Reinstatement (hashava la'avoda)
• Compensation for damages
• Increased severance pay (up to 150% in cases of particularly egregious termination)

Step 10: Workplace Harassment (Hatrada Minit)

Per the Sexual Harassment Prevention Law, 1998 (Chok Meni'at Hatrada Minit):

Employer obligations:

• Every employer with more than 25 employees must adopt a written sexual harassment prevention policy (takanon)
• Appoint a designated officer (memune) to handle complaints
• Conduct training on harassment prevention
• Employers with fewer than 25 employees must still comply with the law but are not required to have a written policy

What constitutes sexual harassment under the law:

• Physical conduct of a sexual nature
• Repeated sexual propositions after the person has shown disinterest
• Repeated references to a person's sexuality when they have shown disinterest
• Degrading or humiliating treatment related to gender, sexuality, or sexual orientation
• Publication of intimate photographs without consent

Filing a complaint:

• Internal complaint to the designated officer (memune) at the workplace
• External complaint to the police (for criminal aspects)
• Civil lawsuit in labor court (beit din la'avoda)
• Complaint to the Equal Employment Opportunities Commission (Netzivut Shivyon Hizdamnuyot Ba'avoda)
• Statute of limitations: 3 years for civil claims, 7 years for criminal complaints

Protections:

• The complainant is protected from retaliation (cannot be fired, demoted, or have conditions worsened)
• The employer must investigate complaints within a reasonable time
• Failure to act on complaints exposes the employer to liability

Step 11: Disability Accommodations

Per the Equal Rights for People with Disabilities Law, 1998 (Chok Shivyon Zchuyot Le'anashim Im Mugbaluyot):

Employer obligations:

• Provide reasonable accommodations (hat'amot) for employees with disabilities
• Cannot discriminate in hiring, promotion, or termination based on disability
• Must ensure physical accessibility of the workplace

Reasonable accommodations include:

• Modified work hours or schedules
• Accessible workstation equipment
• Work-from-home arrangements when feasible
• Modified job duties that do not fundamentally change the role
• Additional break time as needed

Key rules:

• Applies to employers with 25+ employees (some provisions apply to smaller employers)
• The employer is not required to make accommodations that impose an "undue burden" (natel bilti savir)
• The employee should notify the employer of the need for accommodations
• Disputes can be brought before the Equal Employment Opportunities Commission or labor court

Examples

Example 1: Calculating Vacation Entitlement

User says: "I've worked at my company for 6 years. How many vacation days am I entitled to?"

Actions:

1. Look up seniority in the vacation table (Step 2): year 6 = 18 gross calendar days (14 net working days for a 5-day week)
2. Clarify the work week: in a 5-day workplace, the 14 net figure is what the employee actually schedules off
3. Note any applicable collective agreement that may provide more days
4. Advise on accumulated unused days from prior years (carry-forward permitted with employer consent over the next two years)

Result: Employee is entitled to 14 actual working days of vacation per year (or 18 calendar days including weekends) with possible carry-forward of unused balances.

Example 2: Severance Pay After Termination

User says: "I was fired after 3 years and 4 months. My last salary was 15,000 NIS. How much severance should I get?"

Actions:

1. Confirm employment duration: 3 years and 4 months = 3.33 years
2. Calculate severance: python scripts/severance-calculator.py --salary 15000 --years 3 --months 4
3. Check if Section 14 arrangement applies (most common in tech)
4. Advise on the 15-day payment deadline and penalty interest for late payment
5. Verify a proper hearing (shima) was held before termination

Result: Severance of approximately NIS 50,000 (15,000 x 3.33). If Section 14 applies, the accumulated pension/provident fund balance replaces this amount.

Example 3: Sick Leave Rights

User says: "I've been sick for a week. My employer says I only get paid from day 4. Is that correct?"

Actions:

1. Confirm sick day pay structure (Step 3): day 1 unpaid, days 2-3 at 50%, day 4+ at 100%
2. For a 7-day illness: day 1 = NIS 0, days 2-3 = 50% each, days 4-7 = 100% each
3. Verify the employee has a medical certificate
4. Check accumulated sick day balance (1.5 per month, max 90)

Result: The employer is partially correct. Day 1 is unpaid, but days 2-3 must be paid at 50% (not zero). Days 4-7 are at 100%. The employee should verify their pay slip reflects this.

Example 4: Pre-Termination Hearing

User says: "My boss told me I'm fired, effective immediately. No hearing, no notice. What are my rights?"

Actions:

1. Explain the hearing requirement (Step 9): the employer must hold a shima before deciding
2. Explain the notice period: after 1+ years, the employer must give 1 month notice
3. Advise on immediate steps: send a written demand to the employer citing the lack of hearing
4. Recommend consulting a labor lawyer or contacting the Histadrut (labor union) for assistance
5. Note that improper termination may entitle the employee to compensation beyond regular severance

Result: The termination may be unlawful. The employee should demand in writing that the employer follow proper procedure, including a hearing and notice period. If the employer refuses, the employee can file a claim in labor court.

Bundled Resources

Scripts

• scripts/severance-calculator.py -- Calculate severance pay based on salary history and tenure. Supports monthly salary, years, and months of employment. Handles Section 14 scenarios. Run: python scripts/severance-calculator.py --help

References

• references/labor-laws-summary.md -- Summary table of all key Israeli labor laws with law names, numbers, and key provisions. Consult when identifying which specific law applies to a situation.
• references/entitlements-calculator.md -- Tables for vacation days, sick days, convalescence pay by seniority. Quick-reference tables for all seniority-based entitlements. Consult when calculating specific entitlements by years of service.

Gotchas

• Israeli sick pay starts at 0% on day 1, 50% on days 2-3, and 100% from day 4. This graduated structure is unique to Israel. Agents trained on US (often no mandated sick pay) or European (typically 100% from day 1) norms will give incorrect payment information.
• The Israeli work week standard changed to 42 hours in April 2018. Agents with older training data may still reference 43 hours or 45 hours, leading to incorrect overtime calculations.
• Vacation days under the Annual Leave Law are counted in calendar days (a 6-day basis). For the common 5-day work week, the law sets a specific "gross" to "net" mapping (e.g., 18 gross = 14 net for year 6). A blind 5/6 multiplier is not the right formula; use the mapping table in Step 2, which matches the statutory schedule.
• Severance pay must be paid within 15 days of termination, after which penalty interest (pitzuyei halanat pitzuyim) accrues automatically. Agents may cite a 30-day or "reasonable time" standard from other jurisdictions.
• The pre-termination hearing (shima) is a mandatory procedural requirement in Israel that has no exact equivalent in US at-will employment. Agents may omit this step entirely, which can render the termination unlawful regardless of the substantive grounds.

Reference Links

Recommended MCP Servers

The skill works without these MCPs using the built-in reference tables, but the citations become less specific.

Troubleshooting

Error: "Employer claims overtime exemption"

Cause: Certain positions (senior managers, positions requiring personal trust) may be exempt from overtime rules under the Hours of Work and Rest Law. Solution: Verify the employee's actual role and responsibilities. The exemption applies narrowly. Having a "manager" title alone is insufficient; the employee must have genuine managerial authority. If disputed, consult a labor attorney or the labor court.

Error: "Employer not making pension contributions"

Cause: Employer violating the mandatory pension order, common with small businesses or new employees. Solution: First, check the pay slip for pension deduction lines. If absent, send a written demand to the employer. If the employer does not comply within 30 days, file a complaint with the Ministry of Labor's enforcement division (agaf ha'akifa). The employee can also file a claim in labor court.

Error: "Severance not paid within 15 days"

Cause: Employer delay, dispute over amount, or cash flow issues. Solution: Send a formal written demand (michtav drisha) citing the Severance Pay Law and the 15-day deadline. After 15 days, penalty interest (pitzuyei halanat pitzuyim) accrues automatically. If the employer continues to withhold, file a claim in labor court for the severance amount plus penalty interest.

Error: "Employer refuses convalescence pay"

Cause: Employer unfamiliar with the obligation or claiming the employee has not completed one year. Solution: Verify that the employee has completed at least one full year of employment. Calculate the entitlement using the seniority table (Step 7) and the current daily rate. Send a written demand with the specific amounts owed. If unpaid, file a complaint with the Ministry of Labor or a claim in labor court.