Israel: A Guide to Prevent Collapse During Coronavirus

Erez Greenberg March 19, 2020

We have gathered information on what measures you can take as an employer in Israel to help preserve your employees while keeping your business intact. As more information comes in, we will update this post.

If you have any questions on the impact of Coronavirus on labor laws, visit our Linkedin AMA post and leave us your questions in the comment section and we will reply.

 

[AMA] Impact of Coronavirus on Labor Laws

Updated: March 19, 2020

Unpaid Leave

Employees who are Israeli citizens/visa holders, and who have been put on unpaid leave for more than 30 days, are entitled to receive unemployment pay from the government. This is applicable for all employees who have been employed for at least 12 months within the last 18 months.

This payment can be received even if employees have not exhausted their vacation days.

The amount received will be between 31% to 80% of the employees average monthly salary over the last 6 months and the amount will vary depending on the age and income of the employee.

In order to receive this benefit, Employees need to register online for unemployment with (1) National Insurance Institute of Israel, and (2) Employment Service. Both can be registered online.

Employees can also contact a support by contacting the National Call Centre on *6050 or 048812345.

Dismissed Employees

Employees who have been terminated from their work can register for unemployment according to the normal process and should register with the Employment Service online.

Reduced Working Hours

Employers can decide to reduce the number of hours an employee works but it must be agreed on by the employee.

Employees should be made aware that agreeing to the reduction in working hours can affect their rights later on, for example, entitlement to Pension and unemployment benefits.

If the employee does not agree to the reduction the employee can resign and then register for unemployment.

If an Employer wants to reduce the working hours for pregnant women, a woman on maternity leave, a parent going through surrogacy, or an employee going through adoption, they must first obtain approval from the Supervisor of the Women Labor Act in the Ministry of Labor. Once approved, the employer must obtain the employees agreement to the reduced hours set up. If the employee does not agree, they can resign and register for unemployment.

Reduced Salary with No Decrease in Working Time

If an Employer wants to reduce an employee’s salary but keep their working hours the same, they must have this change agreed upon by the employee. If the employee does not agree to the reduction, the employee can resign and then register for unemployment immediately.

If an Employer wants to reduce the pay but maintain the working hours for pregnant women, a woman on maternity leave, a parent going through surrogacy, or an employee going through adoption, they must first obtain approval from the Supervisor of the Women Labor Act in the Ministry of Labor. Once approved, the employer must obtain the employees agreement to the reduced pay set up. If the employee does not agree they can resign and register for unemployment.

For more details see our payroll & benefits guide to Israel