How do Companies hire Employees in Israel?
Once staff have been sourced, interviewed and selected, foreign companies expanding into Israel must onboard their new employees by registering them with the Income Tax Ordinance authority and the Social Security Authority for remitting contributions to the National Insurance Institute.
When hiring employees, other factors need to be considered, including:
• Oral contracts are legally binding and do not have to be written, except in the case of foreign workers. Under the Foreign Employees’ Law their contracts must be in writing, in a language they understand
• Employment contracts are not enforceable if they do not meet statutory minimums
• New employees can request a written contract; existing employees on verbal agreements can request written confirmation of changes in their work practices
• Oral or written agreements should cover location and responsibilities, entitlements and working conditions, disciplinary procedures, termination and severance payments
• A contract should be presented or agreed within 30 days of starting work. Employees on an oral contract must be given a written ‘notification’ of the essential points in this period
• Employers should check prospective new employees are not restricted by a ‘non-compete’ clause with their previous employer
• Members of employee labor organizations and collective bargaining agreements are likely to receive more protection
Types of Israeli Employment Contracts
The most typical contracts are:
• Open-ended or indeterminate, not tied to completing a specific task
• Fixed-term are for specific timescale or until a designated task is completed, often used for freelance or seasonal workers
Workers on open-ended contracts must have a minimum two weeks’ notice of termination, while salaried staff are due four weeks. Employees must give a minimum two weeks’ notice.
During probationary periods, workers are considered full employees.
What Israeli Employment Laws are there?
Israel’s legal structure is based on a selection of basic laws and statutory regulations, as the nation has no formal written constitution. Laws apply to all employers and employees, Israeli or foreign, allowing for collective agreements or labor union agreements, which cannot ignore minimum rights or entitlements. Employees cannot waive their right to statutory minimums.
• Employee contracts need not be in writing, except for foreign workers. Within 30 days of entering into an oral agreement employers must provide a written ‘notification’ of essential elements such as start date, salary, working hours and job requirements. It is recommended both parties sign the notification
Other laws governed by various statutes include:
• Minimum wage of ILS5,300 ($1,620)
• Paid sick leave allowance of one-and-a-half days up to a 90-day annual maximum
• Working hours limited to 42 per week
• Protection from discrimination based on gender, sexual orientation, race or nationality, religious beliefs and political views
• Paid holidays of a minimum 12-14 days, increasing annually to 21-24 days
• Maternity allowance based on income and social security payments and maternity leave is for 26 weeks
• Both parties must give notice of dismissal or resignation with severance governed by salary and seniority
Sign up for success!
Companies expanding into Israel need a total grasp of employment and contract laws, including the complications of dealing in Hebrew. Bring Bradford Jacobs’ expertise into the equation and add our comprehensive understanding of Israel’s rules and regulations. The global reach of our Professional Employer Organization (PEO) specialists is matched by in-country Employer of Record (EOR) platforms that ensure a smooth entry into the Israeli economy.
How do you Onboard Employees in Israel Internationally?
The most efficient and cost-effective method of onboarding employees into Israel is through a global recruitment company such as Bradford Jacobs.
Transferring existing staff from abroad requires compliance with strict and protracted procedures to obtain visas and work permits. Making mistakes risks sanctions and wasting time and money. Sourcing and recruiting staff in Israel takes a detailed knowledge of this highly-competitive employment market – Bradford Jacobs have the knowledge to build this preferred route for your expansion into Israel.
Our Professional Employer Organization (PEO) and Employer of Record (EOR) solutions manage every stage of the process from finding the employee to seeing their first check is paid on time. The result? Your new employees are quickly operational as part of a team making their mark in your new territory.
Tick all the boxes
Bradford Jacobs’ recruitment specialists will guide you and your employees through every step of onboarding into the Israeli economy. From talent acquisition, to the complexities of employment legislation, payroll and tax, Bradford Jacobs tick all the compliance boxes. In addition, our human resources consultants will see your employee blends with workplace culture and etiquette to quickly become productive – and happy.
Translating Israeli Employment Contracts
Legally, contracts can be in any language provided they can be understood by the recipient. With oral agreements, employers must supply a written notification of basic terms in a language that is understood by the employee. If a contract is not translated into a mutually-understood language, it could be considered void legally. It is advisable to have notarized contracts that are translated from Hebrew.
Don’t take the risks – contact Bradford Jacobs now
Bradford Jacobs will ensure you comply with Israel’s contract laws relating to contracts, salary, payroll, benefits and allowances, termination and severance, entitlements, tax and social security.