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Summary of Employee Rights & Labor Laws

All employees currently working in Israel, both Israelis and migrant employees, are entitled to all rights as follows:

Minimum Guaranteed Wage (correct as of July 2008)
For workers over the age of 18.

  • The monthly wage for an employee working a full time job (186 Hours), is NIS 3,850.00
  • The minimum wage rate per 1 hour is NIS 20.70

Terms of Payment
The employer must pay his/her employee, the monthly wage by the 9th of the following month, at the latest.

Travel Allowance
Employees who pay their own transportation to work must be reimbursed by their employers for this expense for the monthly cost of a travel card. In any case, the employer has to pay either the full cost of a travel card or the daily rate as mentioned. Under no circumstances, even in case the employee has not arrive to work every day, can the employer pay only a part of the travel card cost.

Additional Working Hours
Definition

An additional working hour is every working hour over 8 hours a day, when one works 6 days a week, or every working hour over 9 hours a day, when one works 5 days a week. Additional working hours are added only to the working hours of the same day and can not compensate for missing working hours in different working days.

Payment

For the first 2 additional hours, there is an additional payment of 25% per hour. For any additional working hour, over the first 2 additional hours, there is an additional payment of 50% per hour. For working Saturdays and Holidays, there is an additional payment of 50% per hour.

Saturday Hours' Rate

Working on Saturday means working any time between Friday afternoon to Sunday morning. For any working hour completed then, the employee is entitled to an additional payment of 50% per hour.

Night Shifts

In the event that at least 2 hours of the working shift are between the hours of 22:00 p.m. to 06:00 a.m., 7 working hours will be considered a full working day, and each working hour beyond that will be considered an additional hour.

An Annual Vacation
In a 5 days working week: In the first 4 years of employment, the employee is entitled to 10 paid vacation days a year, and starting the fifth year he/she is entitled to 12 paid vacation days a year.

In a 6 days working week: In the first 4 years of employment, the employee is entitled to 12 paid vacation days a year, and starting the fifth year he/she is entitled to 14 paid vacation days a year.

Sick Pay
Once the employee has completed 3 full working months, he/she is entitled to 37.5% of his/her wage for the second and third days he/she is absent because ill, upon presenting a doctor's certificate. Starting the fourth day of sickness the employee is entitled to 75% of his/her wage. The employee is entitled to payment for 18 sick days a year, and can accumulate up to 90 days. An employer who fails to pay his/her employee sick days as mentioned is considered an employer who withholds his/her employee's wage.

Work Injury
An employee, whose injury was recognized as Work Injury, is entitled to the following payments: Injury payments in respect of the days he/she is absent from work, medical treatment expenses and disability payments. The payments are made by Social Security. Upon arrival at the hospital the employee has to report the injury as a work accident and give the details of his/her employer.

Employment Health
An employee has the right to be informed and instructed as per all health hazards to which he/she is exposed at work. Employing anymore than 25 employees obliges the employer to establish safety committees together with the employees.

Convalescence Payment (Dmei Havra'a)
Convalescence Payments are paid once the employee has completed a full working year. For the first year the employee is entitled to 5 days, for the second and third year - to 6 days, for the sixth to the tenth year - to 7 days. Convalescence Payments are made during the month of June or July.

An employee who remains at the same place of work may claim 'convalescence payments' for the whole period of his/her employment. For those employees who are no longer employed, these claims may be made only for their last two working years.

Holiday Pay
Once the employee has worked for 3 months, he/she is entitled to 9 paid religious holidays a year, in accordance with his/her religion, only if those holidays do not take place on a Saturday.

Mourning Days
Once the employee has worked for 3 months, and he/she carries out a religious mourning duty, he/she is entitled to 7 paid mourning days, in the event a close relative passed away.

Pension
Some employers take part in their employee's pension program due to a collective agreement or an extension order. A pension is preferable to managers' insurance.

Severance Pay
Any employee who has worked a full year, is entitled to a Severance Pay in the event of getting fired by his/her employer or in the event of ceasing work caused by the following: derogation of work conditions (reduction of wage, working hours) health condition, within 9 months after giving birth for taking care of the newborn, work injury, death (of the employer or the employee).

Prior Dismissal Notice
The employer must give a prior notice to his/her employee of his/her intention to dismiss him/her as follows:

Monthly employee - during his/her first year of employment, the employee is entitled to a prior notice of 1 day for each month during the first 6 months of work, and to 2.5 days for each month - as of the seventh month and altogether - up to a maximum of 3 weeks. Once the employee has completed a full year at work he/she is entitled to a prior notice of a month

Daily Employee -during his/her first year of employment - 1 day for each month. Once he/she completed a full year at work, the employee is entitled to 2 weeks. During his/her second year of employment, the employee is entitled to 2 weeks plus an extra day for each 2 working months during that year. During his/her third year of employment and from then on - the employee is entitled to 1 month.

Prior notice on Quitting
An employee wishing to leave his/her place of work must give his employer a similar prior notice as described above.

Prior Notice Pay
In the event of the employer failing to give prior notice, the employee is entitled to a wage equal to the wage he/she would have gotten for the period of the prior notice which was not given.which was not given.

In the event of the employee not giving a prior notice, the employer may deduct from his wage, an amount equal to the period of prior notice which was not given.

Written approval
The employer must hand his/her employee a written approval which must contain both the date of commencement of work and of its termination. The approval must be given to the employee 15 days after the last day of work, at the latest. In case the employer refuses to give the approval, the employee can apply to the labor office. Refusal to give that approval is a criminal felony for which one may be fined.

Action Prescription
Claims to labor court may be made up to 7 years from the employment cease date.

Compensation for Wage Withholding
The compensation can be claimed up to 1 year from the time the wage was withheld by the employee. The wage itself can be claimed up to 7 years from the employment cease date.

Holiday Redemption
Can be claimed after the termination of the employee-employer relations and only on the account of the 3 last working years.

Useful Information
An employee, who works by the hour, is entitled to the same rights as any other employee. Payments due to him/her are calculated by the scope of the job. All rights as detailed are the minimal rights by law and extension orders. It is possible, of course, to demand better conditions such as higher wage, and allocation made by the employer to a pension fund.

A pension program is preferable to a provident fund or to a managers' insurance. It is recommended to photocopy the hours card each month and keep the photocopy. In case there isn't any card, or when it is impossible to photocopy the card, it is recommended to keep record of the working hours, for any case of controversy concerning the working hours. The employer must provide the employee written details concerning the wage and working hours, 30 days after the beginning of work, at the latest.It is forbidden to dismiss an employee who sued his employer for the wage withheld by his/her employer, or for compensation for withholding wage.

Selected links from the Ministry of Industry, Trade and Labor website
 
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