Israeli Employment Law – Did You Know? Managing your Workforce in Times of Emergency

As reality has demonstrated, crises are, unfortunately, a recurring part of the business landscape. In recent years, organizations around the world have faced numerous health, security, and other crises and challenges. Throughout these periods, workplaces have been required not only to continue operating, but also to support their employees as they navigate the challenges created by these events.

Over the years – and particularly during recent crises – we have supported many organizations through highly complex situations. We draw on this experience to help our clients prepare in advance, rather than merely react when a crisis occurs. With the right legal and organizational frameworks in place, employers can respond lawfully, protect their teams, and maintain business continuity. Unfortunately, such challenges do not always arise predictably, which is why preparation is essential.

This Client Update offers a high‑level overview of the essential labour law, compliance, and governance measures that employers should consider implementing to be better prepared for current and future challenges.

 

(A) The Importance of a Business Continuity Plan

Beyond the commercial aspects of such a plan, a business continuity plan should map out which roles and functions are key to business continuation, and which must continue to operate physically on‑site (meaning remote engagement would be insufficient).

Where necessary, the plan can also address temporary and organized relocation of essential personnel, to ensure continued and uninterrupted operations.

Did you know? During a crisis, many times the workforce permitted to physically access offices or facilities may be significantly limited under law and Home Front Command directives. It is therefore highly advisable to maintain and regularly update lists of essential personnel as advised above.

 

 

(B) The Importance of Caring for Your Team

In times of crisis, organizations naturally prioritize customer needs and business continuity. While this is understandable and necessary, our experience shows that it is equally important not to overlook the needs of your workforce. Employees are also going through the crisis, facing unique personal and professional challenges that require attention and support.

Moreover, employee satisfaction directly impacts customer service – if your workforce is not well-supported, service quality will inevitably suffer.

Did you know? During security emergencies in Israel, extensive reserve military duty may be called up, meaning many employees – or their family members – may be mobilized. This significantly affects workforce availability and can trigger statutory protections against dismissal and changes to employment terms under applicable legislation. We refer you to our useful update on reserve duty for further information on this topic.

Did you know? In times of crisis, the role of an experienced HR manager with crisis management skills is critical. No artificial intelligence can replace this essential function.

Did you know? Effective workforce management during a crisis is also a powerful tool for employee retention. After the crisis ends, employees often evaluate how their employer handled the situation when deciding whether to stay.

 

 

(C) The Importance of Understanding the Legal Framework

Employers should be familiar with the legal provisions that apply during declared emergencies. Beyond permanent legislation that employers should know, each crisis typically triggers temporary and situation-specific legislation that changes frequently. Familiarity with these provisions is important not only for managing the current crisis, but also for preparing for future ones – as experience shows that temporary measures often build on solutions developed during previous emergencies.

• Permanent Legal Framework

Under Israeli law, when a “State of Emergency” or “Special Situation on the Home Front” is declared by the government, specific legal consequences follow. Such declarations are made when there is a high likelihood of an attack on the civilian population.

Such declarations authorize the IDF (Israel Defense Forces) to exercise emergency powers (e.g., restricting gatherings) and grant ministers special authority, including over employment in essential enterprises and overtime.

Essential Enterprise Status – Certain businesses may be designated as “Essential Enterprises” under Israeli emergency legislation. Essential Enterprises are workplaces that have received a formal approval from the Ministry of Labour under the Emergency Employment Service Law, 1967.

Essential Enterprise status allows employers to continue operations and require employees to report to work during emergencies. Such employers may issue “call-up orders” (mobilization orders) to employees, who are then legally required to report; failure to comply is a criminal offense.

Did you know? While it is not possible to obtain Essential Enterprise certification during an active crisis, once the emergency concludes, qualifying businesses can apply for this status to be better prepared for future situations. We can assist with this process.

• Temporary and Crisis-Specific Provisions

Each emergency typically triggers temporary legislation, which may be updated, extended, or replaced on short notice. For example, during the recent security situations, Israeli authorities have introduced:

• Enhanced protections and entitlements for reservists and their spouses – Employees are protected from dismissal due to their absence if absent due to Home Front Command directives or to supervise children (up to age 14, or 21 for special needs) when educational institutions are closed.

On 24 March 2026, the Knesset (Israeli Parliament) extended these protections to include evacuees (protected for 3 months), employees supervising children while a spouse serves in the military, and contractor workers. These provisions apply from 28 February 2026 until six months after the emergency ends.

• Eased conditions for state unemployment benefits for unpaid leave arrangements due to the crisis – In light of the security situation and the restrictions imposed on the economy, the government enacted the Economic Assistance Plan Law (Temporary Provision – “Roaring Lion”), 2026, aimed at establishing a social safety net for employees affected by the situation, alongside certain relief measures for employers. The legislative process was completed on 30 March 2026, and the arrangements apply retroactively from 28 February 2026. The framework allows employees to be placed on unpaid leave (initiated by either the employer or the employee), during which they may be eligible for unemployment benefits from the National Insurance Institute. Key benefits: minimum qualifying leave reduced to 10 days; eligibility threshold of 6 months employment (3 months for certain populations); no 5-day waiting period; no requirement to exhaust vacation days; and a dedicated mechanism for employees aged 67+.
• Compensation for employers: Government compensation schemes for employers whose businesses have been adversely affected by the emergency situation – A bill has been advanced to establish a compensation mechanism for businesses that suffered economic damages as a result of Operation “Roaring Lion”. The bill passed its first reading in the Knesset on 25 March 2026 and remains subject to the completion of the legislative process; accordingly, its provisions may still change.

Did you know? Staying informed is critical, as business continuity depends on compliance with rapidly evolving legal requirements. Regulations can change within days or even hours during active emergencies.

Did you know? During every crisis, our department provides timely legal alerts and conducts webinars so your organization remains up to date with all relevant requirements. Our latest update can be found here.

 

 

 (D) The Importance of Having Required Policies in Place in Advance

From our experience, the following policies are particularly valuable during any crisis. We recommend ensuring these are in place before an emergency occurs:

(i) Remote Work Policy: A clear policy governing remote work arrangements, including whether employees may work from outside Israel.

Did you know? Working from outside the regular territory may have significant legal implications. Just because remote work is technically possible does not mean it is legally permissible. It is important to consider all aspects – including tax, social security, immigration, and data protection – before granting approval for cross-border remote work. We can provide further advice on this.

(ii) Employee Monitoring Policy: Under Israeli law, employers who wish to monitor employee activities while using company systems (including during remote work) must have appropriate policies and obtain necessary consents. Having this framework in place before a crisis avoids compliance issues when remote work becomes necessary.

(iii) Social Media Policy: During times of crisis, employees may be inclined to express personal opinions – including on social media platforms or on work premises – that could affect workplace and business relationships as well as company reputation. A well-drafted social media policy, compliant with Israeli law (including freedom of expression considerations and privacy rights), can help set clear expectations while respecting employee rights.

Temporary rules and flexibility – Any temporary changes to policies or employment terms during a crisis should be clearly designated as temporary and conditional. Once the crisis ends, employers should revert to standard practices to avoid unintentionally creating permanent contractual changes or establishing new workplace customs.

 

(E) The Importance of Post-Crisis Review

At the conclusion of each crisis, after taking time to recover, we recommend not resting on your laurels. Conducting lessons-learned sessions can significantly improve your organization’s preparedness for future challenges. We have all noticed how we improved from one crisis to the next. For example, prior to COVID-19, most workplaces in Israel did not have a remote work policy in place.

Key areas to review include:

• Policy Updates: Review and update existing policies or develop new ones based on lessons learned during the crisis.
• Essential Enterprise Application: If your organization qualifies but does not yet have Essential Enterprise status, consider applying during the inter-crisis period.
• Business Continuity Plan Enhancement: Refine your business continuity plan based on real-world experience from the recent crisis.
• Employee Engagement Activities: Consider organizing activities to help employees return to work with renewed energy and to strengthen team cohesion after a difficult period.

 

 

We Are Here to Support You

Our team is available to guide you through both routine operations and crisis-related challenges. We provide timely legal alerts, dedicated client webinars, and hands-on support in areas such as workforce planning, policy development, permit applications, and regulatory compliance.

Once again, the Israeli economy proves that it delivers – consistently and resiliently, even in times of crisis.

This is a wonderful opportunity to wish us all better times and a welcome return to routine.

For any questions, please do not hesitate to reach out to us at [email protected].

The Labour & Employment Department

Herzog, Fox & Neeman