Did You Know? The Upcoming Holiday Season – Time to Plan Ahead

As we approach the holiday season in Israel, we are pleased to present our Third Quarterly Update for 2025. This update offers practical, high-level guidance to help you navigate the festive period from an employment law perspective.

 Entitlement to Public Holidays in Israel:

Israel officially recognizes nine public holidays, most of which are religious in nature:

• Rosh Hashanah (the Jewish New Year) – 2 days
• Yom Kippur – 1 day
• Sukkot – 2 days
• Passover – 2 days
• Shavuot – 1 day
• Independence Day – 1 day

Did you know? Non-Jewish employees may choose to observe either these Jewish holidays or their own religious holidays (as defined by relevant government resolutions).

Did you know? Under Israeli law, monthly salaried employees are automatically entitled to paid leave on public holidays, regardless of their attendance before or after the holiday. In contrast, non-monthly employees (e.g., hourly or daily wage earners) are generally entitled to holiday pay only after completing three months of employment, and only if they were not absent without employer consent on the day before and the day after the holiday. Additionally, this entitlement applies only if the holiday does not fall on a Saturday.

Did you know? Independence Day is a general sabbatical day. It is not a religious holiday and is governed by specific legal provisions regarding work on this day.

The Upcoming Holiday Season:

Five of the nine holidays fall during the upcoming season:

• Rosh Hashanah (Sept. 23–24)
• Yom Kippur (Oct. 2)
• Sukkot (First Day) (Oct. 7)
• Simchat Torah (Oct. 14)

These are official public holidays in Israel, during which most workplaces are closed.

Did you know? By law, the eve of religious holidays is generally a regular workday, albeit shortened. However, more favourable rights may be granted through collective agreements, employment contracts, or workplace customs.

Holiday Work Restrictions and Compensation:

Holidays are treated as weekly rest days under the Hours of Work and Rest Law -1951, meaning work is generally prohibited unless the employer has obtained a special permit from the relevant ministry or if a general governmental permit applies.

Where permitted, employees working on a public holiday are generally entitled to:

• 150% of their regular hourly wage
• An alternate day off in lieu of the holiday worked (or alternatively in the case of non-monthly employees forced to work – 250% pay).

Did you know? Specific arrangements may apply in certain industries.

Did you know? Permits for holiday work are typically granted only for essential services or continuous operations. Specific permits are granted sparingly but may be approved in appropriate cases. We recommend consulting with us on this matter. We have successfully obtained such permits for clients in suitable circumstances.

Preparing for the Holiday Season – Practical Tips for Employers:

As the holiday season approaches, employers should consider the following steps to ensure smooth operations and compliance with local labour laws:

• Vacation Approval and Planning: While employees often plan extended leave during this season, vacation must be approved in accordance with company policy. Employers should prepare for increased leave requests and coordinate staffing to maintain business continuity.

• Vacation Accrual Management: If your company has policies limiting vacation accrual, this is an ideal time to remind employees to use their accumulated leave. Encouraging vacation use during the holiday period can help enforce accrual limits and avoid end-of-year forfeitures or claims that the company passively allowed excessive accrual.

• Holiday Gifts and Customs: In Israel, it is customary – and in some cases contractually required – to provide holiday gifts to employees, particularly around Passover and Rosh Hashanah. Employers should review any applicable obligations and plan accordingly.

We are happy to assist with any needs you may have, including preparing employee reminders regarding vacation usage based on vacation balances, drafting vacation policies, advising on work permits for weekly rest and holidays, and providing any other guidance you may require.

For further details, please contact us at – [email protected]

We also take this opportunity to extend our best wishes for a Shana Tova (Happy New Year). Thank you for your continued cooperation and may we all receive good news in the coming year.

The Labour & Employment Department

Herzog, Fox & Neeman