Unpaid Leave for Employees Absent from Work During the War with Iran

Further to our update on July 2, 2025, regarding the memorandum of law outlining potential unemployment benefits for employees absent from work due to the Home Front Command’s directives during the war with Iran, we wish to inform you that the legislative process has now been completed.

On July 21, 2025, the proposed outline was formally approved. Under the approved outline, eligibility for unemployment benefits is contingent upon the employee having been on unpaid leave for at least ten out of the twelve days of the war (between June 13^th and June 24^th 2025). In addition, several special provisions have been introduced to ease eligibility requirements for employees who were absent from work during this period:

• The qualifying period for eligibility for unemployment benefits has been reduced to six months of National Insurance contributions within the 18 months preceding the claim date (instead of the standard 12-month period prescribed by law). A further shortened qualifying period applies to individuals with disabilities, evacuees and reservists.

• Unemployment benefits will be paid starting from the first day of unpaid leave. Additionally, the usual five-day waiting period will not be deducted from the benefit entitlement.

• Eligibility for unemployment benefits is not contingent upon the employee first using their accrued paid vacation days.

• The period of unpaid leave will not be counted towards the 60-day protection period granted to employees following parental leave. Furthermore, placing employees on unpaid leave under these circumstances will not be considered an action requiring a permit under the Employment of Women Law, 1954.

Employees aged 67 and over who have been placed on unpaid leave will be entitled to a grant of up to NIS 134 per day.

Please note: To exercise this entitlement, employees must submit an application for unemployment benefits on the National Insurance Institute website and register on the Employment Service website. Employers must report to the National Insurance Institute the period during which the employee was absent from work, which will be considered unpaid leave for the purpose of determining eligibility for unemployment benefits.

Employers requiring assistance with the implementation of this framework are invited to contact us for individual guidance.

Labour and Employment Law Department

Herzog Fox Neeman