War and the Workplace – A proposed outline regarding unpaid leave, and updates regarding private and public sector employees

Following up on the updates we sent out over the course of combat with Iran regarding the impact of that fighting on workplaces, we would like to inform you that a memorandum of law has been published that is intended, should it should proceed through legislation, to allow the payment of unemployment benefits to workers who were absent from work due to the Home Front Command’s directives prohibiting workplace activity.

This memorandum of law establishes a series of dispensations relating to receipt of unemployment benefits for the period between Friday, June 13, 2025 and Tuesday, June 24, 2025, during which the restrictions on workplace activity applied:

• Unemployment benefits will be paid for this period to employees who have been placed on unpaid leave for 12 days (instead of the minimum period of 30 days prescribed by law). Taking into account that during this period there was a period of time in which the restrictions set by the Home Front Command were eased, working one day during this period will not affect the employee’s entitlement to unemployment benefits.
• The qualifying period for eligibility for unemployment benefits will be six months for which National Insurance contributions were paid within the 18 months preceding the date of payment (in place of the 12-month eligibility period prescribed by law).
• The usual deduction of payment for the first five days of unemployment paid to the employee will not apply.
• Unemployment benefits will be paid even if the employee is entitled to vacation pay, and he will not have to utilize vacation days as a condition for eligibility for unemployment benefits.

In addition, the Memorandum of Law stipulates that the period of unpaid leave will not be included in the 60-day total after maternity and maternity leave during which employees are protected; and that placing employees on unpaid leave will not be considered a harm that requires a permit under the Women’s Employment Law, 5714-1954.

The Memorandum of Law also includes provisions regarding the payment of a special grant to employees aged 67 and over who have been placed on unpaid leave and are not entitled to unemployment benefits.

Bear in mind: As the legislative process will not be completed before the preparation of salaries for June 2025, it is especially important to ensure accurate documentation regarding the absence of employees during the period of the fighting.

After the legislative process concludes, the National Insurance Institute is expected to publish detailed instructions regarding how to apply for payment for this period of absence from work.

Employers who require clarification regarding payment options for employees who ‘קre absent from work are invited to seek personal advice.

Public sector employers please note: In accordance with the understandings reached between the Ministry of Finance and the Histadrut, a collective agreement regarding payment to public sector employees who were absent from work during the fighting is expected to be signed in the coming days. Employers in the public sector who require assistance and clarification regarding this are invited to seek personal advice.

In addition, we would like to update you that the government is advancing a draft amendment to the Law for the Protection of Workers in Times of Emergency, under which an employee who is evacuated from his home due to war damage caused during combat with Iran will be protected from dismissal for a period of three months from the date of the evacuation.

We are also happy to inform you that, after the conclusion of the Iran campaign, as of June 25, 2025 Israeli skies have re-opened, and it is now possible to travel to Israel without restrictions. A number of foreign airlines have already resumed flights to Israel, and it is expected that additional airlines will also resume their flights to Israel.

We will continue to keep you updated on various developments and implications related to the workplace.

Labor Law Department

Herzog Fox & Neeman