Compensation Framework for “Operation Roaring Lion”

We would like to bring to your attention that on May 4, 2026, the Economic Assistance Program Law (Temporary Provision) (Support for Businesses and Public Institutions), 5786–2026 (the “Law”) was published. The purpose of the Law is to provide relief to businesses and public institutions throughout Israel that have suffered indirect damages as a result […]
Asi Messing, former General Counsel of the Ministry of Finance, is joining Herzog

We are very pleased to share that Adv. Asi Messing, former General Counsel of the Ministry of Finance, is joining Herzog as a partner and Head of the Public Economic Law practice. Asi will significantly strengthen of the firm’s activity in the field of Economic Public Law, combining his deep regulatory expertise with a broad strategic […]
New Legislation Concerning Reservists and Employer Reimbursement as well as Recent Case Law Developments

In recent days, a legislative amendment and an Extension Order have entered into force, which for the first time establish a permanent arrangement regarding the rights of male and female reservists and their spouses, as well as regarding the reimbursement of employers in respect of the continued payment of social benefits during reserve service. These […]
Unlocking Carbon Market Demand: How Safe Harbors Can Protect Corporations from Greenwashing Risk

We are pleased to share a comprehensive legal report released by Herzog’s Environment and Climate Change practice, titled “Unlocking Demand in Carbon Markets through Safe Harbors for Corporate Green Claims.” As global corporations face a surge in greenwashing litigation, our report provides a strategic roadmap for navigating the legal uncertainties currently stifling the Voluntary Carbon […]
The Israel Competition Authority Publishes Stringent New Draft Merger Guidelines for Public Comments

A Material Tightening of Israeli Merger Control, with Distinct Echoes of the U.S. 2023 Guidelines On April 26, 2026, the Israel Competition Authority (the “Authority”) released for public comments a draft of comprehensive new guidelines on the substantive review of mergers (the “Draft Guidelines”). The Draft Guidelines are intended to replace Opinion 1/11, and they […]
Publication of Draft Bill: ‘Foreign Trade Regulation Law – Control of Civilian Dual-Use and NBC Export – 2026’

We wish to inform you that the Ministry of Economy and Industry has recently published a Draft Bill titled “Foreign Trade Regulation Law – Control of Civilian Dual-Use and NBC Export – 2026”, as part of a legislative initiative to establish a primary statutory framework governing civil dual‑use export controls in Israel, including control of […]
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 […]
New Tax Incentives for New Immigrants and Veteran Returning Residents to Israel

On March 30, 2026, the Israeli Parliament (the Knesset) approved new legislation granting a significant income tax exemption to new immigrants and veteran returning residents on income derived from personal services performed in Israel (the “New Law”). The New Law also provides a tax exemption to foreign companies with respect to income generated in Israel […]
Springtime Update: Navigating Between Emergency and Routine

As emergency measures and evolving security developments continue to influence workplaces, this update provides an overview of the key legislative processes and regulatory guidelines arising from the current emergency framework, together with ongoing updates on matters that affect employers and workplaces. As of the date of this update, the state of emergency declared in Israel […]
An amendment to the Law on Extension of Periods and Postponement of Deadlines

We would like to inform you that, due to the state of emergency in which the State of Israel currently finds itself following Operation “Roaring Lion”, an amendment to the Law on Extension of Periods and Postponement of Deadlines (Temporary Provision – Swords of Iron) (Regulatory Approvals, Financial Sanctions, and Gas Facility Inspections), 2023 (the […]
First Court Ruling on Taxation of “Deferred Compensation”

On March 11, 2026, the Tel Aviv District Court (Hon. Judge Magen Altuvia) issued a judgment in several appeals filed by companies in the SAP group, represented by our firm, concerning withholding tax assessments for tax years 2016–2018, relating to the companies’ deferred compensation arrangements with their employees. The court ruled that employer’s deposits to […]
Operation “Roar of the Lion” – Compensation Update

We wish to inform you that on March 19, 2026, a governmental bill memorandum was published, aimed at establishing a compensation mechanism for businesses that suffered economic damages as a result of Operation “Roaring Lion”, which began on February 28, 2026, leading to the declaration of a nationwide special home front emergency situation. Please note […]
Operation Lion’s Roar – Latest Updates and Q&A

In light of the rapidly changing circumstances associated with the state of emergency declared for Operation Lion’s Roar, it is critical to remain informed of the latest applicable directives. As always, we will continue to keep you informed of developments, and we invite you all to follow our updates. Update Bulletin: In accordance with […]
Operation Roaring Lion – Hostilities and the Workplace – Update

Following the military confrontation with Iran, and the declaration of a special state of emergency throughout the country, as of Saturday, 28 February 2026 (at this stage until March 12), workplace activity is prohibited, except in workplaces classified as essential services. An essential service is defined as an essential enterprise under the Emergency Labor Service […]
Case Law Regarding Global Overtime Payments to Hourly Employees; and a Look at Whether Football is Still Played from Saturday to Saturday?

We are pleased to present to you an update in the field of labour law, which includes a concise overview of legislative updates and key court rulings issued in the past month. The update highlights prominent trends in case law and legislation and draws attention to developments that may be relevant to the management of […]
Draft Directive for Payment Companies Regarding the Implementation of an Open Banking Standard – Published for Public Comments

We wish to bring to your attention that on January 27, 2026, the Israel Securities Authority (the “Authority”) published for public comments a Draft Directive for Payment Companies Regarding the Implementation of an Open Banking Standard (the “Draft Directive”). The purpose of the Draft Directive is to regulate the activities of payment companies in connection […]
Draft Bill on the Application of Laws to a Foreign Dealer Directing its Activity Toward Customers in Israel, 5786-2026

On January 27, 2026, the Israeli Ministry of Justice published for public comments a draft bill titled Application of Laws to a Foreign Dealer Directing Activity Toward Customers in Israel, 5786-2026 (the “Draft Bill”). The Draft Bill seeks to prescribe the application of certain mandatory Israeli laws to foreign dealers operating vis-à-vis customers in Israel, […]
Cybersecurity and AI Convergence: Legal, Transactional, and Valuation Implications for 2026

Cybersecurity is undergoing a structural transition driven by generative AI, autonomous agents, and the proliferation of machine identities. While the narrative is often framed as technological, the most durable impact is legal and transactional. AI materially alters diligence scope, valuation logic, representations and warranties, risk allocation, and post-closing liability. This memo analyzes how the convergence […]
Use of Medical Cannabis in the Workplace

Medical cannabis use in Israel is permitted only when used with a valid license or prescription, in accordance with the Dangerous Drugs Ordinance [New Version], 5733—1973 and its implementing regulations, and only for medical indications approved and published by the Israeli Ministry of Health. Over the past several years, there has been a significant increase […]
Israel District Court Affirms: AI Systems Cannot Be Recognized as Inventors under Patent Law (Thaler v. Commissioner of Patents)

The Tel Aviv District Court recently issued a noteworthy ruling in 33353-05-23 Thaler v. Commissioner of Patents (31 December 2025), affirming that an artificial intelligence (AI) system cannot be registered as an inventor under Israeli law. The decision upholds the Patent Commissioner’s previous refusal to register patent applications naming an AI system as the sole […]
Equity Plan Tax Rulings – Important Update

Four tax rulings previously required with respect to equity incentive plans are no longer needed! We are pleased to update that the Israel Tax Authority distributed an update according to which companies do not need to seek specific tax rulings with respect to the following issues connected to employee equity plans: Non trustee ESPP Trustee […]
Overview of VAT and Customs Updates Effective in 2026

We are pleased to bring to your attention a number of updates in the fields of VAT and customs, effective as of the beginning of 2026: 1. Publication of Reportable Positions for the 2025 Tax Year, Including Two New VAT Positions The Israel Tax Authority has published the reportable positions for the 2025 tax year, […]
ISA Permits Global Research on TASE listed Securities

On December 17, 2025, the Israel Securities Authority (the “ISA“) published a pre-ruling (the “Pre-Ruling“) which addresses the preparation and distribution of research which covers companies listed on the Tel Aviv Stock Exchange (“TASE“). As a general rule, the provision of “research papers” requires a license under the Israeli Investment Advice Law, and research providers […]
Labour Law Year in Review 2025 – Looking Ahead to 2026
In 2025, Israel’s labour law landscape continued to undergo significant changes, reflecting deep trends related to technology, the ongoing security situation and its implications, strengthened labour market regulation, and more. Alongside extensive case law and new legislative initiatives, employers are increasingly required to manage their relationships with employees in a controlled, legally compliant, and transparent […]
New U.S. Reporting Requirements for Insiders of Foreign Private Issuers

Introduction A significant change in U.S. securities law is approaching that will fundamentally impact the reporting obligations of directors and officers of Foreign Private Issuers (FPIs). Going forward, directors and officers will be required to report within 48 hours to the SEC transactions in the issuer’s securities. Previously, insiders of FPIs were exempt from this […]
Recent Developments in IP Case Law on Generative AI (6th Update)

In this sixth update on IP developments concerning generative AI, we highlight three pivotal developments across the UK, Germany, and the US. These cases underscore the different approaches courts are taking towards specific technical aspects of AI models – from the non-infringing nature of “model weights” in the UK to their characterization as an infringing […]
Landmark Ruling – Obligation to Engage in Discussions with Workers’ Union of Service Providers

On December 11, 2025, the National Labour Court, sitting in an expanded panel of judges, delivered a precedent-setting decision in the matter of (Collective Dispute Appeal [National] 5448-04-25, Koach La’Ovdim Democratic Workers’ Union v. State of Israel). This ruling addressed a petition by Koach La’Ovdim Workers’ Union seeking to require the State to engage in […]
Winds of Change at the Defense Export Control Agency – What You Need to Know?

The Defense Export Control Agency (DECA) has recently initiated first steps of a broad reform aimed at streamlining the control regime and adapting it to the evolving global reality. These significant changes are expected to impact, and hopefully ease, the regulatory burden on hundreds of exporters in the near future. Repeal of the Encryption […]
OECD Releases Update to the Model Tax Convention – New General Approach on Employees Working from Home and the Israeli Perspective

The OECD published on 19 November, 2025 an update to the articles and Commentaries of the Model Tax Convention on Income and on Capital (the “MTC“). In this client alert we will focus on a relatively significant overhaul of the Commentaries addressing remote workers (i.e., “work from home” jobs). As remote work became increasingly prevalent […]
Multi-Stage Reform in the Taxation of High-Tech Companies

The Ministry of Finance and the Israeli Tax Authority (ITA) announced, in a joint press conference on November 2nd 2025, a significant reform intended to support and strengthen Israel’s high-tech industry (hereinafter: the “Reform”). The Reform is expected to be phased, via regulations requiring Knesset approval and professional circulars clarifying the ITA’s positions. We will […]


