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Israel

How to Hire Workers in Israel | Employer of Record (EOR) in Israel

Expand your business into Israel with confidence using our Employer of Record (EOR) services. We handle all aspects of local employment, including payroll, benefits, and compliance with Israeli labor laws. Our personalized approach ensures that your business operations in Israel run smoothly, giving you peace of mind as you grow your presence in this dynamic market.

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Israel, known for its innovation, entrepreneurial spirit, and technological advancement, offers great opportunities for businesses looking to expand internationally. TCWGlobal simplifies the process of hiring in Israel, offering comprehensive solutions for building your contingent workforce.

With a population of over 9.3 million people, Israel boasts a highly skilled and educated workforce. From the vibrant streets of Tel Aviv to the historic sites of Jerusalem, the country offers a unique blend of culture and innovation.

When expanding your business into Israel, compliance with local regulations is essential. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, reducing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services and benefits for your contingent workforce. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is committed to meeting your needs.

By partnering with TCWGlobal, you can confidently expand your business into Israel, knowing that your contingent workforce is in capable hands. Our expertise and comprehensive solutions make us the ideal partner for businesses seeking to establish a presence in this dynamic market.
Worker Classifications

Workers are classified as exempt or non-exempt from overtime depending upon their category. Very few employees qualify as exempt.

Fixed-Term Contracts

Fixed-term contracts are permitted in Israel. If they are terminated before the end of the fixed-term, the Worker may be entitled to their salary for the remainder of the term.

Probationary Periods

Probationary periods are permitted in Israel and are generally between one and twelve months. During the probationary period, statutory written notice is still required to terminate. The required notice for monthly-paid Workers is one day for each month during the first six months and two-and-a-half days for every additional month. During a probationary period, the reasons for termination are assessed more leniently.

Holidays

In Israel, Workers recognize 9 public holidays. Workers are entitled to 250% of their salary if required to work on a public holiday. In addition, Workers must not be required to work more than 7 hours on the eve before a public holiday.

Vacation

Workers are entitled to a minimum of 12 days’ vacation per year for the first five years of employment (increasing thereafter), which accrues each month. At least 7 of the days must be taken each year and, at the employer’s consent, the remainder can carry over for use over the subsequent two years of employment. Accrued but unused leave is payable at termination.

Sick Leave

Workers accrue at least 1.5 days of paid sick leave per month, totaling at least 18 days per year. Sick leave may be used for oneself or a family member. The first day of illness is unpaid. The second day is paid at 50% of the regular salary. Any remaining days of illness are paid at 100% of the regular salary.

Working Hours

A typical workweek in Israel is from Sunday to Thursday, 8.6 hours per day for four days and 7.6 hours per day on one day. The law mandates that Workers be provided at least 8 hours of rest between workdays and 36 consecutive hours of rest between workweeks. Jewish Workers must be allowed Saturday among their weekly days of rest. All other Workers may select from Friday, Saturday, or Sunday as their rest days.

Overtime

Overtime over the regular daily hours noted above or 42 hours per week is considered overtime. Workers cannot be required to work more than 12 hours per day and/or 16 hours of overtime per week. The first two hours of overtime must be paid at 125% of salary and the remainder at 150%. The following categories of Workers are exempt from overtime: managers, those whose duties require a special fiduciary relationship, and those whose hours cannot be supervised.

Mandatory Bonuses

Convalescence Pay is required once a year and generally paid in July or August. The amount owed depends on the Worker's length of service; 0 - 1 year: 5 days' pay; 2 - 3 years: 6 days pay; 4 - 10 years: 7 days' pay; 11 - 15 years: 8 days' pay.

Termination

A termination is only lawful with (a) 30 days’ notice or pay in lieu of notice (unless the Worker was employed for less than one year) as well as (b) a meeting with the Worker to allow them to air any grievances. Some groups of Workers are protected from dismissal for any reason. Those groups include pregnant women, women within the first 60 days of work after maternity leave, women staying in shelters for abused women, men who have been called up for military service, Workers on sick leave, Workers undergoing infertility treatment, and bereaved families. The only way to terminate a Worker when dismissal is forbidden is to obtain a permit from the government. Lawfully terminated Workers who have been employed for longer than one year are entitled to severance pay equal to at least one month’s salary for each year of severance.

Resignation

Workers are required to give 30 days' notice of resignation.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.