Employment
Protective statutes enforced by a dedicated Labour Court system
Employment rights derive from mandatory statutes including the Hours of Work and Rest Law, the Annual Leave Law and the Severance Pay Law, which cannot be contracted out of. A separate Labour Court system with regional courts and a National Labour Court has exclusive jurisdiction.
Key rules
- Jurisdiction — The State of Israel, through five regional Labour Courts and the National Labour Court in Jerusalem.
- Deadline — Severance pay entitlement arises after one year of continuous employment, at one month's salary per year
- Deadline — Claims for unlawful dismissal are generally subject to the seven-year prescription period, but reinstatement claims should be brought promptly
Governing law
- Severance Pay Law 5723-1963
- Hours of Work and Rest Law 5711-1951
- Annual Leave Law 5711-1951
- Labour Courts Law 5729-1969
- Advance Notice of Dismissal and Resignation Law 5761-2001
In practice
The Labour Court system is a distinctive institutional feature: it has exclusive jurisdiction over employment and social security matters, includes lay representatives of employers and employees alongside professional judges, and has generated a substantial body of protective jurisprudence. Statutory rights are mandatory floors. Severance pay at one month's salary per year of service is the central entitlement, now generally funded through pension arrangements under the 2008 mandatory pension extension order. Extension orders make certain collective agreement terms binding across whole sectors, which is an important source of obligation beyond statute.