Employment 2025

ISRAEL Law and Practice Contributed by: Tal Keret, Shira Lahat, Neta Goshen Brami, Shira Cohen-Mazor and Shirly Mahlab Hefetz, Arnon, Tadmor-Levy

3. Data Privacy 3.1 Data Privacy Law and Employment In Israel, data privacy in the employment context is primarily governed by the Protection of Privacy Law, 1981 (the “Privacy Law”), along with regulations and guidelines issued by the Israeli Privacy Protection Authority (PPA). These laws and guidelines set out the framework for the collection, use, storage, and transfer of personal data, including data relating to employees. The Privacy Law defines “personal information” broadly, covering any data that can identify an indi - vidual, including employees. This includes names, identification numbers, contact details, health infor - mation, and more. Employers must collect and pro - cess employee data only for legitimate, specific, and clearly defined purposes related to the employment relationship (such as payroll, benefits administration, and compliance with legal obligations). Employees must be informed about the collection and use of their personal data, including the purposes for which it is collected, how it will be used, and with whom it may be shared. In certain cases, especially where sensitive data is involved or data is transferred to third parties, explicit consent from the employee may be required. Employers are required to implement appropriate technical and organisational measures to protect employee data against unauthorised access, loss, or misuse. The Privacy Protection (Data Security) Regu - lations, 2017, set out detailed requirements for data security, including access controls, encryption, and incident response procedures. Employees have the right to access their personal data held by the employer, request corrections, and, in some cases, request the deletion of data that is no longer necessary for the employer’s legitimate pur - poses. The transfer of employee data outside of Israel is sub - ject to restrictions. Employers must ensure that the receiving country provides an adequate level of data

• Balance of interests: courts will weigh the employ - er’s need for protection against the employee’s right to work. If the restriction is found to be excessive or unnecessary, it will not be enforced. The size and strength of the employer will also be considered. Enforcement The burden of proof is on the employer. If the clause is found to be too broad or not justified by a legitimate interest, the court might change it and make it smaller or invalidate it. 2.2 Non-Solicits All types of non-solicitation clauses must be narrow - ly tailored to protect legitimate business interests. Overly broad or indefinite restrictions are unlikely to be enforced. The courts will balance the employer’s need for protection against the employee’s right to pursue employment and business opportunities. • Non-solicitation of employees: non-solicitation clauses that prevent former employees from soliciting or recruiting current employees are generally more acceptable under Israeli law than non-compete clauses. However, they must still be reasonable in scope and duration. The courts will consider whether the restriction is necessary to protect the employer’s legitimate interests, such as maintaining a stable workforce or protecting confi - dential information. It should be noted that it is very difficult to enforce such clauses in practice. • Non-solicitation of customers: clauses that prohibit former employees from soliciting the employer’s customers are also subject to scrutiny. The enforceability depends on whether the employee had significant contact with the customers and whether the restriction is necessary to protect the employer’s legitimate interest or confidential infor - mation. As with non-competes, the restriction must be reasonable in terms of time, geography, and the nature of the prohibited activity.

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