ISRAEL Trends and Developments Contributed by: Dafna Shmuelevich, Eran Shoham, Zohar Geva and Ayal Erez, Dafna Shmuelevich & Co
Employment Law Emergency Crisis Adjustments: The Israeli Reality Israel has experienced an ongoing state of emergen - cy since the COVID-19 pandemic, but the real “force majeure” occurred on 7 October 2023. That night, the government declared an “emergency on the home front” and, at various stages of the war, imposed dif - ferent restrictions on workplaces. One could expect that in Israel, a country often subject to security emer - gencies, such a declaration would be accompanied by a clear regulation of employment law adaptations. However, this was not the case. Employers were compelled to address the situation by reaching temporary arrangements with their employ - ees within the emergency limits imposed. It was only after a month that the government took various meas - ures, some with retrospective effect, to establish legal arrangements governing employment relationships. First stage: declaration of “emergency on the home front” and immediate governmental emergency orders – practical vacuum at the workplace At the initial stage, the Minister of Defence declares an “emergency on the home front”. This declaration carries several implications: • restrictions on gatherings, including in workplaces (excluding “essential workplaces”); • an obligation for employees in essential workplac - es to attend work; • partial or full closure of the education system; and • additional measures. At this point, the parties to the employment relation - ship face uncertainty across a range of issues: • the possibility of continued workplace activity; • the employee’s obligation to attend work; • the employee’s entitlement to wages in workplaces where work cannot be performed; and • the employer’s ability to continue operations through remote work, etc. At this stage, before the Knesset (the parliament) has legislated special regulations on employment law dur - ing the emergency period, the employer is required,
within the scope of their managerial prerogative, to implement necessary adjustments in the workplace and to formulate temporary arrangements with employees regarding working conditions, subject to future regulation by the state. This has been the main challenge that employers in Israel have faced on multiple occasions in recent years. The guiding principle is the approximate fulfil - ment of the employment contract, in light of the cir - cumstances and the options available to the parties. Second stage: temporary emergency legislation Alongside governmental emergency orders, Israel adopted Emergency Temporary Legislation enacted by the Knesset, which is in effect for a limited duration and designed to reinforce existing legal changes and strengthen their legitimacy. For instance, the Emergency Protection of Employ - ees Act (Swords of Iron – Temporary Provision), 2023, provided statutory safeguards against dismissal for employees affected by evacuations, childcare dis - ruptions, or military reserve duty. Additional laws extended deadlines and broadened access to social benefits, such as unemployment payments. This legislative track complements emergency regula - tions by maintaining parliamentary involvement and ensuring the state’s accountability during times of national duress. Third stage: extension orders: consensus-based framework Extension Orders stem from general collective agree - ments between the Israeli employees’ union and employers’ associations. Once ratified by the Minis - ter of Labour, some sections of these agreements are extended across sectors. During the war in Gaza, Extension Orders provided: • wage compensation for employees displaced due to security-related evacuations; • protection from dismissal and changes in terms of employment for reservists; • support for reservists’ families affected by work - place disruptions; and
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