Israeli Labor Laws Explained for High Holidays

As the High Holidays approach, Israeli employers face questions regarding employee rights, particularly concerning holiday pay, mandatory leave, and holiday gifts. An expert in labor law clarifies the regulations.

Employees are entitled to holiday pay, a right that cannot be waived. Jewish employees are generally entitled to nine paid holiday days annually, including Rosh Hashanah, Yom Kippur, and the first day of Sukkot. Non-Jewish employees can choose between nine official holidays of their religion or the nine Jewish holidays. If a holiday falls on a Saturday, no separate holiday pay is due unless specified otherwise in a contract or collective agreement. Employees who work on a holiday when required by their employer are entitled to 250% of their regular pay: 150% for the work performed plus 100% holiday pay. If an employee volunteers to work on a holiday, they receive a 150% bonus for the hours worked.

Monthly salaried employees receive their regular pay for holidays and do not have these days deducted from their vacation balance. Hourly or daily workers are entitled to paid holidays if they have at least three months of employment, worked the day before and after the holiday, and the holiday falls on a scheduled workday. Exceptions apply for approved absences like vacation or illness.

Work hours are shortened on the eve of holidays, typically to seven hours. For the eve of Yom Kippur, the workday is six hours, though employers pay for nine hours. Employers may schedule mandatory concentrated leave during Chol HaMoed (intermediate days of festivals) or bridge days, provided at least two weeks' notice is given for leave of seven consecutive days or more. Employers cannot force employees into negative vacation balances without explicit consent; otherwise, they must pay regular wages for the closure days.

While employers are not legally obligated to provide holiday gifts, this can become a requirement through collective agreements, expansion orders in specific sectors (like security or cleaning), personal employment contracts, or a consistent past practice of giving gifts. Gifts must be distributed equally to all employees, including those on maternity leave, to avoid discrimination. Gifts, whether cash, vouchers, or tangible items, are considered income and are subject to income tax, national insurance, and health insurance deductions, though some employers absorb these costs.