At a glance
- Israel’s state of emergency has been extended until 14 April 2026, with related labour and employment measures continuing to apply.
- A new statutory framework allows employees to be placed on unpaid leave with access to unemployment benefits, with retroactive effect from 28 February 2026.
- Employees affected by evacuation, childcare due to military service, or emergency conditions are protected from dismissal for up to three months.
- Enhanced protections apply to reservists and their spouses, including dismissal restrictions and limits on adverse changes to employment terms.
- Emergency permits allowing extended overtime hours remain in force until at least 14 April 2026.
The state of emergency in Israel has been extended until 14 April 2026. Throughout the period of emergency, new regulatory arrangements and initiatives continue to pass.
Unpaid leave framework
The Economic Assistance Plan Bill was completed on 20 March 2026, with retroactive enforcement from 28 February 2026. The arrangement established a framework for placing employees on unpaid leave, allowing them to be paid unemployment benefits in return.
The first payments of the unemployment benefits are expected to be made in April.
Key takeaways include:
- Unpaid leave can be requested by either the employee or employer.
- The minimum period of unpaid leave is ten days.
- To qualify for unemployment benefits, the employee must have worked for six months within the 18 months preceding their eligibility.
- Holiday days do not need to be exhausted for unemployment benefits to be paid.
- A specific assistance mechanism is applicable to employees aged 67 and above who are not entitled to unemployment benefits.
- The law also includes specific amendments to the Employment of Women Law, including, that the period of unpaid leave will not count toward the 60‑day protected period following maternity or parental leave.
Employee protection
Employees who are absent from work, or unable to perform their work due to being evacuated from their homes as a result of war, will be protected from dismissal for three months.
A similar protection applies to employees absent for the purpose of supervising their child when the other parent is serving in military service or other statutory service.
Contract workers are also covered by the protections.
This protection arises from the Protection of Employees in a State of Emergency Bill 2026, which was approved on second and third readings on 24 March. It is applicable from 28 February to six months following the end of the state of emergency.
Rights of reservists and their spouses, and employer reimbursement
As part of a 'package deal' between employer organisations and employee unions, a collective agreement on reservists and their spouses was signed on 23 February 2026 and is intended to be extended by an extension order (announced but not yet published as of this update).
Separately, draft regulations provide for reimbursing private-sector employers (20% of salary) for continued social-benefit contributions during reserve duty (applying 1 January–31 March 2026), with reimbursements expected within 60 days of publication.
Key points:
- Termination and unpaid leave restrictions apply for reservists with 60+ cumulative reserve-duty days in the calendar year (including at least seven consecutive days), including a 60-day protected period post-service; a permit is required for termination / unpaid leave during service or the protected period.
- Employment terms must not be worsened (including reassignment or changes to duties), including during the 30 days following the 30-day post-service period.
Overtime work permits
The general permit allowing work up to 14 hours per day and 67 hours per week, with a monthly overtime cap of 90 hours (instead of 60), has been extended (as of the date of this update) until 14 April 2026.
Sector-specific permits in security / guarding and transport / haulage / logistics have also been extended.
More to explore
