During and following Israel’s Operation Iron Swords, employers across the country faced an unprecedented set of employment law questions. With large numbers of workers called up for reserve duty, others unable to work due to security restrictions, and businesses under significant financial pressure, understanding employment rights in Israel during wartime is critical for every HR manager and business owner.
Reserve Duty and Employment Rights in Israel
Israeli law provides strong protections for employees called up to active reserve duty. It is illegal for an employer to dismiss or furlough an employee during their reserve service, or within 30 days of their return. Employees on reserve duty continue to accrue seniority, annual leave, and pension entitlements as if they were at work. Their salaries during the reserve period are paid by the National Insurance Institute (Bituach Leumi), not the employer — though employers must facilitate this process through correct reporting.
Unpaid Leave: What Employers and Employees Need to Know
Placing an employee on unpaid leave (Chufsha Ldlo Tashlum) during wartime requires the explicit, voluntary agreement of the employee. An employer cannot unilaterally impose unpaid leave without the employee’s written consent. Doing so exposes the employer to claims equivalent to constructive dismissal under Israeli labour law, which can result in full severance pay obligations and court-ordered compensation.
If an employee does consent to unpaid leave, the arrangement should be documented in writing, clearly specifying the duration and the conditions for return. Open-ended unpaid leave agreements create legal ambiguity and should be avoided.
Parental Rights During Military Operations
Parents with children up to age 14 — or children with disabilities up to age 21 — who cannot attend supervised childcare or school due to security closures are entitled to remain at home. This absence is unpaid unless a collective agreement or employer policy provides otherwise. The key right is that the absence cannot be treated as unauthorised, and the employee cannot be penalised or dismissed for exercising it.
Salary Continuity and Government Support Schemes
The Israeli government introduced several support mechanisms during Operation Iron Swords to help businesses maintain salary payments to employees who were unable to work due to reserve duty call-ups or security-related closures. Employers should actively check with the Israel Employment Service and the National Insurance Institute for the latest guidance on available grants and compensation schemes.
HR Guidance for Managing Employment During Crisis
For businesses navigating a workforce in wartime conditions, CWS Israel recommends maintaining open, written communication with all employees about their rights and the company’s intentions. Document every decision, particularly those involving leave arrangements, working-from-home adjustments, or reduced hours. And always seek professional employment law guidance before making any decision that could be interpreted as a redundancy or dismissal.
CWS Israel’s team is available to support employers managing complex workforce situations arising from Israel’s security situation. Contact us for practical, legally sound guidance.
Frequently Asked Questions About Employment Rights During the War in Israel
Can an employer reduce an employee’s salary during the war without consent?
No. Unilateral salary reductions are unlawful in Israel, even during a security crisis or economic hardship. Any reduction to salary must be agreed by the employee in writing. An employer who reduces pay without consent may face a constructive dismissal claim, triggering full severance and notice pay obligations. If financial difficulties require workforce adjustments, employers should seek legal advice and explore government support schemes before changing salary terms.
Are employees called to reserve duty entitled to full pay during their service?
Employees called to reserve duty receive compensation from the National Insurance Institute (Bituach Leumi) rather than from their employer during the service period. The NII typically pays the employee’s regular salary up to a statutory maximum. Employers must facilitate the process by issuing the correct forms and documentation. Some employers choose to top up the NII payment to maintain the employee’s full salary as a retention measure.
Where should employers report problems with employees not returning from reserve duty?
Employers facing challenges with employees who have been on extended reserve duty should contact the Ministry of Economy’s Labour Relations division and seek guidance from CWS Israel’s HR compliance specialists before taking any action that could be construed as dismissal.
