Employment contracts Israel

What should an employment contract in Israel include?

In Isreal, an employment contract should entail the following information:

• Personal information of the employee and employer, including names and contact information. 
• The employees’ job title and description of duties. 
• The time and days the employee is expected to work. 
• Salary amount or wages and any bonuses that the employee is entitled to receive. 
• The notice period must be given by both parties in case of termination of the contract. 
• Non-disclosure and confidentiality agreements that the employee should sign. 

The employer and employee should carefully examine and understand the contract’s conditions prior to signing the contract. 

What types of employment contracts exist in Israel?

In Israel, employment contracts can be split into three categories:

1. Employee contract

The labor market in Isreal has two forms of employee contracts:

• Regular Employment Contract: This is a standard employment contract in which the employer hires an employee for an indefinite period. It typically includes provisions on working hours, salary, benefits, and other terms and conditions of employment.
• Fixed-Term Contract: This contract is used when employment is for a specific duration or purpose. The contract specifies the start and end dates or the event that will trigger its termination. Fixed-term contracts are often utilised for temporary positions, seasonal work, or specific projects.

2. Probationary periods

During probationary periods, individuals under assessment must receive the same treatment as regular employees. The duration of probation can range from one to 12 months as specified in the contract or applicable collective agreement. Regarding termination, a notice period is required, with one day per month worked for up to six months and, after, two-and-a-half days per month for up to 12 months.

3. On-Call Contract

An on-call contract is used when the employee is not assigned regular working hours but is available to work when called upon by the employer. This type of contract often applies to professions where flexibility and availability are essential, such as medical personnel or emergency services.

How to hire employees in Israel?

If you want to expand your hiring radius in Isreal, you’ll need to set up physical offices in the country. This means that you’ll be required to register your business with the Isreal authorities. It’s also vital that you follow the labor laws and regulations in Isreal, such as paying minimum wage, offering attractive benefits packages, and tax management. 

By using our Employer of Record services, you can focus on the core of your business while Native Teams will handle all the administrative tasks. Our team of experts will assist you in compliantly hiring new employees in Isreal and other countries around the world.