Remote’s guide to employing in

Israel
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Make employment in Israel easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Israel, all in one easy-to-use platform.

Services available in this country:
Employer of Record ProductContractor ManagementPayroll
  • Capital City

    Jerusalem

  • Currency

    Israeli new shekel (₪, ILS)

  • Languages

    Hebrew, Arabic, and English

  • Population size

    9,305,440

Services available in this country:
Employer of Record ProductContractor ManagementPayroll
A view of the beach and city in tel aviv.

Employment termination in Israel

Termination process

In Israel, employers are obligated to follow a fair and transparent process before terminating an employee. Israel requires employers to invite the employee to a hearing with a document in writing that presents the reason(s) why they would like to proceed with a termination. The employee is given time to respond at the hearing and has the option of appointing a lawyer to present their case. The employer must take into account everything that was said by the employee at the hearing and assess the need for termination again. Companies should consult legal counsel before proceeding with a termination in Israel.

Notice period

During the first six months, one day of notice is accumulated for each month of employment. In addition to the six days accumulated, 2.5 days of notice are accumulated for each month of employment from the sixth month to the end of the first year. Following the first year, termination requires a 30-day notice.

Severance pay

Terminated employees in Israel receive one month’s salary for every year of service as severance pay. Employees who have worked for less than one year are not entitled to severance pay. The monthly salary used to calculate the severance payment is the employee’s average salary over the last 12 months. Some employers add a severance component of 8.33% to the employee’s monthly compensation.

Probation periods

Probationary periods are informally allowed in Israel, usually lasting a few months. While employees are to be treated as full employees with all accorded benefits during the probationary period, employers may dismiss employees during the probationary period more easily than they can dismiss more tenured employees.