The past few days have been fraught with considerable complexities, including with regard to labor relations in Israel.
The big question these days is who has permission to work, and from what location. In this update, we will try to answer these and related questions, such as who must be paid wages and when, and who has permission to deviate from the statutory limit on overtime hours
Yes, absolutely. Remote work is permitted and wages must be paid in respect thereof.
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Can an employer obligate an employee to work remotely?
No. Normally, an employer cannot compel its employees to work during a state of emergency. Compelling employees to work is only permissible if an order has been issued that applies Chapter 4 of the Emergency Employment Service Law, which allows enterprises certified as “essential” to continue operating. Such an order was issued on June 13, 2025 and expired on the morning of June 15, 2025. At this stage, we assume that this order will not be renewed.
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Is an employee who does not work remotely entitled to wages?
No. Anyone who does not work remotely is not entitled to wages. Pursuant to the Law for the Protection of Workers during States of Emergency, when the government declares a state of emergency in the economy, entitlement to wages is contingent upon the signing of a collective bargaining agreement. Since a collective bargaining agreement has not yet been signed in this regard, any employee who is not actually working during the state of emergency is not entitled to wages.
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Who may work at their workplace at this time?
As stated, an order permitting essential enterprises to operate at their workplaces applied up until just before dawn on June 15, 2025.
On June 15, 2025, after the order expired, the Ministry of Labor, in conjunction with the National Emergency Authority, published a press release declaring that enterprises that fall under the definition of “essential” do not have to submit an application to any specific authority in order to be able to continue operating during this period.
This means that enterprises falling under the definition of “essential” may continue operating from their regular workplace, even without a special permit from the Ministry of Labor. Essential enterprises are, inter alia, any enterprise or portion thereof that operates or can be operated for national defense or public security purposes, or for the purposes of providing essential services or supplies.
The Ministry of Labor’s press release further states that workplaces serving an “essential economy” may also continue operating. In this regard, “essential economy” refers to all entities involved in the value chain of Israel’s essential economy, including manufacturing, resources, services, materials, supplies, and other activities that are essential for the population’s subsistence, for the war effort and/or for the functioning of the economy. This press release significantly expands the categories of entities that are allowed to continue operating.
The Ministry of Labor’s press release is in line with the Home Front Command’s directives of June 15, 2025, as delineated in the population defense policy. These directives order the shuttering of workplaces, apart from those supporting an essential economy. According to the Home Front Command, an “essential economy” is one of the following: (a) an essential enterprise, as defined in the Emergency Employment Service Law; or (b) enterprises involved in manufacturing, resources, services, products, materials, supplies, or other activities that are essential for the population’s subsistence, the war effort and/or Israel’s economy, even if they are not deemed an “essential enterprise” by government ministries, or enterprises serving an essential economy as determined by the relevant authorities in the emergency economy system. The Home Front Command’s directives are currently in effect until June 17, 2025.
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Are there any restrictions on the operations of an essential enterprise or an essential economy?
There are definitely restrictions on the operations of an essential enterprise or an essential economy.
In this regard, the population defense policy lists the protective measures relevant also to employees working in an enterprise that is an “essential economy.” These include ensuring the existence of means to alert employees who are providing mobile and stationary services, protective measures, information, etc.
The Ministry of Labor’s press release is not an order, an extension order or any other directive. (To the best of our understanding, the Ministry of Labor might not publish one, at least at this stage.) Therefore, we recommend interpreting the Ministry of Labor’s press release prudently, whereby only essential manpower is to report to the workplace.
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Is a permit being issued so that employees can be asked to work overtime at a rate that deviates from the statutory limits during this period?
Yes. A general permit for employers throughout the economy to assign employees to overtime work was issued on June 16, 2025, allowing up to 14 hours of overtime work, subject to compliance with the permit’s conditions.
This permit is in effect for as long as the special state of emergency is in effect – currently up until June 30, 2025.
This permit allows employers to assign employees to work up to 67 hours per week (including overtime), with the overtime hours not to exceed the maximum of 90 hours per month.
Therefore, employers are allowed ask consenting employees to work up to 14 hours per day, provided that they give employees daily breaks of at least 15 minutes between noon and 14:00.
Any employer that employs employees under the current permit is not allowed to employ them under the general permit for employers to assign employees to overtime work or under general sectoral permits for employers to assign employees to overtime work.
This permit does not apply to employers subject to the extension order in the construction, infrastructure, heavy equipment, public works and renovations sectors.
Employers with more than 20 employees may ask employees to work overtime under the current permit, provided that one of the following two circumstances exists: (1) on the day that the employer asks its employees to work overtime under the conditions of the permit, at least 20% of its workforce is absent from the workplace, under circumstances not dependent upon the employer and provided that it has no other employees who can perform the work at the same output without working overtime; or (2) the workplace assigns employees in work in shifts, and at least 20% of the employees are absent from the workplace during that shift, under circumstances not dependent upon the employer and provided that the work cannot be performed by other employees working the same shift. The aforesaid does not apply to workplaces holding a valid “essential enterprise” certificate (as defined in the Emergency Employment Service Law) prior to the current permit.
Employers assigning employees to overtime work must take into account employees’ needs deriving from the special state of emergency.
Additionally, a general permit has been issued in the transportation sector enabling drivers to work overtime, in order to ensure continuity of service. According to the permit, consenting drivers may work for up to 15 hours per day and up to 90 hours per week, subject to the statutory provisions regarding daily rests and breaks. This permit is in effect until June 22, 2025.
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Can an employer send all of its employees on collective leave during a state of emergency?
Employers may send their employees on immediate leave for up to seven consecutive days, even during a state of emergency. Employers may do so with immediate effect, provided that the leave does not exceed seven days and that employees have accumulated vacation days that may be utilized. If the leave is to exceed seven days, employers must notify their employees at least 14 days in advance. It is important to keep in mind that if a collective bargaining agreement is signed regarding workers’ compensation for this period, employers will have to recalculate these vacation days.
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