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Swords of Iron: Unemployment Benefits and Unpaid Leave

The Ministry of Finance’s November 2023 outline, as amended and approved to date:

The Israeli Employment Service has outlines certain concessions (summarized at the bottom of the Ministry of Finance’s circular) regarding the ability for businesses to put staff on unpaid leave, and the corresponding rights of those on whom unpaid leave is imposed.

These concessions include:

  • reducing the requirement to first offset accrued vacation days before putting staff on unpaid leave;
  • Extending unemployment benefits for those who would otherwise have used up 180% of their eligibility days within the last 4 years;
  • reducing the minimum period of employment to qualify for unemployment benefits (to 14 days down from 30);
  • reducing the period of paid employment required to just 6 of the last 18 months, so as to qualify for benefits;
  • providing special grants to people who have been displaced as a result of the Swords of Iron war;
  • providing special grants to people aged 67 or above who have become unemployed during the war; and
  • suspending the lapse of the 60-day protection period (in which those returning from parental leave cannot be rendered unemployed).

In matters relating to employment, even more so than in other areas, the law and practice changes frequently in accordance with official circulars. As such, we recommend consulting with our employment law department in case of any queries, to ensure the most up to date information is available to you.

* This newsletter is provided for informational purposes only, is general in nature, does not constitute a legal opinion or legal advice and should not be relied on as such. If you are seeking legal advice, it is essential to review the specific facts of each case in detail with a qualified lawyer.

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