HR Consultancy Service in Israel
IRIS HR Consulting has experience helping businesses grow in Israel. Without expert guidance, it can otherwise be risky and costly to leave local laws and legislation open to interpretation. For a scalable, compliant operation, IRIS can manage your HR in Israel to help your business hire, recruit, and pay staff overseas in new, unfamiliar countries. When it comes to obstacles, IRIS can help you overcome parts of Israeli employment laws that seem complicated. As a popular destination for businesses, IRIS can navigate local barriers – from culture to compliance – to arrive at a rewarding opportunity for your business to thrive in this exciting marketplace.
Take your business to Israel with IRIS HR Consulting.
Global Expansion to Israel
Despite its size, Israel offers one of the most competitive global markets and economies. Its standout reputation situates Israel as a market leader in advanced technology, and this sector has proven resilience and growth. This has, in part, helped foster a reputation for creativity and ingenuity that is aligned with Israel’s technology market and talent markets. Labour is internationally recognised as resourceful, intelligent and focused here.
Whilst there are limited laws governing foreign investment, Israel has developed a global status for the following:
- A high volume of start-ups
- An alignment with sophisticated tech markets
- A bustling global economy that competes with key market players
Science & Technology in Israel
Something of a technology start-up nation, Israel is the home of ‘Silicon Wadi’, a location of concentrated tech firms clustering in one space. This growth has been accelerated because of its human resources, education systems (thereby creating skill availability) and widespread use of English and other languages. Much of this has been associated to Israel’s local culture and its relationship with the military, where it’s often argued that technology trickles down from the army before making its way into civilian applications.
Israel’s answer to American tech is equally as competitive if not more globally versatile at times. The push behind research, here, is partly spurred by a contagious entrepreneurial spirit and excitement of aspirational human resources. The result, a bustling tech cluster that shows no signs of slowing down.
Establishing your Business in Israel
Embarking on a global expansion is a strategic move to gain extra value from exciting foreign markets, which are constantly evolving and full of opportunity. But the international stage isn’t always easy to navigate.
Before establishing your operation in these exciting and faraway markets, you must ensure compliance with employment regulations, which are constantly evolving.
Starting a business in Israel can be economically competitive, especially for a company’s access to technology, science and research.
Every business must plan for HR services and compliance before globally expanding. Yet, Israel enjoys flat hierarchies, which enables business investment and growth with minimal external influence.
Did you know?
Due to a highly educated, and competitive, labor market, it can be a difficult entry for expats without the same skills and experience. For employers, this means there is ample opportunity to acquire talent.
Israeli Employment Laws
When first expanding your business into Israel, navigating local laws, legislation and rules of employment is no mean feat, especially if you’re unfamiliar with the country’s local legislation and the values and principles core to its business climate.
Throughout all corners of the globe, these laws are almost never universal. Rather, employment is dynamic and reflects the countries social, economic, and cultural opportunities.
Work Visas in Israel
Workers will need to obtain and receive a B/1 work permit before entering Israel. But this is only valid for 30-days. To work beyond this period, employees will need to obtain a work permit as well. Both a visa and a permit can be applied for simultaneously, reducing wait times.
To obtain these, employees will need to show proof of:
- A valid passport
- Visa completion
- Medical certificate
Employment Rights & Contracts in Israel
Where there is no statutory requirement to capture employment particulars within a contract, it is still advisable to provide and supply one. This should be written in the local language.
Contracts should include:
- Primary (and supplementary) perks or benefits
- Termination disclosures, including probation
Employment offers should state expected salary and capture this value in Israel’s local currency, shekel.
It’s not uncommon for a contract to provide noncompete terms for future employment, including confidentiality clauses. This should, however, be carefully phrased and is only legitimate if it’s aimed at protecting an employer’s resources from outside influence or where it undermines their competitiveness.
What are the Working Hours in Israel?
The conventional working week, due to religious motivations, operates from Sunday to Thursday. However, non-Jewish employees may opt for Friday, Saturday or Sunday as their holiday. The weekly limited is set at 43-hours, which can be worked across 5 or 6 consecutive days. Yet, this must not surpass 9 -hours daily.
Overtime in Israel
Overtime describes a prior agreement for an employee to work in excess of their standard hours as per their contract. Overtime pay is calculated daily, and follows these rules:
- The first few hours of extra time are paid at 125% regular wage.
- Additional hours may be set at 150% across the week.
It’s not uncommon for companies to settle this as monthly compensation, payable within each payroll quota.
Maternity Leave in Israel (Including Paternity)
Maternity leave equates to 26 weeks; 6 weeks of which should be taken prior to the due birth date. Whilst mothers are entitled to reduce the leave period, this cannot be less than 14 weeks. The statutory Maternity Allowance paid is dependent upon the duration of national insurance payments made, but is capped at 15 weeks; it is customary for employers to enhance this provision.
Providing the statutory conditions are met, fathers may take up to 7 days’ paid leave, together with the mother. Subsequent to that, further leave may be taken from the mother’s 14 week entitlement and will be deducted accordingly from that balance.
Sick Leave in Israel
According to Israeli labor codes, sick leave accumulates at a rate of one-and-a-half days per month, climbing up to 90 days total.
During the first day of sickness, employee’s will not receive any payment. For the days thereafter, (the second and third), an employee can receive 50% of pay. Lastly, from the fourth day of illness, payment is set at 100% of wages. Yet, many companies will supply employees with full sick pay despite this guidance.
Public Holidays in Israel
In Israel, there are ten national holidays, including:
- Election Day
- First day of Passover
- Last day of Passover
- Memorial Day (Half Day)
- Independence Day
- Rosh Hashanah (New Year)
- Yom Kippur (Day of Atonement)
- Sukkot (Feast of Tabernacles)
- Shmini Atzeret/Simchat Torah
Annual leave is statutory and protected as a key right for employees. This normally provides for an entitlement of 12 -14 days yearly.
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End of Service
HR in Israel requires compliance not only during an employee’s service, but also at the end of it. End of service might include severance, termination, redundancy, and leaving packages. Or, for globally mobile companies with teams in foreign markets, this could be repatriation services for those returning from an assignment overseas.
For these more complicated matters, you will need expert HR guidance to navigate Israeli labor laws and remain compliant.
Termination (including Severance) in Israel
Employment may be concluded after one of the following:
- Expiration of contract
The employer must provide adequate reasoning on termination of an employment contract. Prior to exiting a role, employers must provide written notice (as with employees upon resignation) and the length of this is dependent on salary. During the first six months of employment, this is set at one day. Thereafter, it climbs to 30 days after the first year of a contract.
Retirement & Pensions in Israel
The pension scheme in Israel is divided into three parts, which are compulsory:
- State or public old-age pension
- Privatised pension schemes
- A scheme for civil servants
Depending on the type of employee, pension requirements are compulsory and contribute into social insurance funds as a retirement mechanism after certain criteria (typically age) have been met.
In Israel, the welfare estate covers the following areas regarding employee benefits:
- Retirement schemes, or pension
- Survivors benefit
Social Security benefits are funded by the Payroll Taxes paid by both employees and employer.
This benefit has gained in popularity amongst employers, and is designed to support employee and dependants, with more complex or ‘special’ treatments and surgeries.
The National Insurance Law describes how citizens are granted access to health care. Coverage is split into four categories of healthcare, each with different funding expectations, and prior to enrolment employees should nominate one.
Supplementary health insurance can extend health cover.
It is common for employers to provide access to an enhanced retirement savings vehicle; typically this would include a rider for disability insurance for employees.
This is an extremely commonplace provision and is widely expected as an employee.
After a year of employment, employees can expect to receive payment for convalescence, which operates at a duration of 5 – 10 days yearly.
Education or Study Fund
This tax-efficient benefit is widely expected as an employee and to not provide such support would be unusual.
Why Partner With IRIS?
When entering new, exciting countries such as Israel, you will need an employment specialist to navigate the parts of Israeli employment law. Delivering a compliant solution, IRIS can help your business arrive into new marketplaces whilst protecting your workforce – our partners can discover power and protection through us.
Overseas expansions can seem risky to those who dare it alone. Understanding the complexity of a fully complaint solution, IRIS can help businesses reach Israel.
Our cost-effective, knowledgeable approach to HR in Israel makes us an ideal partner to commence your overseas plans.