Introduction
Foreign embassies operating in Israel frequently encounter challenges regarding understanding holiday and leave rights of Israeli employees, particularly concerning salary entitlements during holidays and leave for their local Israeli staff. These knowledge gaps can lead to friction with local employees, misunderstandings about legal obligations, and potential compliance issues. This article was written with the assistance of Sachar Plus – Outsourced Payroll Services.
Over the years working with foreign embassies, we have frequently encountered cases where, despite the embassy’s desire to always operate in accordance with the law, information gaps and differing work norms between countries sometimes caused friction with the Israeli staff. The purpose of this article is to bridge these information gaps by providing a clear explanation of Israeli employees’ rights under Israeli law, whilst assisting embassies in avoiding unexpected costs and simultaneously ensuring proper treatment of their local workforce in Israel in accordance with Israeli labour laws.
Understanding these regulations is essential for maintaining positive employer-employee relations and avoiding legal complications that may arise from non-compliance with Israeli labour law standards.
The rights of an employee who is an Israeli resident regarding payment for Jewish holidays are determined according to Israeli labour laws. This right cannot be waived through an employment contract with the employer, even when the employer is a foreign embassy. This article describes the main regulations applicable to employment, regardless of the embassy’s country of origin. Within the “dry” explanations, we have tried to incorporate common examples that embassies typically encounter and to cover everything you wanted to know about employees’ rights during holidays in Israel (and even if you didn’t want to know – between us, you have no choice).
Recognised Israeli Holidays
According to Israeli law, the following holidays are recognised as official holidays:
- 2 days of Rosh Hashanah
- Yom Kippur
- 2 days of Sukkot
- 2 days of Passover
- 1 day of Shavuot
- 1 day of Independence Day
These nine days constitute the official holiday calendar affecting employment rights, during which employees receive regular wages but do not come to work. In cases where these holidays coincide with Saturday – there is no additional payment for them.
Beyond these holidays, there are many other holidays and days that are observed (Jerusalem Day, Fast of Gedaliah, Lag BaOmer, memorial days, etc.). These holidays do not entitle one to paid leave days!
Before each holiday there is a holiday eve, and Israeli labour laws also regulate working hours on holiday eves: a full working day on a holiday eve consists of seven hours and full daily wages will be paid for it. Nevertheless, the practice in Israel in most workplaces allows a monthly employee to work 5 hours with payment for a full day, and for an hourly employee – after working five hours – an addition of two hours to the wage (subject to the employer’s goodwill, not mandatory, except if there is an established practice at the embassy).
Entitlement to Holiday Payment:
The rights differ between an employee on a monthly salary and an hourly or daily employee. This is sometimes confusing, so we have formulated examples.
Employees on Monthly Salary (Regular and Fixed Salary)
An employee who receives a fixed monthly salary is entitled to payment of the regular salary even during months in which holidays occur. Since the payment is based on a monthly (fixed) basis, the employee will receive the standard monthly salary regardless of holidays occurring in that month. He is not entitled to additional payment for the holiday days themselves, as they are already covered in his monthly salary structure.
Examples:
- Sarah works as an administrative coordinator at the Embassy of Neverland in Tel aviv and earns ₪10,920 per month (in accordance with a wage of ₪60 per hour × 182 monthly hours). During September, which includes two days of Rosh Hashanah and Yom Kippur on which she does not work, she receives her full salary of ₪10,920 without deductions. On Yom Kippur eve, she works only 7 hours instead of the regular 8 hours (and if the employer agrees, even 5 hours) but receives her full wage.
- Leah works as a secretary part-time at the embassy and receives a monthly salary of ₪5,000 per month for 4.5 hours of work per day. During September, which includes two days of Rosh Hashanah and Yom Kippur on which she does not work, she receives her full salary of ₪5,000 without deductions. On Yom Kippur eve, she works 4.5 hours as usual.
Daily, Hourly or Contract Employees
An employee who receives wages on a daily, hourly or contract basis is entitled to holiday payment, provided he meets the following conditions:
Minimum employment period: The employee has been working at the current workplace for at least three months;
Attendance requirement: The employee is not absent from work immediately before or after the holiday (the day before the holiday and the day after the holiday) unless he has received the employer’s consent for such absence.
Examples:
- David works as a security guard at the embassy, earns ₪60 per hour and works 8 hours per day (₪480 per day). He has been employed for half a year. During the Passover holidays, he is entitled to payment of ₪960 (₪480 × 2 holiday days), even if he did not actually work on those days, as long as he worked the day before and after the holiday. On Passover eve, he works only 7 hours instead of 8 hours but receives his full daily wage of ₪480.
- Moshe works as a security guard at the embassy, earns ₪60 per hour and works 8 hours per day. Moshe started working about two months ago and therefore receives wages only for his work and not for the holiday days he missed.
Example of an hourly employee:
- Rachel works as a translator at a Latin American embassy, earns ₪60 per hour and works 6 hours per day (total 30 hours per week). On Independence Day, even though the embassy is closed, she is entitled to payment of ₪360 (₪60 × 6 hours). On Independence Day eve, she is required to work normally and receives full payment of ₪360, but the employer may approve for her to work only 5 hours instead of 6 hours.
Special provisions apply to employees who are not Jewish. The embassy is not obligated to pay for both Israeli holidays and holidays according to the employee’s religion. In such cases, the employee has the right to choose whether to receive payment for Israeli holidays or for holidays according to his religious faith.
Example:
- Mohammed, a Muslim employee at the embassy, can choose to receive holiday payment either for Israeli holidays or for Islamic holidays such as Eid al-Fitr and Eid al-Adha, but not for both groups of holidays. Mohammed will typically choose to receive the Israeli holidays because they are more days than the Muslim holidays.
Practical Implications for Embassies
Common Misunderstandings
Many foreign embassies initially assume that Israeli labour laws reflect the regulations of their country of origin or international diplomatic practices. This typically stems from habits. Issues that seem trivial to us can be different in Israel, and Israeli law prevails when it comes to local employees. Disputes on this matter can cause legal problems, but more than that – potential damage to relations between the embassy and the employees, a situation that is obviously undesirable. The key, in our opinion, is transparency and coordination of expectations: explain in advance what the employee is entitled to according to the law, and how the embassy operates.
Important Considerations
Employment Agreements
It is always advisable to ensure that employment agreements comply with Israeli law. Labour courts typically prefer to protect the employee, and there are cases where the employer will be obligated to compensate an employee without proof of damage, solely due to technical issues in the employment agreement. In cases where employment agreements include payment in foreign currency, there may be additional implications related to exchange rates and foreign currency transfers.
Embassy-Specific Policies
Whilst Israeli labour laws provide the basis for your rights, your embassy may have additional policies or agreements that enhance these benefits and are then considered binding practice. It is recommended to understand what procedures exist at the embassy in this context, even if these are procedures instituted by the previous ambassador.
Seeking Clarification
If you have questions about how these regulations apply to your specific situation, consider consulting with your embassy’s human resources department or Israeli experts in payroll or labour law. Sometimes handling employee wages, taxation and dealing with authorities in Israel requires special expertise, and our office is at your disposal on these matters through contact with offices.
Summary
Understanding Israeli holiday rights is essential for both embassies and their local employees. For embassies, proper compliance prevents legal problems and maintains positive employment relations. For employees, knowing these rights ensures fair treatment and appropriate compensation. Clear communication regarding these requirements from the beginning of employment helps establish mutual understanding and prevents conflicts that might otherwise arise from cultural or legal misunderstandings. For additional information, one can contact the government website of the Ministry of Labour at this link.
We recommend sending a centralised email to employees before each holiday explaining exactly what the working days are during that holiday, how many hours and what is expected from the staff.
By following these guidelines, foreign embassies can successfully navigate Israeli labour laws whilst maintaining efficient operations and a satisfied local staff.
