(“Swords of Iron” War, Israel 2023)

Summary of expected legislative changes based on the Israeli Certified Public Accountants Institute Bulletin dated September 11, 2023

Below is a clarification regarding employees’ rights to unemployment benefits while on unpaid leave, according to the anticipated amendments to the Economic Assistance Program Law (Temporary Order – “Swords of Iron”), 5784-2023, as known at the time of writing.
Please note: all explanations are subject to the official publication of the law. A more detailed update will follow upon the law’s official enactment.

Important Clarification:

Each employer must independently verify the legality of unpaid leave and the conditions under which an employee may be placed on such leave. Special categories of employees may require additional permissions or entitlements to full compensation.

Conditions for Receiving Unemployment Benefits:

  • Israeli residency (including temporary residents)

  • Eligible age: from 20 to 67 years (in certain cases from 18)

  • Suspension or termination of employment relationship

  • Accumulation of eligibility: 12 months out of the last 18 months (reduced to 6 months temporarily)

  • Registration at the Employment Bureau as a job seeker

  • For individuals with disabilities: eligibility after 3 months of employment

Unemployment benefits also extend to spouses of reservists, subject to receipt of proper compensation.

Additional Highlights:

  • Unpaid leave must be initiated by the employer, even if consented to by the employee.

  • Employees over 67 years old: eligible for a special allowance — 75% of prior income, up to ₪134 per day.

  • Registration and reporting must be made through the Employment Bureau.

  • Minimum unpaid leave qualifying period reduced from 30 days to 14 consecutive days.

  • No entitlement to unemployment benefits during periods when the employee receives salary or vacation days.

  • Special arrangements for those living in evacuated areas or directly impacted by the war.

  • Self-employed workers have specific income reporting rules.

Employers are obligated to assist employees with the submission of the necessary Form 100 regarding employment termination and return to work.

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