At a glance: hiring employees in Israel

Background information on applicants

Are there any restrictions or prohibitions against background checks on applicants? Does it make a difference if an employer conducts its own checks or hires a third party?

In general, any background check is subject to the general principles and provisions of the law (ie, the candidate’s basic right to dignity and privacy, non-discrimination provisions and general good-faith obligations).

The identity of the person conducting the background check is irrelevant, subject to any applicable privacy regulations.

Criminal record checks are forbidden except for government security employers specified by law. Employers providing services to children and disabled or mentally ill people must require all male candidates to provide a police confirmation that they have not been convicted of a sex crime.

Economic background checks are also forbidden by law.

Are there any restrictions or prohibitions against requiring a medical examination as a condition of employment?

Generally, medical history is irrelevant and may not be considered during background checks, and it is prohibited to require an employee or candidate to undergo a medical examination; however, medical examinations are a legal requirement in some industries and occupations in the public sector.

Are there any restrictions or prohibitions against drug and alcohol testing of applicants?

Drug and alcohol testing is generally forbidden unless required by law in certain very specific cases.

Hiring of employees

Are there any legal requirements to give preference in hiring to, or not to discriminate against, particular people or groups of people?

There are protections for employees from discrimination accorded under the law (eg, the Employment (Equal Opportunities) Law and the Equal Rights of Persons with Disabilities Law). Also, according to the Equal Rights of Persons with Disabilities Law, some employers are obliged to comply with appropriate representation settings.

Must there be a written employment contract? If yes, what essential terms are required to be evidenced in writing?

The Notice to Employees and Job Candidates (Terms of Employment and Screening and Recruitment Process) Law obliges employers to provide each employee with a notice of his or her main employment terms using a stipulated form. Although such a notice is not an employment agreement, it needs to include information regarding specific terms of employment as determined by law.

Further, the acceptance of a specific pension arrangement, stating that accrued sums in the severance component are in lieu of severance payments, must be made in a written agreement, including a specific form published by the Ministry of Labour, Social Affairs and Social Services.

Also, the Foreign Employees Law requires a foreign employee’s notice regarding the terms of employment to be in a language known to the employee and to include specific terms and conditions.

To what extent are fixed-term employment contracts permissible?

There is no limitation on fixed-term employment contracts. As with any other contract, it should be subject to good faith non-discrimination obligations.

What is the maximum probationary period permitted by law?

There is no set probationary period in Israeli labour law. Parties may agree on a probationary period in an employment agreement. An employee on a probationary period is entitled to all terms and benefits stipulated under the basic labour laws and case law.

What are the primary factors that distinguish an independent contractor from an employee?

The factors that distinguish an independent contractor from an employee depend on the following issues:

• whether the individual’s function is an integral and regular part of the business receiving the services;
• the extent of control over the individual;
• whether the individual has his or her own business, takes economic risks, hires employees or maintains a list of clients;
• the extent of the individual’s financial dependence on the business receiving the services;
• whether it is the individual or the business receiving the services that supply the means to work (ie, the equipment, vehicles, materials and tools);
• the place of work (ie, whether work takes place at the premises of the individual or the business receiving the services);
• the length of engagement;
• the method of payment;
• the method of payment of taxes by the individual;
• the legal terms and structure stipulated in the service agreement; and
• whether the parties believe that they are entering into an employer-employee relationship and how this is presented to third parties.

Is there any legislation governing temporary staffing through recruitment agencies?

The Manpower Contractors Law 1996 governs temporary staffing through recruitment agencies. According to specific definitions, the Law places restrictions on contractors, employees, and the ‘employer in practice’, such as automatic recruitment after nine months.