When you hire an employee in Israel, whether directly or through an EOR (Employer of Record), you need to comply with Israeli labor laws. Legal vacation days are divided into two categories: national holidays and PTO (Paid Time Off).
National holidays
There are 9 national holidays for Jewish citizens in Israel. These are:
- First day of Rosh Hashanah
- Second day of Rosh Hashanah
- Yom Kippur
- Sukkot
- Simchat Torah
- First day of Pesach
- Last day of Pesach
- Yom Haatzmaut
- Shavuot
Jewish holidays are based on the lunar calendar coordinated with the solar calendar, so the holidays fall out in the same season each year, but the exact dates can vary. Additionally, there are some slight variations between when holidays are in Israel vs. when they fall out in the rest of the world. The dates for the national holidays in Israel all the way up to the year 2030 can be found on the Hebcal website.
PTO in Israel
The minimum legal requirement for PTO is 12 days a year for a full-time employee. Companies can, of course, offer more vacation days, and the number of PTO days is often the subject of contract negotiations between employers and employees. Employers do have discretion over when vacation days are taken, including the right to close the office down and require employees to take their vacation days at that time, providing that the employees are notified two weeks in advance (if the vacation is for 7 days or longer).
Aside from the national holidays, there are 17 days which Israelis may want to take off either because their kids are off school and/or because religious observances are made simpler by not working. These days must be taken as PTO, but the employee can take up to one of these days a year without needing permission from the employer.
Flexibility is key
Employees working through an EOR tend to be very flexible in their schedules. They often take meetings or answer emails outside of their normal work hours and they might be working evening hours in Israel to coincide with the rest of the team. They can also cover your national holidays so everyone else can take the day off, secure in the knowledge that business is being taken care of.
Employees of EORs who go out of their way to fit their schedule into yours and be as available as possible, are particularly appreciative when your company reciprocates. Be understanding about the need for vacation days at times you’re not used to, allow workers to make up hours instead of sticking to a rigid schedule and foster an environment of trust and communication about time off. This will result in a mutually beneficial, long-term employment relationship.
