In Israel, the probation period serves as a trial phase, during which employers and employees can evaluate whether the employment relationship is a good fit. This phase is primarily governed by the Israeli Labor Law (5718-1958) and subsequent amendments.

It allows the employer to assess the new hire’s skills, cultural fit, and performance. At the same time, it enables employees to determine whether the job opportunity and work environment align with their career expectations.

This guide examines the key rules and regulations of probation periods in Israel, detailing how they apply to businesses and employment contracts.

Definition of a Probation Period in Israel

Probationary periods are a common practice in permanent employment contracts. It allows the employer and the employee to assess whether the employment is a good long-term fit. The Israeli labor law regulates every aspect of employment.

Several statutes implicitly address the probation phase, including the Severance Pay Law, the Notice of Prior Dismissal and Resignation Law, and others. The existence and duration of a probationary period are typically defined in the individual employment contract. 

During the probation period, termination often follows flexible procedures compared to those for permanent staff. Once a probationary employee completes this initial phase, their status transitions to that of a permanent employee.

Lengths of Probationary Periods in Israel

Israeli labor laws do not explicitly prescribe a standard probationary period duration. Instead, the length and terms are primarily determined by the company’s policy and are written into the employment contract. 

While various labor laws apply to different lengths of service, most probationary periods commonly range from 3 to 6 months. However, some may extend up to 12 months. This initial phase of employment is treated as the first assessment period under the labor law. 

More so, when it comes to severance eligibility and termination notice period. If no probation period is not clearly stated in writing, the employee is considered a permanent staff member from the first day of employment. 

According to the Severance Pay Law, 1963, employees are generally entitled to severance pay only after completing one year of continuous employment. Those terminated during probation will not qualify for this statutory severance pay.

Permanent or Indefinite Contracts

In Israel, most employees are hired under indefinite-term contracts. These contracts are considered a legal and practical standard for stable employment. They do not have a predetermined end date and will remain valid until terminated by either party, the employee or the employer.

A probationary period is often included at the start of a permanent employment contract. Typically, the initial assessment phase can last a few months or extend to the first 12 months of service.

Both parties assess the working relationship. If the probationary employee is not dismissed during this time, the employment continues automatically under the terms of an indefinite contract.

Fixed-Term or Definite Contracts

Israeli labor law also allows fixed-term employment contracts. But these are typically restricted to clearly defined and justifiable circumstances, like temporary replacements or project-based roles. The agreement must outline the exact end date.

A fixed-term employee is generally someone hired for up to 12 months. If an employee continues working beyond the agreed period, their employment contract is legally considered permanent unless a new agreement is signed.

Employers can include a probationary period within a fixed-term contract and will follow the same principles as in a permanent contract. Temporary employees are still entitled to appropriate notice periods if terminated before the contract ends. 

Legal Considerations for the Probation Period in Israel

Israel’s legal framework for employment is highly protective of employees. It is shaped by specific labor laws, extensive case law (developed by the Labor Courts), collective agreements, and individual employment contracts.

While applying for probationary periods, employers must consider specific obligations, especially regarding pay, notice periods, the termination process, and employee rights.

Pay and Working Conditions

All employees in Israel, including those on probation, must be paid at least the national minimum wage. As of December 2024, the minimum monthly wage is NIS 6,248, and the hourly minimum is NIS 29.

The standard workweek is 42 hours, typically split as 8.6 hours per day for four days and 7.6 hours for one day. This is subject to mutual agreement. Employers must provide at least a 36-hour uninterrupted weekly rest period.

Employers and employees are required to contribute to the National Insurance Institute (Bituach Leumi) and Health Insurance. Contributions are based on income, with combined contributions reaching up to 7.6% of the employee’s monthly income. Additionally, the Health Insurance Tax is levied at 3.23%.

Termination and Notice

Under Israeli law, written notice is required for dismissal or resignation. The length of notice varies based on the employee’s tenure and salary structure:

Length of ServiceNotice Period
First 6 months1 day per month of service
Months 7–126 days + 2.5 additional days for each full month beyond the 6th
After 1 year1 full month

Employers may waive the notice period by paying the employee their full salary. Employees dismissed within their first 12 months are generally not entitled to statutory severance unless  Section 14 of the Severance Pay Law applies.

In addition, the employer must make the right pension contributions. Even during probation, a formal dismissal hearing (Zechut Shimu’ah) is required. The employee must receive a written notice explaining the reasons for potential termination and the right to bring representation to the hearing.

Vacation / Holidays

Israel observes 9 to 10 official Jewish holidays annually, which are generally treated as paid days off. Employees who work on a public holiday are entitled to either 150% of their normal pay or a compensatory rest day. If the work includes overtime, the compensation increases to 250% of the regular income. 

Employees earn paid annual leave depending on their seniority and workweek structure. 

Years of ServiceAnnual Leave Entitlement
After 1 year12 days
After 2 years14 days
After 8+ yearsUp to 24 days

Employees also accrue 1.5 days of sick leave per month, up to a maximum of 90 days. The first day of sick leave is unpaid, the second and third days are paid at 50%, and employees receive 100% of their regular salary from the fourth day onwards.

Benefits of Probation Periods in Israel

Probationary periods in Israel offer key benefits for both employers and employees. This trial phase provides a structured opportunity to assess compatibility before making a long-term commitment:

  • For Employees

Employees gain a clear and defined period to experience their new work environment before committing to the long term.

Employees can resign easily within the initial months, often with a shorter notice period requirement than for permanent employees.

New employees receive core labor protection from the first day of service, including minimum wage, standard working hours, and workplace safety conditions.

  • For Employers

Employers can evaluate an employee’s performance, cultural fit, and problem-solving abilities before confirming long-term employment.

Termination during probation involves simpler procedures and avoids the complexities of statutory severance pay tied to permanent employment.

Shorter notice periods reduce the financial and legal risks of hiring an unsuitable employee.

Conclusion

Israel offers a dynamic and opportunity-rich market, especially in its growing high-tech and innovative sectors. However, understanding its labor laws and regulations, particularly those governing the probation phase, notice requirements, and mandatory pre-dismissal hearing process, can be challenging for any employer.

Staying compliant can be difficult for international businesses without an established local entity or deep expertise in Israeli labor law. Remote People helps simplify this process by handling all complexities of local employment, accurate probation period regulations, and full benefits management.

Frequently Asked Questions

No, a probation period is not legally required, but it's commonly included in employment contracts. Their terms and duration must be agreed upon in writing.

Most contractual probation periods last between 3 to 6 months, though the labor laws often treat the first 12 months of employment as a broader assessment period for severance eligibility and termination.

From day one, probationary employees are entitled to fundamental statutory benefits like minimum wage, national insurance, health insurance, and pension contributions.

An employer cannot unilaterally extend the accrual of these statutory rights by simply extending a contractual probationary period. They can continue to assess an employee within the first year.