Can an Israeli employer place an employee on unpaid leave without consent?

Israeli employment terms cannot be changed unilaterally to the employee's detriment, and pay is the most protected term of all. Placing a worker on unpaid leave stops their wages while nominally preserving the job, but the law looks at substance. Where the employer imposes this without genuine consent, the employee can rely on Section 11(a) of the Severance Pay Law 5723-1963, which equates resignation caused by a material deterioration in conditions with a dismissal for severance purposes. Alternatively, an extended period of forced unpaid leave can itself amount to a constructive dismissal, obliging the employer to give notice under the Advance Notice for Dismissal and Resignation Law 5761-2001 and, in many workplaces, to hold a pre-dismissal hearing. Our employment law guide for Israel sets out these protections in context.

For a foreign employee the practical response is to document everything and object in writing before accepting any unpaid period. Silence or simply staying home can be argued as acquiescence, so a clear written objection preserves your position. Genuine consent to unpaid leave is possible and sometimes mutually useful, for example during a temporary slowdown, but it must be real agreement rather than a take it or leave it instruction. If the employer refuses to pay and insists on the arrangement, the employee can resign and claim severance, or claim the unpaid wages and damages in the Regional Labour Court. Time limits apply, so a worker who believes they were forced onto unpaid leave should take advice quickly rather than letting months pass.

From the full guide: Employment Law in Israel for Foreign Companies and Expats

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