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Is a non-disclosure agreement enforceable in Israel, and what happens if it is breached?

Yes. An NDA is an ordinary contract under the Contracts (General Part) Law 5733-1973, and Israeli courts enforce it on its terms, including against foreign parties. Where the protected information also qualifies as a trade secret, the Commercial Torts Law 5759-1999 adds a statutory layer, and Section 13 allows a court to award up to NIS 100,000 per violation without the claimant proving any actual loss. The weak point is scope, because a confidentiality clause drafted so broadly that it stops the other side working at all will be read down as a disguised non-compete.

Two regimes run in parallel. Contract law supplies the remedies in the Contracts (Remedies for Breach of Contract) Law 5731-1970: an injunction, damages, and enforcement of an agreed compensation clause, which a court may reduce under Section 15 where it is grossly disproportionate to the loss that was foreseeable at signing. The Commercial Torts Law operates independently of any contract and protects business information that gives its holder a competitive advantage and that the holder took reasonable steps to keep secret, which is why document marking and access control matter more than the drafting. Chapter D of that law also allows an ex parte search and seizure order at the defendant’s premises.

A foreign company signing with an Israeli counterparty should settle the forum question early. Israeli courts respect a foreign governing law and forum clause, but an injunction over servers, staff or source code physically located in Israel is realistically obtainable only from an Israeli court, so many agreements carve out Israeli jurisdiction for interim relief. Indefinite confidentiality over genuine trade secrets is accepted, while three to five years is the norm for ordinary commercial information. Where the counterparty is an employee or a founder, Israeli labour case law narrows the restriction to what protects a real proprietary interest.

⚖ In Practice
  • Governing law: Contracts (General Part) Law 5733-1973; Sections 5, 6 and 13, Commercial Torts Law 5759-1999; Section 15, Contracts (Remedies for Breach of Contract) Law 5731-1970
  • Competent authority: Magistrates Court (Beit Mishpat HaShalom) for claims up to NIS 2.5 million; District Court (Beit Mishpat Mechozi) above that figure
  • Statutory damages: up to NIS 100,000 per violation without proof of loss (Section 13, Commercial Torts Law)
  • Interim relief: search and seizure orders under Chapter D of the Commercial Torts Law, typically heard within 24–72 hours of filing
  • Limits on scope: Israeli labour case law, led by LA 164/99 Frumer and Check Point Software Technologies v. Redguard, enforces restraints only where they protect a genuine proprietary interest such as a trade secret
  • Evidence that decides cases: the claimant must show reasonable measures were taken to keep the information secret, so marking, access logs and exit interviews carry real weight

From the full guide: NDA in Israel: A Complete Legal Guide to Non-Disclosure Agreements

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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

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