Labor Law

What happens in an Israeli labor claim if the employer kept no attendance records?

The missing paperwork works against the employer. Section 26B of the Wage Protection Law 5718-1958 shifts the burden of proof onto an employer who failed to keep the attendance records required by Section 25 of the Hours of Work and Rest Law 5711-1951. Where the records are absent, the Labor Court accepts the employee's account of the hours worked unless the employer disproves it, subject to a statutory ceiling of 15 overtime hours a week or 60 a month. The rule applies to foreign nationals working in Israel on exactly the same terms as to Israeli employees, and it cannot be contracted away.

Section 25 of the Hours of Work and Rest Law obliges every employer to record actual hours worked by an automatic, electronic or otherwise verifiable method, and to have the record approved rather than reconstructed after the fact. Section 26B was added to the Wage Protection Law by Amendment 24 in 2008 precisely because employees almost never held the evidence needed to prove their hours, while the employer held all of it and had an incentive to keep nothing. The Regional Labor Court applies the provision as a practical presumption. The employee sets out a coherent account of the hours claimed, supported by whatever contemporaneous material exists, and the employer must then produce compliant records or credible contrary evidence. Silence at that point normally decides the claim.

For a foreign employee the message is to preserve the ordinary traces of a working day, because Israeli courts routinely accept them. Entry badge logs, timestamped emails and messages, published rosters, project management timestamps and colleague testimony have all been used to build the necessary account. It is also worth understanding that failing to keep hours records and failing to issue lawful payslips are separate breaches with their own consequences, so a single claim can combine unpaid overtime with damages awarded without proof of loss. The presumption does not manufacture an entitlement where none exists: an employee genuinely holding a senior management or trust position may fall outside the overtime regime altogether, and a validly structured global salary can meet part of the obligation. The wider framework of Israeli employment law decides which of those applies.

⚖ In Practice
  • Governing law: Section 26B, Wage Protection Law 5718-1958, added by Amendment 24 (2008); Section 25, Hours of Work and Rest Law 5711-1951
  • Competent authority: Regional Labor Court (Beit Din Ezori LeAvoda), with appeal to the National Labor Court in Jerusalem
  • Ceiling on the presumption: 15 overtime hours per week or 60 per month; hours claimed above that ceiling must still be proved by the employee in the ordinary way
  • Overtime rates: 125% of the hourly wage for the first two overtime hours in a day and 150% thereafter, applied to the hours the presumption establishes
  • Additional exposure: failing to keep hours records and failing to issue a lawful payslip are separate breaches that can attract damages without proof of loss, in the region of NIS 5,000 per breach
  • Limitation: seven years for a wage claim, so employees should preserve badge logs, messages, rosters and payslips for at least that period

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


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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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