Employer of Record in Israel
Skuad’s Employer of Record Israel (EOR) solutions make business expansion to Israel easy and hassle-free. Our unique Global HR platform allows companies to hire exceptionally talented employees in Israel, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances.
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Israel At A Glance
Currency: New Israel Shekel (NIS/ ILS)
Capital city: Jerusalem
Languages spoken: Hebrew (official), Arabic, English
GDP: 3.5% (2019)
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Employment In Israel
For every country's business standards, there are a set of rules and conduct to be followed by its citizens and foreign nationals. Therefore, when expanding businesses in Israel and reaching out to its global network, one needs to be familiar with the employment laws while taking in new employees on board. The laws could be more or less the same as in most countries, with a few differences in some cases.
Navigating the Israeli employment laws can be challenging. Contact Skuad to ensure full compliance with the Israeli employment laws today.
Contractors Vs. Full-Time Employees
In Israel, contract-based employment is about 5-10% of all employment types in the labor market while full-time employment is the prevalent employment type.
Full-time employment involves the provision of statutory sick pay, statutory maternity and paternity leaves, minimum notice periods, legal protection from unfair dismissal, statutory redundancy pay, time-off for emergencies, and flexible work requests to employees recruited by organizations in Israeli.
While a contractor in Israel are self-employed or working for a client. Contractors work on a project-to-project basis, pay their taxes, work for different clients simultaneously, and are not entitled to the benefits usually provided to full-time employees.
For this reason, people in Israel are more inclined to full-time employment as it provides attractive benefits and a higher level of job security in comparison with contract-based employment.
To know more about how Skuad enables organizations to hire full-time employees and contractors, book a demo with Skuad today.
Hiring in Israel
A popular means of hiring in Israel is by utilizing job portals such as Nefesh B'Nefesh, Israemploy, JobMaster, Jobnet, Janglo, Monster, Indeed, Google for Jobs, etc. On these platforms, the organizations place their available job positions for applications by qualified candidates. After this, the in-house recruiting personnels sort and select the candidates that fit their organization needs.
Undoubtedly, the process of handling hiring is challenging and time-consuming. However, with an Employer of Record platform like Skuad, organizations can easily hire and onboard contractors and full-time employees. To find out more about Skuad’s Global HR Platform, book a demo today.
Probation and Termination
The normal probation period in Israel is 3 months; The probation period can be extended to 6 months only when the worker does not have an active pension fund.
Termination of service
By a written agreement between the employee & the employer, the employment contract can be terminated as the fixed-term contract ends.
The conditions for terminating employment prematurely include dismissal, death, retirement, resignation, or expiration of the work contract. Severance pay is required to be given to the employee in case of dismissal. However, there are certain circumstances in which the dismissed employee is not entitled to receive severance, i.e., with cause. The retirement age is 67 and 62 years for male and female employees, respectively.
Israel's Labor Court handles terminations; the employer must invite the employee for a hearing with 2 days' notice. During the hearing, the management and the direct manager raises concerns and notes that the company is considering terminating the contract.
There must be a written termination letter along with the reasons for termination. The minimal statutory period for the dismissal and resignation of employees whose salaries are paid monthly are as follows:
● For the first six months of employment, it is one day
● From the seventh month, it is 6 days + additional 2.5 days for every month worked
● After the completion of the first employment year, it is 30 days
EOR solution in Israel
The Employers of Record (EOR) model is a smart solution for companies seeking to enter and expand in Israel fast and agilely. With the help of Skuad's Employer of Record solution, business entities abroad can quickly source and hire the right professionals as per the organization's requirements. Hired employees get onboard seamlessly, helping your business save up a huge percentage of hiring and onboarding costs. Skuad’s End-to-end solutions help manage employment contracts, process payroll and income tax, blend statutory benefits, and manage overall administration of the backend HR processes. Our platform works as a unified employment platform with automated workflows, digital signatures, employee payroll, contractor payout, and all types of compliance solutions. Book a demo today.
Outsourcing Employment Through an Employer of Record
When planning to expand your business in another country, it is important to decide whether you want to create your own team for hiring or hire a local entity familiar with the country's laws to help speed up the hiring process. Many businesses use outsourcing services like EORs and PEOs to hire employees in a new country. Skuad’s EOR solution provides such services to take care of hiring, payroll, compliance, etc., on behalf of your company.
To get started on your expansion journey in Israel, you can book a demo with us here.
Types of Visas in Israel
Israeli visas are the legal documents that approve your arrival and stay in Israel. You can come here for work, study, tourism, religious purposes, and more with varying visas for each. Israel has agreements with some close ally countries; with this, you don't need any visa if you stay for 90 days. Below are the different types of visas that you need to travel to Israel:
A foreign national relocating to Israel for work or business purposes will need to obtain a work permit & employment visa known as the B/1 work visa.
The process to get B/1 Visa
The process is simple; a complete application is submitted to the Ministry of Interior, Israel, stating the work intentions. The B/1 visa is issued to scientists, high-tech professionals, artists, and experts in their respective fields. The visa will be valid for 30 days of stay and work, and, in case of extension of employment, a work permit may also be required. This visa can be extended with proper renewal information. The Israeli Ministry gives you an option to apply for the same simultaneously with the visa application.
Work visa requirements
Here are the requirements for getting your visa application processed:
- Approval letter from the Ministry of Interior.
- Visa interview
- Medical certificate
- Verified certificate of good conduct
- Biometrics (fingerprints and photograph)
- Completed Israeli work permit visa application form
- Two passport-size photos
- Employer's hiring documents
Once in Israel, the employee needs to visit the immigration office and get his visa stamped to get access for 30 days. Extensions are then useful for up to a year and allow an employee to leave and enter Israel as many times as needed.
There is also a high-tech work visa which is again for professionals, and the process is similar.
To know more about Skuad, book a demo today.
Payroll & taxes in Israel
Payroll in Israel
Skuad is a global HR Platform that manages payroll and taxes for organizations. Through Skuad’s platform, employers can manage payroll and pay employees in their preferred currency, accurately and quick.
To know more about Skuad’s payroll platform, contact Skuad today
Taxes in Israel
Setting up payroll and taxes in Israel requires in-depth knowledge of the local policies and regulations, which comes with several risks and liabilities. Choosing Skuad for payroll outsourcing in Israel can ease your resources and make the entire process straightforward and legally compliant. Learn more about our payroll services here.
A company willing to set up a subsidiary in Israel needs to consider factors like the location, business goals, availability, cost, laws, and regulations of the city where the subsidiary will be set up.
Israel is a progressive country that has relaxed laws related to the incorporation of foreign companies. Your business will need to connect with the Income Tax Department and the National Insurance Institute to set up your business subsidiary. There are research grants of up to 20-50% of total approved expenditure by the Israeli government.
The process to set up your company as an LLC include:
● Submitting attorney verified company registration documents
● Filing documents with the registrar of companies within the Ministry of Justice
● Registering for taxes at the Ministry of Finance's Income Tax Department
● Registering for VAT at the Ministry of Finance's Customs and VAT Department
● Registering with the National Insurance Institute.
Undoubtedly, incorporating an entity can be challenging and time-consuming. However, with an Employer of Record like Skuad, organizations can build teams in Israel without setting up an entity or a subsidiary. To know more about Skuad EOR solutions, book a demo today.
Professional Employer Organization (PEO)
A PEO (Professional Employer Organisation) service allows companies to hire employees in Israel without setting up an entity. A PEO manages tasks for the employer like paying taxes, human resources, managing payroll, employee benefits, etc. which leaves the leadership of the company free to focus on the business goals.
Businesses willing to expand into another country must establish a legal presence in the country. Collaborating with a PEO firm will require the companies to set up a legal entity separately; however, when you partner with an EOR team you can legally start working and hiring employees in the country as it is already a legal employer.
Skuad offers EOR services to organizations. Skuad’s unified employment platform manages all HR-related functions, right from recruitment to termination of employees on a single platform. By partnering with an EOR like Skuad, you can build an efficient team of workers remotely while complying with the local laws. Skuad handles all the functions such as onboarding workers both full-time and contractors, managing their payroll and taxes, etc.
Book a demo and let us help you choose between our EOR solution and PEO services.
If you are looking to promote and expand your global network in Israel, working with Skuad’s EOR solution will make the process more straightforward and seamless. Israel requires no legal registration to initiate a payroll service. Skuad can help you with the supervision of your business here, along with managing your payroll, employees, and more. Handle the complexities of business expansion with ease and create a profitable business enterprise by making a global presence. Talk to Skuad’s experts today.