Most of the terms of employment are set not by law, rather by collective negotiating, thereby determining that the collective agreement is the basis for employee’s rights and duties.

The arrangements in collective agreements can be best characterized by the fact that they are not uniform. In each collective agreement one can find a different arrangement which is the fruit of collective bargaining. From the non uniformity of rights in collective agreements one can learn that not only are the span of rights different , but there are large groups of employees who do not share the same rights.

So, what is a collective agreement ?
They can be effectively divided into 2 types:
1) General Collective agreements
These are reached & signed by organizations that represent factoriesemployers in a certain field (such as: construction, textiles, diamonds, hotels, electronics, etc.) or in all fields (cost of living increase, travel expenses, Havra’a payment) and the liason office of general organizations and the worker’s union (histadrut) that represents the employees in a certain field or sector as well as the government (usually the Finance ministry).
2) Special Collective agreements
These apply to a certain employer and are signed by both the management of the employer and the worker’s union that represents the employees of that employer.

Some collective agreements get issued as a expanded regulations order by the minister of Labor, thereby becoming mandatory for every employer in the State of Israel.
A few examples of this are: travel
reimbursement to and from work, cost of living increase.

When a collective agreement is signed it binds all employees and an employee cannot say that he disagrees and didn’t approve it. That is why there are worker’s unions.

Not always does a collective agreement define the terms of employment. Frequently Small or private employers or where personal contracts are used, the contracts define the terms of employment, However, it should be noted that the personal contract cannot diminish or contradict the rights defined by law or by an expanded regulation order or collective agreement that may apply to the employer due to the field in which he operates. In short, the personal agreement cannot violate the labor laws of the State of Israel or the expanded regulation orders of collective agreements which are treated as labor laws. The personal agreements can however improve the terms in the law or collective agreement.

Even if a personal contract specifies explicitly terms that diminish the terms/rights defined by law, it becomes null and void, even if an employee signs it.

In small places of employment, it was customary to have work agreements based on verbal agreements, which would be always hard to prove. In such cases the law provides the minimum.

Since Jan 2008, when the section 24 of the protection of wages law came into effect, making mandatory written notification to all employees describing their terms of employment and specifying what needs to be written on this notification, verbal contracts have no place anymore.

see my blog post on correction 24:

and the blog post on “what needs to be included on my payslip” :