Government measures in key jurisdictions 4th edition - Flipbook - Page 68
Israel
Eligibility for unemployment benefits has been extended to 30.6.2021 for individuals who were
furloughed or dismissed, and who fall into one of the following categories:
•
Individuals whose eligibility for unemployment ended on or after 1.3.2020, or
•
Individuals whose eligibility for unemployment ended before 1.3.2020, and who stopped working
between 1.3.2020-30.6.2021, or
•
Individuals whose eligibility for unemployment ended in January or February 2020
Finally, although not immediately in the realm of employment, it is important to note that the
government has issued one-time grants to all citizens and residents of Israel, as follows:
•
750 NIS to all adults
•
An additional grant paid to parents of minors:
- 500 NIS for each child, up to and including the fourth child
- 300 NIS for each additional child after the fourth
•
Those who are eligible for national insurance benefits (such as supplemental security income or
alimony) are eligible for an increased grant of 1,500 NIS
•
Individuals whose yearly income in 2019 was above 649,560 NIS (gross) are ineligible for the grant
Insolvency
Israel’s insolvency legislation has not changed during the COVID-19 pandemic. However, during the
month of July 2020, the Israeli Ministry of Justice introduced a draft bill for new regulations, allowing a
Has the government company additional time to reach an agreement with its creditors. Under the proposed new
made any changes regulations, courts will have the option to order a stay of proceedings for a period of up to three
months for a company experiencing difficulties, prior to declaring such company insolvent. This threeto insolvency
month period will allow the company to reach an agreement with its creditors, while simultaneously
legislation?
prohibiting the withdrawal of funds and assets from the company. However, the new regulations have
yet to be adopted, and it is unclear if and when they will be.
Furthermore, additional reliefs were introduced during this period, such as a reduction of the monthly
payments due by debtors under receivership and temporary exemptions from these payment
obligations. However, all such reliefs were provided on a case-by-case basis, and not as a change to
legislation.
Contractual
Issues
The Israeli government has not implemented any specific measures to reinforce contracts. In Israel,
the "freedom of contract" principle is very dominant. Thus, any enforcement of contracts is
considered a commercial issue between the parties.
What measures
have been taken
to reinforce
contracts?
However, a special inter-office governmental team has issued a legislation proposal with respect to
specific arrangements regarding certain industries including the entertainment industry, event halls
as well as private kindergartens, while noting that they do not believe that they should interfere with
all other industries. They recommended that all parties in other industries apply the “good faith”
principle when looking to enforce or amend a contract.
Furthermore, while the force majeure principle exists under Israeli contract law, it has been greatly
minimized by the courts, and is even deemed by some as a dead letter. A recent decision of the Tel
Aviv district court has reinforced this position, as the court failed to see the COVID-19 pandemic as a
force majeure event. However the court did qualify this statement by noting that this position may be
overturned in other cases in the future. That said, the parties are free to agree on any force majeure
provisions between themselves, and in such event the contractual agreement would prevail.
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