Is it necessary for the employment agreement to be bilingual with Hebrew taking precedence in Israel?

Our employment agreement template for Israel is written in English only.

Can seniority be recognized in employment agreements in Israel, and if so, in what ways can this be reflected in employment agreements?

In Israel, seniority can be recognized in employment agreements for two primary purposes:

• Notice period
• Severance pay

It is advisable to draft the terms related to seniority on a case-by-case basis within the employment agreement.

Can variable compensation be included in the employment agreement in Israel, or should it be outlined in a separate Variable Compensation Plan?

In Israel, variable compensation should not be directly included in an employment agreement. Instead, the employment agreement should refer to employer plans separately and mention that these plans are subject to change periodically. The Variable Compensation Plan is then attached to the employment agreement as an appendix. This approach allows the employer to modify the compensation plan without requiring the consent of every supported employee, which would be necessary if the plan were incorporated directly into the terms of the employment agreement.