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As Knesset moves to pay workers furloughed by war, some who returned under fire are passed over

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30.03.2026

Four weeks into the war with Iran, private sector workers who were put on furlough due to security restrictions are hoping to finally get some clarity regarding whether and how they may be paid.

However, critics say the plan set to pass the Knesset Monday does not go far enough and punishes employees who returned to work under missile fire a week into the war, when restrictions were eased in a bid to jumpstart the economy.

As in previous rounds of war, the government has formulated a plan to compensate some employees put on unpaid leave, and a compensation framework to provide partial financial relief to businesses whose revenues have been hurt by the ongoing war with Iran.

The measure for employees is expected to pass its final readings on Monday, with initial benefits expected to be paid out to employees in mid-April at the earliest, depending on the submission of claims, according to Finance Ministry estimates.

With the Knesset going on recess starting Wednesday, the plan for businesses may only get voted on following Passover, which ends April 8, according to a Finance Ministry spokesperson.

In the meantime, the delayed legislative process has left both employees and businesses in a state of uncertainty.

“This is a substantive delay and not merely a technical one, as it creates great uncertainty in the labor market, as employees and employers find themselves operating in a fog,” said Manpower Group Israel country manager Lior Latvik. “Particularly affected are employees who do not know if and when they will be able to claim their wages, and are left without a clear safety net at the most critical moments.”

“A clear, rapid, and fair framework is required that will provide certainty to employees, allow employers to manage their workforce responsibly, and help the economy cope with current challenges and return to growth,” said Latvik.

In the first week after Israel and the US jointly launched an offensive against Iran on February 28, most of the economy, except for essential businesses, was shut down. While Home Front Command restrictions for workplaces were eased on March 5 to allow the economy to get back on its feet, some businesses remain shut, particularly in the retail sector, and many workers have been unable to fully return to the workforce because schools in most places have stayed closed under continuing missile fire.

“The business sector is the one producing the medicines, food, and military equipment that allow us to live in Israel,” said Israel Manufacturers’ Association head Avraham (Novo) Novogrotzky. “Despite many challenges,........

© The Times of Israel