The 21st century labor market is dynamic and complex, with constant changes driven by changing social norms, new technologies, the (sometimes conflicting) interests of employers and employees, and trends on the global marketplace and in the Israeli labor market. This complex reality requires constant adjustments by businesses and companies. The labor practice of Yigal Arnon & Co. has extensive experience in advising and representing employers regarding all aspects of employment law. The firm advises its clients, including Israeli and foreign employers, how to operate in this constantly changing reality. Our Labor Law group is at the forefront of legal know-how and practice in Israel, offering our clients practical and creative solutions for the challenges inherent to the employment relationship. The firm’s clients include multinational companies with thousands of employees, as well as early-stage companies with a one-digit payroll; hi-tech companies in various fields such as software and biotechnology, along with telecommunication companies, traditional industries, construction companies, service companies, government companies, and others. The firm guides its clients and works with them on a regular basis with regard to all labor matters, including drafting of labor agreements, senior employee agreements, termination agreements, confidentiality and intellectual property rights agreements, retention agreements, employee loans, etc. We have many foreign clients, whom we advise about necessary adjustments to their standard employment agreements, to Israeli labor requirements. For them, we also serve as their “eyes on the ground”. We consider it part of our duty to update these foreign clients about legal developments and about relevant events that might influence the employment of staff in Israel. Our practice has extensive experience with labor-related matters in the context mergers and acquisitions or structural changes, and in other transactional frameworks. We specialize in drafting various employee compensation and incentive plans, such as bonus plans, option plans, equity-based compensation, etc. The firm assists clients in restructuring and downsizing scenarios. We walk them through these complex processes, starting with the planning and decision-making stages, through to execution and subsequent regrouping. Our Labor group guides the clients how to carry out the process in the best way from the legal perspective and such as to support the organizational goals of the enterprise, how to handle challenges that arise along the way, and how to proceed once the change has been completed.  The Labor group at Yigal Arnon & Co. assists in all of the transactions in which the firm advises, and counsels our clients on the numerous employee-related aspects that exist in every deal, such as transfer of employees between employers, drafting employment agreements and specific provisions, employee retention agreements, consultation about specific employees and unique situations. Given the dynamic reality in this sphere, we have developed expertise in privacy laws in the labor context, such as workplace monitoring of employees and their electronic communication (emails), collection and protection of employee information, registration of databases with employee information, and other such sensitive subjects. The firm advises clients from the day before they hire their first employee and through to the stage of routine communications with labor unions and drafting collective bargaining agreements.

Employee Compensation and Option Plans

The firm counsels companies in various stages, ranging from companies under formation to mature multinationals, helping them to draft, adopt and implement compensation and incentive plans according to their different and evolving needs. The firm is well-experienced with all the aspects of drafting and implementation of employee incentive plans, including options plans and equity-based bonuses. Our expertise in corporate and securities law and in tax and labor law, help us define the optimal incentive mix for employees of local and multinational companies. In the latter case, we sometimes use our good connections with leading law firms in other jurisdictions and work together with them to provide multinational clients with the optimal package. We advise on matters such as hiring, severance, termination and other labor issues, including in the context of public offerings, M&As, joint ventures, internal restructuring and spinoffs. The Firm recognizes the necessity for a balance between a successful employee incentive plan that allows employees to grow at the workplace, and the flexibility that is required in order to manage a profitable and successful business. We therefore offer clients advice that is tailored to their needs, taking into account different elements such as the client’s size, business sector, goals and policy.


The firm specializes in all labor-related litigation, representing employers in the full range of employee claims. We handle protective labor law issues, complex disputes between employees and former employees, labor law class actions, mediations and arbitrations and motions for interim injunctions restricting employment or severance. We represent our clients before all relevant tribunals in various proceedings, such as permit applications (permit to dismiss employees who belong to a protected population segment; special work permits), appeals, etc. The firm assists clients in compliance inspections of the Ministry of Economy, and offers ongoing compliance advice, such as with regard to the Law for Enhanced Enforcement of Labor Law. Our unparalleled class action skills also come into play in the Labor Court, where we represent clients in labor rights class actions.

Collective Bargaining Agreements

The firm consults companies during the unionizing stages of their employees, and in ongoing communications with the union, including collective bargaining.


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