Three months of conflict in Gaza have placed Israeli business owners in a perplexing situation. On one hand, they are required to maintain operations while providing emotional support to employees called up for reserve duty in the military. On the other hand, the law prohibits them from dismissing employees who serve in the reserves for several months.
Nevertheless, numerous business owners are encouraging their employees to return to work, as observed by the Israeli economic newspaper "Globes".
A More Complex Reality
Igal Plitman, former president of the Israeli Labour Court and currently a special advisor to a law firm, states that "An employer cannot pressure a man or woman performing reserve duty to return to work." However, he notes that reality is much more complicated.
He adds that an employer can request the employee to ensure long-term availability and to be absent from reserve duty under special circumstances, as long as their role is not essential to the military's needs during combat.
According to the newspaper, business owners will never concede to exerting direct pressure on an employee to return from reserve service. Instead, they tend to show flexibility and acknowledge the ethical burden imposed on them.
The article indicates that the damage to business owners is substantial, as grants do not cover the full cost of these absent employees, from paying social security contributions to losses incurred by the worker's absence.
Employer Pressures
Often, employers make it clear to employees that they are needed, exerting some pressure on them to return, either indirectly or overtly. Consequently, some reservists opt for a "hybrid duty," a model combining work and reserve service in the Israeli military, and some are paid to do so, the newspaper states.
"Globes" quotes an unnamed political figure's spokesperson as saying that since her conscription in the reserves, she tries to respond to her employer and work as a reservist simultaneously. She adds that her employer considers her absent from the team, "She doesn't exert pressure… but the message is very clear: she wants me to finish the service and return."
Conversely, another employee expressed that the pressure from her employer pushed her to work during her reserve duty, which made it difficult for her to cope.
An employee at a startup company says, "They hired someone to replace me during this period and asked me to assist her, and they continued to contact me daily regarding work matters, despite my reserve duty."
Working with a Rifle
The newspaper recounts another employee who is an officer stating, "With no other option, I come to work once a week in my spare time, in uniform with my rifle, to offer assistance, and the pressure [on me] started."
He explains that the pressure has increased over time since being called up for reserves. "My role in the reserves is very important to me. If I can't work at the same time, unfortunately, I won't have a job to return to."
Some employees faced situations that compelled them to reevaluate their positions. A senior executive in the non-profit sector says she left her job due to the situation. "I was torn between the workers. I thought of resigning even before, and the situation gave me a push. I faced much pressure to return to work, and I adjusted the system for this, but in the end, I decided to finish working there," as reported by the newspaper.
The Tango Dance
The director of organizational development and consulting at "BDO" – which combines military reserve service and work – says that this combination is extremely complicated. "It's like a tango dance that must be performed on the move… There is fatigue coming from these switches."
"Globes" anticipates an expansion in the use of the "hybrid army" model, noting that the Ministry of Finance has realized that the new reality requires employees to be away from work more than before and has begun drafting a plan.
Accountant Nimrod Ratner states, "Due to the sensitive situation, legislation is being promoted that would provide a solution such as extending the period of protection against dismissal after reserve duty."
According to an analysis by the Aaron Institute for Economic Policy at Reichman University, the economy will not return to full workforce strength until the end of the following year.
War Spurs Wage Increases
In this context, the average wage in Israel jumped by 10% in November to 12,651 shekels ($3,413.50), on an annual basis, as reported by the Israeli Central Bureau of Statistics.
In October, the average wage was 12,492 shekels ($3,370.60), which is a 6% increase compared to October of the previous year. Excluding inflation, the real increase in the average wage was 2.2%.
The economic newspaper "Globes" partially attributes the rise in average wage to the increase in people on unpaid leave due to the war, most of whom are low-wage earners.
According to official figures, the number of jobs in the Israeli economy decreased by 1.2% in October, and the war led to a reduced job supply, but the average wage continued to rise.
The number of paid jobs decreased even further in November and was 6.6% lower than the same month in 2022.
