112 THE US-ISRAEL | Legal Review 2025/26 work. Once this threshold was met, the burden shifted to the employer, which failed to establish legitimate and proportionate justification. The court ordered payment of wage differentials for the relevant period. These decisions reinforce a consistent judicial approach: once a prima facie wage gap is shown, employers must justify it with evidence rather than general assertions. Age Discrimination Age discrimination also featured prominently in 2025. In the Kalner case, the Labor Court examined the dismissal of a long-serving civilian flight instructor following a safety incident. Although the role involved sensitive safety considerations, the court found that age played an improper role in the decision-making process. The termination was procedurally flawed, with evidence indicating that the outcome had been predetermined and that contemporaneous materials contradicted claims of professional decline. The ruling underscores that age alone cannot justify termination without a proper, evidence-based process. Privacy and Monitoring in the Workplace Employee privacy emerged as a central regulatory theme in 2025, driven by legislative reform and judicial interpretation. Workplace Surveillance In the Elkaner case, the National Labor Court addressed the use of cameras in the workplace. While installation alone does not constitute a material deterioration of working conditions, the court emphasized that employers must satisfy a proportionality analysis, including identifying a legitimate purpose, assessing the scope of the privacy infringement, and ensuring transparency and appropriate employee notification. The judgment highlights the need for clear internal policies governing monitoring technologies. Amendment 13 to the Privacy Protection Law Amendment No. 13 to the Privacy Protection Law, which entered into force in August 2025, significantly expanded employers’ obligations regarding the collection and processing of personal data. Employers must now provide detailed privacy notices addressing, among other matters, the consequences of refusing to provide data, details of the database controller, and employees’ rights to access and correct information. For many organizations, compliance requires a comprehensive review of data governance practices, including appointment of a data protection officer where applicable. Sexual Harassment Prevention and Complaint Handling Sexual harassment prevention continued to evolve in 2025 through legislative amendment and case law. “For employers operating in Israel — including multinational companies, service recipients, and investors — the legal environment is characterized by heightened procedural expectations.”
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