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The twenty-first century labor market is dynamic and complex, with constant changes driven by shifting social norms, new technologies, the (sometimes conflicting) interests of employers and employees and developing trends in the global and Israeli labor markets. This multilayered reality requires businesses to adjust constantly.

Understanding this, many companies have come to rely on the top-ranked Labor Law Group of Yigal Arnon & Co., which is at the forefront of labor law practice in Israel. We have decades of experience in advising employers, in Israel and abroad, on all aspects of Israeli employment law—and on how to successfully operate in this always shifting legal landscape.

Our Labor Law Grouprepresents a wide range of clients, including:

  • Multinational companies with thousands of employees
  • Early-stage companies with a one-digit payroll
  • High-tech companies in fields such as software and biotechnology
  • Telecommunications, construction and service companies
  • Government entities
  • Manufacturing companies with organized work forces

We work with our clients on a full range of matters—everything from employee loans to drafting labor, senior employee, termination, retention, confidentiality and intellectual property rights agreements. 

We assist our many foreign clients in adjusting their standard employment agreements to comply with Israeli labor law requirements. We also serve as their eyes on the ground, updating them about legal developments and about events that might influence the employment of staff in Israel. 

Guidance in Business Transactions

The Labor Law Group at Yigal Arnon & Co. assists in all of the transactions in which the firm advises, and counsels our clients on the numerous employee matters that arise in each deal, such as handling the transfer of employees between employers and drafting employment and employee retention agreements. 

We also have wide-ranging experience with labor matters in the context mergers and acquisitions or other structural changes. We specialize in drafting employee compensation (including retention and holdback arrangements) and incentive plans, including bonus plans, option plans and those involving equity-based compensation. Furthermore, we assist in restructuring and downsizing scenarios, walking clients through everything from the planning and decision-making stages to execution and subsequent regrouping.

Importantly, we also have a demonstrated expertise in applicable privacy laws. This includes advising clients on how best to approach the workplace monitoring of employees and their electronic communication (texts and email), the collection and protection of employee information, the registration of databases with employee information and other sensitive subjects. In our transactions-related guidance, we begin advising clients before they hire their first employee. Later, we counsel on routine communication with labor unions and on the drafting of collective bargaining agreements.


Yigal Arnon & Co. has a specialization in labor-related litigation, and we represent 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, among others. We also represent our clients before all relevant tribunals, in regard to permit applications (permits to dismiss employees who belong to a protected segment of the population and special work permits for work on the Sabbath or for the hiring of non-Israelis, for instance) and appeals. 

Our team also 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. Yigal Arnon & Co.’s unparalleled skill in handling class actions also comes into play in the Labor Court, where we represent clients in labor rights class actions.

Collective Bargaining Agreements

Companies also call on Yigal Arnon & Co. during the unionizing process, including in ongoing communications with unions and in collective bargaining.

Employee Compensation and Option Plans 


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