Although the Israeli labour market may not be as regulated as many other countries around the world and in particular in Europe, there are nevertheless different laws, practices and customs in Israel which the Global business will need to understand. An example would be the popular concept of a Manager’s Insurance Fund. This allows both employer and employee to pay into the Fund over time. The Fund is then paid out as severance compensation to the employee on termination. This effectively reduces the employer’s liability for payments due on a termination. Labour law is essentially governed by legislation and regulations. In addition, the law of custom and practice (the continued conduct of an employer and employee over a period of time) is well recognised under Israeli labour law.