Israel's National Labor Court has held that receiving a dismissal letter is, as a rule, a special event that departs from the normal work routine, so a mental injury at work caused by it may be recognized as a work accident by the National Insurance Institute (Bituach Leumi). Anyone who was dismissed and developed anxiety or depression as a result should seek medical treatment without delay, document it, and file a claim with the National Insurance Institute within 12 months of the date of the injury.
Itamar Levin reported the judgment on Bizportal on November 12, 2026. The panel consisted of Judges Sigal Davidov-Motola, Hani Ofek-Gendler and Hadas Yahalom, together with the public representatives Ehud Manor and Yael Tzafron. According to the report, this is the first time the National Labor Court has so held.
What happened in the case
According to the report, the appellant worked for about 15 months as a maintenance manager at a complex that included a hotel, a mall and a parking garage, and was dismissed in 2020 after a pre-dismissal hearing (shimua) in which complaints were raised about his performance. He said that at the moment of dismissal he felt heart palpitations and was sweating, and that afterwards he sank into depression and anxiety. His claim against the National Insurance Institute was rejected by the Jerusalem Regional Labor Court.
The Regional Labor Court found contradictions in his testimony and gave weight to the fact that the psychiatrist's letter he submitted was written only about 15 months after the dismissal, with no supporting medical records and without the doctor testifying. It also noted that his employment was short and that this was not his first dismissal. It concluded that the dismissal had not caused him mental stress.
What the National Labor Court held
The National Labor Court allowed the appeal and ordered the appointment of a psychiatrist to examine whether the appellant suffered a mental injury because of the dismissal. The starting point is the test set in case law for recognizing an event at work: a departure, even to some degree, from the normal work routine. According to the court, receiving a dismissal letter clearly meets that test, since it is not an event an employee encounters in the ordinary course of the day. Claims of this kind examine two elements: the event itself, assessed objectively, and its effect on the particular employee. According to the report, the court held that the objective element is clearly met here.
The more significant holding for employees concerns proof. The court made clear that where the event itself is clear, the evidence required on the subjective aspect may be relaxed, meaning the question of how the dismissal affected the employee personally. It also held that the reason for the dismissal, whether a fair hearing was held, whether the employee was warned in advance and how long he worked do not change the conclusion. The National Insurance Institute was ordered to pay costs of NIS 7,500.
This does not mean that every dismissed employee is entitled to a benefit. Recognition still depends on proof of a real mental injury and of a causal link between it and the dismissal letter, and in this case the question now moves to a medical examination. The deadlines also still apply, and someone who waits a long time may find it harder to prove the link between the dismissal and his or her condition.
Mental injury at work: what it means if you were dismissed
The National Insurance Law defines a work accident as an accident that occurred in the course of work and as a result of work. Where an injury is not caused by a blow or a fall, the case law examines whether there was an unusual event. For a heart attack or a stroke, for example, Kol Zchut explains that an acute, one-time and unusual event at work is required, and that working regularly in a stressful environment is not enough. The judgment makes clear that a dismissal letter is such an event, so someone whose mental health deteriorated after a dismissal does not need to prove that the dismissal was unlawful.
Recognition has financial consequences. According to the National Insurance Institute website, work injury benefits (dmei pgia) are paid at 75% of the income on which insurance contributions were paid in the three full months before the month in which work stopped because of the injury, for up to 91 days, and up to NIS 1,314.25 a day from January 1, 2026. If the absence lasts longer or a disability remains, a claim to determine a work disability rating can also be filed.
The claim against the National Insurance Institute is separate from the employee's rights against the employer. Someone who was dismissed without a proper pre-dismissal hearing, or who did not receive full severance pay, can sue the employer in the Labor Court, and the two proceedings do not contradict each other.
What to do now
The practical lesson of the case is documentation. In the Regional Labor Court, it counted against the appellant that the only medical document he submitted was written more than a year after the dismissal. Anyone who experiences mental distress after a dismissal would do well to see the treating physician or a psychiatrist close to the event and describe what happened and when, so that the link between the dismissal and the symptoms is recorded in the medical file from the outset.
Keep the dismissal letter, the invitation to the hearing and the correspondence that preceded them: they establish the date and circumstances of the event. According to Kol Zchut, entitlement to work injury benefits also requires a medical certificate of incapacity for work from the treating physician or a work injury clinic, so it is wise to ask for one at the first visit.
According to the National Insurance Institute, a claim for work injury benefits must be filed within 12 months of the date of the injury, and a late claim may harm entitlement. If the claim is rejected, it can be appealed to the Regional Labor Court within 12 months of receiving the written notice. The page on work accident lawyers explains how such a claim is built and the difference between a claim against the National Insurance Institute and a claim against the employer.
If you were dismissed and your mental health suffered as a result, or if the National Insurance Institute rejected your claim, you can contact the firm for a review of your specific case, both against the National Insurance Institute and against the employer.
Questions and answers
Can a mental injury at work be recognized as a work accident in Israel?
Yes, when it was caused by an event that departs from the normal work routine and there is a causal link between the event and the injury. According to a Bizportal report of November 12, 2026, the National Labor Court held that receiving a dismissal letter is such an event. Ongoing stress in a stressful work environment is not, on its own, recognized as a work accident (Kol Zchut).
What is the deadline for filing a work accident claim with National Insurance?
According to the National Insurance Institute, a claim for work injury benefits is filed within 12 months of the date of the injury, and a late claim may harm entitlement. A rejection can be appealed to the Regional Labor Court within 12 months of receiving the National Insurance Institute's written notice.
How much are work injury benefits?
According to the National Insurance Institute website, 75% of the income on which insurance contributions were paid in the three full months before the month in which work stopped because of the injury, for up to 91 days, and up to NIS 1,314.25 a day from January 1, 2026. The employer pays for the day of the injury itself.
Source: Bizportal (Hebrew), 12.11.2026; Kol Zchut: Work accident (Hebrew), checked 13.11.2026; Kol Zchut: Work injury benefits (Hebrew), checked 13.11.2026; National Insurance Institute: Daily rate of work injury benefits (Hebrew), checked 13.11.2026; National Insurance Institute: Payment period of work injury benefits (Hebrew), checked 13.11.2026; National Insurance Institute: Deadline for filing a work injury benefits claim (Hebrew), checked 13.11.2026; National Insurance Institute: Appealing a rejected work injury benefits claim (Hebrew), checked 13.11.2026
First published in Hebrew. Read the Hebrew original