In short
Who is entitled to severance pay in Israel?
An employee dismissed after at least one year with the same employer, and in some cases an employee who resigned, for example because of a material worsening of working conditions. Severance is generally one monthly salary per year of work, based on the last salary.
Who Is Entitled to Severance Pay
Under the Severance Pay Law, 5723-1963, an employee who is dismissed after working at least one year for the same employer or at the same workplace is entitled to severance pay. The rule is one month's salary for each year of employment, based on the last salary, and proportionally for part of a year.
Many workplaces make contributions to a pension fund or a severance fund. It must be checked whether the contributions cover the full severance pay, and whether an arrangement under section 14 of the law applies, under which the contributions replace severance pay.
Resignations That Carry Severance
An employee who resigned is also entitled to severance pay in situations the law lists, and is treated as having been dismissed. The most common is a material deterioration in working conditions, or other circumstances in which the employee cannot be expected to continue working. In such cases it is important to warn the employer in advance and give the employer an opportunity to fix the problem.
The law also grants severance in other situations, for example resignation for health reasons, relocation in the circumstances set out in the law, or resignation by a parent within a certain period after a birth in order to care for the child.
The Pre-Dismissal Hearing
Before a dismissal, the employer must hold a hearing (shimua): notify the employee in advance and in writing of the claims against him or her, allow time to prepare and to present arguments, and consider them with an open mind before deciding. This duty was established in the case law of the labor courts.
A dismissal without a proper hearing may entitle the employee to additional compensation. At the same time, notice pay, vacation redemption, recuperation pay and unpaid wages are checked, because each is a separate right.
What the service includes
- Checking entitlement and calculating severance pay
- Reviewing pension and severance contributions
- Resignation treated as dismissal
- Preparation for a pre-dismissal hearing
- Claims in the Labor Court
When to contact us
- You received a summons to a pre-dismissal hearing
- You were dismissed and did not receive full severance pay
- Your working conditions deteriorated and you are considering resigning
- Your employer did not make the required pension contributions
What to bring to the meeting
- The employment contract
- Pay slips from the last year
- Pension fund statements
- The hearing summons or the dismissal letter
Severance Pay and Pre-Dismissal Hearings throughout Israel
The firm represents clients from all over Israel: Jerusalem and the Shfela, Be'er Sheva, Ashdod and Ashkelon, Haifa and the North, the Sharon and Gush Dan. Meetings take place at our two Modiin branches, at the WE Towers branch in Tel Aviv or by video call, and documents can be sent in advance on WhatsApp. We represent clients in the courts, the Labor Courts and before planning committees throughout Israel. How we work with clients across Israel.
Frequently asked questions
How much severance pay am I entitled to?
Under the Severance Pay Law, one month's salary for each year of employment, based on the last salary, and proportionally for part of a year. The pension contributions and whether a section 14 arrangement applies are also checked.
I resigned. Am I entitled to severance pay?
In the situations the law lists, yes: for example a material deterioration in working conditions, health reasons, or resignation by a parent within a certain period after a birth. Where conditions deteriorated, it is important to warn the employer in advance.
What should happen at a pre-dismissal hearing?
Advance written notice of the claims, reasonable time to prepare, a genuine opportunity to present your arguments, and consideration of them before the decision.
How long do I have to sue for severance pay?
Monetary claims in employment law are generally time-barred after seven years under the Prescription Law. Some rights, such as recuperation pay, have shorter periods.
