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Employment in Israel

The Termination Process

The process of firing an employee in Israel is set out clearly by the law, and the termination process seeks to protect the rights of the employee. 

An employer can’t fire an employee without a hearing (shimua). The employer will send a notice to the employee inviting him or her to a hearing. This notice must include the reasons that the employee is being fired and be sent with enough advance notice for the employee to prepare for it. The employee can come alone to the meeting or bring a lawyer or other representative. He can refute the claims and make the case for his continued employment. Alternatively, he can waive his right to a hearing, if he so chooses.

If there is a legal reason why the employee can’t be fired, such as pregnancy or pending army service), this is the time to bring that up.

The hearing is not meant to be a formality, and the employer is supposed to seriously consider the employee’s argument before making a final decision. Nonetheless, most people who have attended a termination hearing do end up getting fired.

After the company has decided to go ahead with termination, a written notice will be sent detailing the date on which the employment is terminated. An employee who has worked at the company for at least a year is entitled to a month’s notice.

Within 14 days of termination (or 7 days after the employee requests it), the employer must send a letter of termination which states the start and end dates of employment. 

An employee who has been at this workplace for a year or more is entitled to severance pay upon being fired. Severance is one month’s salary for one year of work, unless the employee’s contract promises more. If the employer fires an employee shortly before the end of the first year of employment, this is likely to be seen by the labor courts as an attempt to avoid paying severance. If this happens, the fired employee should seek legal counsel.

If the employee has unused vacation days, the employer is required to pay a regular day’s salary for each one.

Now is the time for the employee to find out whether he is eligible for unemployment from Bituach Leumi, and if so, to apply for it. He should also tweak his CV and begin the search for new employment.