As a service provider in Israel, you’ve probably experienced turning away a client because you’re fully booked, only to have another client cancel on you at the last minute. Or you’ve travelled to meet a client, rearranged your schedule to accommodate them or prepared for your appointment, only to have the client send a message that they can’t make it after all. These scenarios are annoying, but worse, they can cost you money. Protect your business (and your sanity) with a clearly defined cancellation policy.
Israeli law and cancellations
In most cases, to cancel a service transaction (like travel, courses and memberships), Israeli law requires that the cancellation be done within 14 days of signing and at least 14 business days before the date the service is supposed to start. When a client cancels under their statutory right, you can only charge up to 5% of the transaction value or 100 NIS, whichever is lower, as a cancellation fee.
Last-minute cancellations don’t legally entitle the client to a refund, but that doesn’t mean that they won’t expect one. You need to let clients know when they book what happens if they cancel. If you do charge a cancellation fee, keep it reasonable to avoid complaints.
Balancing short-term and long-term goals
When implementing a cancellation policy, it’s important to balance protecting yourself in the short-term with keeping clients long-term. Just because a client had to cancel doesn’t mean that they won’t come back to you at a later date, and you don’t want to torpedo that with a draconian cancellation policy.
Because every interaction with a client reflects on your brand, it’s crucial that all discussions are conducted politely, even if the client pushes back and you need to firmly enforce your policy.
You may want to take a deposit or full payment at booking, since it’s easier to keep money you already have than to convince a client to pay for a service they didn’t receive.
Tips for creating a cancellation policy
- Define what constitutes last-minute (generally 24-48 hours in advance)
- Decide whether you’ll keep the deposit, provide a partial refund or charge full-price
- Consider offering clients the option to reschedule instead of cancelling, or to get a credit for future services
- Clearly communicate your cancellation policy in writing before taking the booking
- Add a tick box that says “I agree to the cancellation policy” to your contract or booking form, so clients can’t claim ignorance
- Prepare to be flexible in situations when the cancellation was caused by illness, a death in the family or an unexpected simcha
- Keep copies of signed agreements, cancellation messages and refund transactions, in case there’s ever a dispute
A clear, fair cancellation policy isn’t just about protecting your time and income – it’s also about setting expectations and building trust. When clients know exactly what to expect, they’re more likely to respect your time, and less likely to feel frustrated if plans change. By putting your policy in writing, handling cancellations professionally and leaving a little room for empathy, you’ll safeguard your business while maintaining the kind of reputation that keeps clients coming back.
