When a job isn’t working out and both sides know it, you might have the option to quit or to be fired. Here’s what you need to know about the laws attached to each path:
| Termination | Resignation |
| The employer must notify the employee in advance (the number of days is dependent on the length of employment). | The employee must give advance notice (also dependent on the length of employment). |
| The employee may be eligible for severance pay (usually after at least a year of employment) | The employee is only eligible for severance if the resignation was for reasons such as deterioration of work conditions, moving far away, staying home to care for a baby etc. |
| The employer must go through a legal process of termination, including offering a hearing and providing a reason for the firing | The employee does not need to provide a reason for resignation |
| The employee may be eligible for unemployment payments immediately | The employee is not eligible for unemployment right away and generally has to wait 90 days |
Your unemployment and severance eligibility are obviously big factors in making this decision. If you’re not eligible for either, you may prefer to resign. This is because resigning often feels better than getting fired and is easier to explain in future job interviews. But if you are eligible, you will be leaving money on the table or receiving it only after a few months, which can affect your finances significantly.
If you are between 20 and 67 years of age and an Israeli citizen, you will be eligible for unemployment if you have worked 360 days out of the 540 days before becoming unemployed as a salaried worker, or 300 days if you were a daily worker. Bituach Leumi has a calculator for checking unemployment eligibility, but it can only be used after you have left your job and signed up at the Employment Office (Lishkat Taasuka). If it’s not a secret that you are leaving the company, your HR department can help you determine your eligibility. See our article on How to Collect Unemployment in Israel for more information about eligibility and the process of applying.
Severance pay is given to employees who have worked for a year or more in the same workplace, and is legally one month’s salary for each year worked (although your contract can include a higher amount). If you can afford it, it’s financially beneficial to leave the severance pay in your pension fund until retirement. Of course, if you need it, it can be helpful in tideing you over until you find your next job.
Need more information about your rights? These resources are helpful in understanding what you’re legally entitled to. In some cases, it is worthwhile to consult a labor lawyer for expert advice on how to proceed.
