Israeli law mandates specific notice periods for both employers and employees during termination of employment contracts.

Notice Period for Employees

Employees in Israel are required by law to provide written notice to their employer if they intend to resign. The mandatory notice period for resigning employees is one month. The employee must continue working for this period after submitting the written resignation notice. There may be exceptions to the one-month notice period for employee resignation stipulated in individual employment contracts. However, these contractual terms cannot reduce the employee's notice period below the legal minimum.

Notice Period for Employers

Unlike some other jurisdictions, there's no legal requirement for employers to provide a notice period in cases of employee termination.

Exceptions

There might be exceptions to the one-month notice period for employee resignation stipulated in individual employment contracts. However, these contractual terms cannot reduce the employee's notice period below the legal minimum.

Importance of Following Notice Periods

Following the legal notice period requirements ensures a smooth handover of duties and minimizes disruption for both the employer and the employee. It also allows for proper fulfillment of contractual obligations.

In Israel, severance pay is a mandatory benefit provided to employees upon termination of employment under certain conditions.

Eligibility for Severance Pay

Employees who have completed at least one year of service with the same employer are generally entitled to severance pay. Pro-rated severance pay may be applicable for partial years of service.

Calculation of Severance Pay

The amount of severance pay is calculated as one month's salary multiplied by the number of years of employment, including partial years. For example, an employee who worked for a company for 5 years and 3 months (pro-rated as 0.25 years) with a monthly salary of ₪10,000 would be entitled to severance pay of ₪52,500.

Employer Contributions

Employers in Israel are legally required to contribute towards a severance pay fund for each employee. This contribution is typically a percentage of the employee's monthly salary. These contributions are then paid out to the employee upon termination of employment.

Important Points to Remember

There is no separate statutory severance entitlement specifically for redundancy situations. However, some companies may offer additional benefits in such cases. The information provided here is intended as a general guide.

In Israel, the law mandates a fair and structured termination process for employees. Here are the key steps involved:

Pre-termination Considerations

Before dismissal, employers must grant employees the right to be heard. This includes providing reasons for potential termination and allowing them to review relevant documents while having the right to legal representation.

Post-termination Procedures

Upon termination, employers must pay all accrued wages, vacation pay, and any other outstanding amounts due to the employee.