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Guide

Ending an employment relationship in Israel

The hearing, notice and final payment requirements an employer should follow when ending an employee's employment.

The hearing

Before dismissing an employee, an employer in Israel must hold a hearing (shimua). The employee should receive advance written notice of the hearing and the reasons being considered, enough time to prepare, and a real opportunity to respond, in writing or in person. The decision should be made only after the employee's response has been considered.

Employees with special protection

Some employees cannot be dismissed without a permit from the Ministry of Labor, for example a pregnant employee who has worked for the required period, an employee during fertility treatment, and employees during and after certain periods of leave or reserve duty. These cases need to be checked before any step is taken.

Advance notice

Both employer and employee must give advance notice of termination, with the length of notice depending on how long the employee has worked. An employer can pay the employee in place of notice.

Severance pay and final settlement

An employee dismissed after at least a year of employment is generally entitled to severance pay, which is often covered in whole or in part by pension contributions made during employment. The final pay slip should include all amounts due, such as unused vacation days and recuperation pay.

Documents to provide

At the end of employment, the employer provides the documents the employee needs, including the tax form that allows the severance and pension funds to be released, and the confirmation of employment required to claim unemployment benefits.