ISRAEL Law and Practice Contributed by: Tal Keret, Shira Lahat, Neta Goshen Brami, Shira Cohen-Mazor and Shirly Mahlab Hefetz, Arnon, Tadmor-Levy
Unless explicitly stated otherwise, CBAs generally apply to all employees within a workplace. In some instances, and as an exception to the rule, a bar - gaining unit may be delineated within the employer’s organisation, in which case the agreement applies only to the employees within that unit. General (sector-wide) CBAs apply to employees of member employers within the employers’ associa - tion that signed the agreement. Additionally, the Israeli Minister of Labor has statutory authority to issue an extension order, which broadens the applicability of a CBA to all employers operating within a given industry or sector, regardless of their membership in the signa - tory employers’ association. In Israel, an employer is usually required to present a valid reason (motivation) for dismissing an employee. This reason must be presented to the employee as part of a mandatory pre-dismissal hearing process. The motivation for dismissal must be real and not discriminatory or arbitrary. The law does not require a specific list of grounds for dismissal, but dismissal must be based on reasonable and good faith grounds, such as poor performance, misconduct, downsizing, or business needs. The dismissal process is mostly uniform and includes a number of steps: • the presentation of the reasons for considering dismissing the employee, in a full and extended manner; • a hearing prior to dismissal, regardless of the reason for dismissal, during which the employee’s position and the totality of the circumstances are considered; and • a post-hearing decision regarding the employee’s continued employment. 7. Termination 7.1 Grounds for Termination However, in certain circumstances, the employer may be required to follow additional procedures prior to proceeding with the dismissal;, for example, when the employee in question is in a legally protected period (eg, during pregnancy, fertility treatments, illness, military reserve duty) or when the workplace has a
collective agreement that imposes specific provisions for dismissal. Failure to comply with the required pro - cedures or failure to provide a valid justification for dismissal may make the dismissal illegal and expose the employer to lawsuits for unlawful dismissal or a demand for reinstatement. 7.2 Notice Periods Under Israeli law, both employers and employees are generally required to provide advance notice before terminating employment. The length of the notice peri - od depends on the length of the employee’s employ - ment at the workplace and the terms of the employ - ment agreement, subject to statutory minimums. For employees on monthly wages, the minimum notice period ranges from one day per month of work (dur - ing the first year) up to 30 days after completing one year of employment. For hourly or daily wage work - ers, the notice period is shorter and increases with seniority. Notice must be given in writing. By default, employment continues throughout the notice period. In the event of dismissal, the employer may terminate the employment relationship immediately and com - pensate the employee in lieu of the notice period (in whole or in part). Since, according to Israeli law, the vast majority of employees are entitled to pension contributions in the framework of which the employer also sets aside funds for the severance pay compo - nent, employees covered by this legal severance pay arrangement are entitled, at the time of termination of their employment, provided they are entitled to compensation, only to the release of the funds accu - mulated for them, without any additional entitlement to supplemental funds. In the case of an employee to whom the severance pay arrangement does not apply, the employee’s entitlement to severance pay will be examined according to the circumstances (if the employee is entitled to it under the Severance Pay Law, such as in cases of dismissal or certain resigna - tions that are considered equivalent to termination). There is no requirement for external advice or gov - ernment approval for the termination of employment, except in special cases (eg, protected workers such as pregnant women or workers on parental leave, mili - tary reserve duty workers), where prior approval from the Ministry of Labor or the Employment Commit - tee is required. Employers must also comply with all procedural requirements, including holding a hearing
299 CHAMBERS.COM
Powered by FlippingBook