ISRAEL Law and Practice Contributed by: Tal Keret, Shira Lahat, Neta Goshen Brami, Shira Cohen-Mazor and Shirly Mahlab Hefetz, Arnon, Tadmor-Levy
before termination. Failure to comply with the notice or procedural requirements may result in liability for additional compensation. 7.3 Dismissal for (Serious) Cause Immediate termination, also known as termination due to serious cause, is the immediate termination of the employment relationship without notice or severance pay due to the employee’s serious misconduct or a fundamental breach of trust. Under Israeli law, aggra - vated cause may include acts such as theft, violence, gross disobedience, or other conduct that irreparably harms employment relations. Even in cases of a seri - ous cause claim, employers must follow due process. This includes giving the employee written notice of the allegations, holding a pre-termination hearing where the employee can respond, and considering the employee’s explanation before making a final deci - sion. Failure to comply with these procedural require - ments may render the dismissal unlawful, regardless of the underlying behaviour. If the immediate dismissal is carried out lawfully, the employee loses their right to advance notice and, in some cases, to severance pay as well. However, if the dismissal is found to be unjustified or procedurally improper, the employer may be required to pay compensation, reinstate the employee, or both. 7.4 Termination Agreements Termination agreements are permitted under Israe - li law and are common for the purpose of formally arranging the termination of employment by mutual consent. While there is no legal requirement for a spe - cific procedure, best practice requires that the agree - ment be in writing, clearly detailing the terms of the separation, including effective date, financial arrange - ments (such as severance pay, notice, and additional payments), and any waiver or release from claims. In order for a waiver of claims to be enforceable, it must be specific, clear, and done with the informed consent of the employee – preferably after the employee has been given the opportunity to receive independent legal advice. In most cases, the waiver should also be accompanied by compensation that exceeds the employees’ statutory entitlement. General waivers that attempt to release any future or unknown claims may not be recognised by the courts, especially if the employee did not fully understand the implications.
Termination agreements cannot waive statutory rights that are non-waivable, such as minimum wage, pen - sion contributions, or accrued vacation. Any attempt to circumvent mandatory protections may render the termination agreement, or parts of it, unenforceable. 7.5 Protected Categories of Employee Israeli law provides specific protections against dis - missal for certain categories of employees. These include, but are not limited to, pregnant women, work - ers undergoing fertility treatments, workers on mater - nity or parental leave, employees in military reserve service (or spouses of reservists), employees who are bereaved parents, and employees on sick leave. The dismissal of such employees usually requires prior approval from the Ministry of Labor/Employment Committee. Dismissal without such authorisation is considered illegal and null and void. Additional pro - tections apply to representatives of workers and trade union activists, whose employment conditions cannot be dismissed or changed due to their representative role without prior approval from the relevant labour authority. These protections are designed to prevent harassment and ensure the effective functioning of employee representation and collective bargaining. Failure to comply with these requirements may lead orders for reinstatement and compensation for the affected employee. 8. Disputes 8.1 Wrongful Dismissal Grounds for Unlawful Dismissal Claims Under Israeli Law Procedural defects in the dismissal process A termination may be deemed unlawful if the proce - dure was flawed, for instance, if the employee was not given a proper pre-dismissal hearing (known as a Shimua ) or if the hearing was conducted improperly. Examples include failure to provide a written notice specifying the reasons for the hearing, or evidence that the decision to terminate had been made prior to the hearing (eg, a replacement was hired before the hearing).
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