Comments on: How To Quit Your Israeli Job and Still Receive Severance Pay

By: Moshe

Moshe — Sun, 29 Jan 2012 17:15:46 +0000

That is exactly what I am saying. The employer releases the whole policy – all portions: employee’s, employer’s (including severance pay)
They will hold onto the severance pay portion only in extreme cases of theft, etc

By: josh

josh — Fri, 27 Jan 2012 10:16:12 +0000

I apologize, something is not clear to me. We’ve talked above about when an employee is entitled to ‘pitzui piturim’ and when they are not (moving away 40 km, reduction of working conditions, etc… Are you saying that this law has changed and the employee is always entitled to the pitzuim, even if they choose to leave the company for ‘no justified reason’?

By: Moshe

Moshe — Fri, 27 Jan 2012 07:49:14 +0000

Josh,
Since the law changes regarding mandatory pension plans were initiated, there is no such thing as severance pay fund. Severance pay is a portion of the pension plan and paid by the employer only.
Today, it is rare that employers need to actually pay severance pay out of their own pocket, since 8.33 % usually covers it. In the public sector, especially with older pension plans, that have a lower % of severance pay, the employer sometimes needs to add to it. The severance pay is “paid” by releasing the accumulated funds to the employee via written consent to the fund and the employee upon end of employment.

By: josh

josh — Tue, 24 Jan 2012 22:18:12 +0000

Moshe,
if someone works for five years, accrues a nice severance pay fund, but leaves for a better opportunity at a company across the street, wouldn’t the severance fund simply go back to the company? Is this fund a pension or for pitzui piturim?

By: Moshe

Moshe — Tue, 24 Jan 2012 16:58:22 +0000

Answer to # 63

Josh,
You don’t understand correctly as there are set laws on severance pay, how to configure them and has nothing to do with management level.
Occasionally, a contract has better benefits than the basic law, in which case the contract presides. The law is there to ensure a basic level is adhered to.
The severance pay portion is calculated from your base pay, but the employer pays it totally – it is not deducted from your pay. Since changes in the law in Jan 2008, severance pay is mandatory and the company can not pocket the money. They release it to the employee upon his leaving the employer.
Not paying into the fund is a criminal offense and punishable by stiff fines and even imprisonment. Not to mention that the pension funds claim interest and link the base fee owed to the consumer index for late payments.
Employees are encouraged to sign up on-line for a secure password and username to access their account on the pension plan’s site and keep tabs on when the employer deposits the money.
The funds also send out quarterly and annually written reports to all fund members (these can also be printed with a click from the user’s area on the site).
Reccuring infringements of pension plan rights should be reported to the Ministry of Labor’s hotline at 1800-354-354

By: Moshe

Moshe — Tue, 24 Jan 2012 16:45:11 +0000

Answer to # 62 – Baruch
Actually both are correct. In order to configure severance pay for someone who worked part-time for one period and full-time for another each period is considered a separate entity and a separate calculation would be done for each and then the sums be added together or you would configure the total amount for full-time then after figuring out the actual percent of time worked -multiply the total by the actual percent of time worked.
example: someone worked 50% job for 1 year and full-time for another year. monthly salary was 10,000 sh
2 years * 10,000 = 20,000 (for full-time)
12 months * 50% = 6 months
12 months 8 100% = 12 months
total 18 months – 1.5 * 10,000 = 15,000

By: josh

josh — Sun, 15 Jan 2012 09:40:48 +0000

If I understand correctly, they are definitely not required to use your last pay slip, and this might only be a nice fringe benefit to management levels or if you have this stated in your contract. Many companies pay into a (your) severance fund every month as a percentage of your salary (not from it). If you leave the company and are eligible, the fund is released to you. If you are not eligible, they can simply pocket the money. Some companies do not bother to pay into the fund, or embezzle the money, and then might find it hard to pay up when the time comes.

By: Baruch

Baruch — Sun, 15 Jan 2012 07:24:48 +0000

Dear Jacob

I worked part-time at my job and then switched to full-time. In terms of calculating severance pay for the period I worked part-time, would my company look at my last part-time pay slip (as I would expect) or at my last full-time pay slip (as someone suggested to me)?

Thanks
Baruch

By: Moshe

Moshe — Mon, 07 Nov 2011 20:25:02 +0000

Anita,
Unemployment pay cannot be collected while you are on maternity leave. If you quit your job to look after your baby (at the end of your maternity leave or after the extended period of non-paid leave ends) you may be eligible if you meet the other criteria. see social security’s website for more information: http://www.btl.gov.il
you can also try to call their hotline *6050

unused Sick-day balance is only paid out to public sector employees who have worked for at least 10 years and have used less than 65% of the allotted sick days. And even then it’s not paid out 100%. There is a set calculation as to how this is done, but it is irrelevant in the private sector.

all the best

Moshe

By: anita

anita — Sat, 05 Nov 2011 17:22:33 +0000

thank you for your response, it was very helpful….. one more question…. would I also be able to claim unemployment benefit, after quitting my job in order to look after my baby? ( I am receiving pitsuim)

Also if i have outstanding sick days, should i be paid out for those too?

Thank you in advance

Anita