Transferring an employee: when it is allowed and when it is a worsening of conditions

Service page: Employment lawyer: dismissals, wages and severance pay.

What counts as “transferring an employee”, and when is it lawful at all?

The employer wants to “transfer” you to another role, another branch or another city. This is possible, but not automatic. A transfer that materially changes the terms of employment requires the employee’s consent, or at least that the employer acts within the contract, for relevant reasons and in good faith.

The duty of good faith also applies to exercising a right under the employment contract (section 39 of the Contracts (General Part) Law), so an employer that transferred an employee without a relevant reason may be required to compensate them.

Conditions for a lawful transfer: written consent and a “reasonable ground”

As a rule, a lawful transfer rests on the employee’s consent, or on a power that the contract gives the employer and that is exercised for relevant reasons and in good faith. Even when the employer has a genuine business need, an employee can hardly be expected to accept a pay cut or harm to their promotion as part of a transfer, and such a change may be considered a material deterioration in working conditions.

The court may examine the reason objectively: not only whether the employer believed there was a reason, but whether it is relevant and proportionate to the needs of the work.

When does a transfer become a worsening of conditions, and what are you entitled to?

If the transfer harms the terms of employment (a pay cut, a demotion, a burdensome geographical distance), the employee may resign and argue that their resignation should be treated as dismissal. Under section 11(a) of the Severance Pay Law, 5723-1963, when an employee resigned because of a “material deterioration in working conditions”, their resignation is treated as dismissal, and they are entitled to severance pay if they worked at least one year.

The practical rule: an employee who wants to sue must prove that the change really harmed the terms of employment, not just that they did not like it. Documentary evidence is critical.

What is the law on transferring an employee to a distant workplace, or on a demotion?

Transfer to a parallel role at the same wage cost: it is the employee who must show that the change is a material deterioration in working conditions. When an employer moves an employee from role A to role B at the same wage, it is harder to argue a material deterioration, but the transfer must still be made within the contract, for relevant reasons and in good faith.

Transfer to a lower-ranking role: a demotion may be considered a material deterioration in working conditions even when the wage did not go down, because “working conditions” are not limited to the wage, and professional status and promotion prospects may be taken into account.

Transfer to a distant workplace: if a transfer adds significant travel expenses or requires the employee to move home, it too may be considered a material deterioration in working conditions, especially when the employer does not contribute to the additional expenses.

Want to sue over a forced transfer? How to apply to the Labor Court

If an employer transferred an employee unlawfully, the employee can apply to the Regional Labor Court, which has exclusive jurisdiction in disputes between employee and employer (section 24 of the Labor Court Law, 5729-1969). The court examines whether the employee consented to the transfer, and if not, whether it was made within the contract, for relevant reasons and in good faith.

An employee who keeps working in the new role can sue to enforce the terms of the contract or for compensation for its breach; an employee who chose to resign because of the transfer can sue for severance pay under section 11(a) of the Severance Pay Law (see Resignation deemed dismissal: when you get severance pay even though you resigned).

Must the employer give notice of the change in terms when transferring you?

When the transfer changes terms of employment that the employer must set out in the notice of employment terms, for example the description of the main duties of the role, the direct supervisor, the wage or the length of the working day (section 2(a) of the Notice to Employee and Job Candidate (Terms of Employment and Screening and Hiring Procedures) Law, 5762-2002 (חוק הודעה לעובד ולמועמד לעבודה (תנאי עבודה והליכי מיון וקבלה לעבודה), התשס״ב-2002)), the employer must give the employee notice of the change within 30 days (section 3). There is no such duty, among other cases, when the change results from a change in the law or appears on the payslip. In a claim, an employer that did not give notice bears the burden of proving the disputed matter, if the employee testified to their claim (section 5A).

You were transferred: what are your rights during the transfer, even if it is “temporary”?

If an employer transfers an employee for a period (for example, from one role to another), even for a short time, that employee is entitled to keep all their rights. A temporary transfer does not allow harm to the wage or to the terms set in the contract, and the prohibition on discrimination applies to it too. Transferring an employee with a disability to a place that is not adapted for them, without making the necessary accommodations, may be considered discrimination, unless the accommodations would place an undue burden on the employer (section 8(e) of the Equal Rights for Persons with Disabilities Law, 5758-1998).

What to document, and how to protect your rights

As soon as you receive notice of a transfer, start documenting. Keep every email, every WhatsApp message, every document. If you do not agree to the transfer, send the employer a written objection at once. Silence may be read as consent. You can ask the Regional Labor Court for interim relief, and in exceptional cases also for an order canceling the transfer.