A dismissal letter: what it must include

Service page: Unlawful dismissal: when, what you are entitled to and how to sue.

You have received a dismissal letter. Your heart sinks, but this is not the time to panic. It is the time to check. A dismissal letter is a legal document with strict requirements, and an employer that did not meet them has put itself in trouble. Here is what you need to know.

What must the letter include, and what happens if something is missing?

A dismissal letter is a critical legal document that must meet strict legal requirements. Under the Advance Notice of Dismissal and Resignation Law, 5761-2001, advance notice of dismissal must: (1) be given in writing; (2) state the day the notice was issued and the day the dismissal takes effect (section 2(c)); (3) give a notice period whose length depends on seniority. For a monthly-salaried employee: one day for each month of work in the first half year; 6 days plus two and a half days for each month from the seventh month to the end of the year; and after a year, one month (section 3). For an hourly or daily-paid employee: under section 4. An employer that did not give such notice will pay compensation equal to the regular wage for the period for which it was not given (section 7(a)). When the employment ends, the employer must give the employee written confirmation of when the employment relationship started and ended (section 8(a)). An employer that did not give it within 14 days of the last day of work, or within 7 days of the employee’s written demand, whichever is earlier, commits an offense (section 8(b)).

A dismissal letter that does not meet these requirements can oblige the employer to pay compensation equal to the wages for the period for which advance notice was not given (section 7(a) of the Law). Together with other defects in the process, it can serve as a basis for a claim for “unlawful dismissal” in the Labor Court. A dismissal given orally or by phone does not meet the writing requirement in section 2(c) of the Law. An employer that claims it gave advance notice will have to prove it.

How much advance notice are you owed? (By years of seniority)

The minimum advance notice period varies with seniority and with the type of pay. A monthly-salaried employee: in the first six months, one day for each month of work; from the seventh month to the end of the first year, 6 days plus two and a half days for each month; after the first year, one month (section 3). An hourly or daily-paid employee: in the first year, one day for each month; in the second year, 14 days plus one day for every two months; in the third year, 21 days plus one day for every two months; after that, one month (section 4). This rule also applies during a trial period.

An employment contract can set a longer notice period, but not a shorter one than the legal minimum. If the contract sets “two months” for an employee who has worked a year, this is legal, because it is longer than the minimum. If it says “one day” for an employee who has worked ten years, the court will order one month, regardless of what the contract says.

Checklist: what to look for in the letter you received

The law requires the letter to state the day the notice was issued and the day the dismissal takes effect (section 2(c)). A well-ordered letter also includes: the date of the letter, the employee’s full name and ID number, a description of the role, the last day of work (after the notice period), clear wording that the employment is ending, and a list of the financial rights to be paid: wages, vacation, severance pay, study fund (keren hishtalmut).

The reason for the dismissal does not have to be written expressly in the letter. But the right to be heard (a pre-dismissal hearing) is not limited to dismissals for serious misconduct: the employee must get a real opportunity to make their arguments before the decision is made. If an employee claims they were dismissed for a reason that the Employment (Equal Opportunities) Law, 5748-1988 (חוק שוויון ההזדמנויות בעבודה, התשמ״ח-1988) forbids, the burden of proof passes to the employer if the employee proved that there was no reason for the dismissal in their conduct or actions (section 9(a)(2) of the Law).

How much money are you entitled to on dismissal?

A dismissed employee is entitled to a set of payments: wages until the end of the notice period, severance pay (at the rate calculated under the Severance Pay Law, 5723-1963), unused vacation at full pay, and the study fund that has built up.

Severance pay is calculated on the basis of the employee’s last wage just before the dismissal (regulation 4 of the Severance Pay Regulations (Calculation of Severance Pay and Resignation Deemed Dismissal), 5724-1964). This includes basic wage, seniority increment, cost-of-living increment and family increment (regulation 1). A component paid as commission or by output is calculated by the average of the 12 months before the dismissal (regulation 9). Severance pay not paid within 15 days of its due date is considered late, and the employer can be liable for compensation for late payment of wages (section 20 of the Wage Protection Law, 5718-1958).

Were you dismissed for a prohibited reason? You have a cause of action

The Employment (Equal Opportunities) Law forbids dismissal because of sex, sexual orientation, personal status, pregnancy, fertility treatments, IVF treatments, being a parent, age, race, religion, nationality, country of origin, place of residence, views, political party or reserve duty (section 2). Other laws also forbid dismissal. One is dismissal because of membership or activity in a workers’ organization (trade union) (section 33J of the Collective Agreements Law, 5717-1957). Another is dismissal because of a complaint in good faith to the competent authority about a breach of an enactment (Protection of Employees (Exposure of Offenses and Harm to Integrity or Proper Administration) Law, 5757-1997 (חוק הגנה על עובדים (חשיפת עבירות ופגיעה בטוהר המידות או במינהל התקין), התשנ״ז-1997)).

An employee who was harmed can file a complaint with the Equal Employment Opportunities Commission, or a claim directly with the Labor Court. The court can order reinstatement, order payment of wages for the period of absence, and award further compensation for the damage.

Was there a pre-dismissal hearing before the letter?

The dismissal letter is given after the hearing and after the decision, not before them: a letter given before the hearing shows that the decision was made in advance. Did you receive a dismissal letter without first being summoned to a hearing? Keep the letter, and write down when and how it was given to you.

On the right to a hearing and what must happen in it, see A pre-dismissal hearing.

Keep everything: documents that will decide the case

For any employer that dismisses: keep the dismissal letter and every confirmation of its receipt (an email, a signature, a registered letter), earlier performance reviews, records of warning conversations, and all relevant correspondence. This is the evidence that will decide the outcome in court.

If the employer did not keep documents, the court can draw negative conclusions. And if you are the employee: ask for everything in writing, even before they remove you from the systems.

Want to sue? This is how the process works

An employee who was unlawfully dismissed can file a claim with the Labor Court, generally within seven years (section 5 of the Prescription Law, 5718-1958). A claim under the Employment (Equal Opportunities) Law is filed within five years of the day the cause of action arose (section 14 of that Law). Possible causes of action: breach of contract, non-payment of severance pay, dismissal for a forbidden reason, and defects in the hearing process.

The court can award: reinstatement (rare, because the relationship has broken down), wages for the period of absence, payment of rights that were harmed, and compensation for non-financial damage. In certain circumstances, legal costs too.