Wrongful dismissal in Israel: when it happens, what you are owed and how to sue

The duty to hold a pre-dismissal hearing is not written in the law. It was set by the case law of the National Labor Court (Labor Appeal (ע״ע) 1027/01 Gutterman v. Emek Yezreel Academic College (National Labor Court, 7 January 2003)). It also applies to a private employer (Labor Appeal 415/06, 15 July 2007). It comes from the duty of good faith in the employment relationship (section 39 of the Contracts (General Part) Law, 5733-1973). It does not depend on being written in the employment contract (Labor Case (סע״ש) 39181-04-14).

Not every meeting with the manager is a hearing. In January 2026 the National Labor Court set out what is required at each stage (Labor Appeal 52013-04-23):

• In the summons: the details of the allegations, with concrete examples and the relevant documents. No wording that shows the decision has already been made. No summons during the employee's vacation in a way that disrupts it.
• At the hearing: reasonable time to prepare and get advice; the chance to present all the arguments; listening “with an open heart and a willing spirit”; no surprise allegations or evidence.
• In the decision: reasons that address the employee's arguments.

A hearing held after the decision was in fact already made is a hearing for appearance's sake only. It may entitle the employee to compensation (Labor Case 1018-10-17). On the other hand, the court looks at substance, not form. When the employee had a real chance to influence the decision, even without a formal “hearing”, compensation is not always awarded (Labor Appeal 56265-09-22).

Check your pre-dismissal hearing question by question, and see how much notice of the summons you should get: Self-check: was the hearing proper?.

In these periods, the law protects the employee even when the employer has a reason that seems legitimate to the employer. In most cases, dismissal is allowed only with a permit given in advance by a government body. In some periods dismissal is forbidden altogether.

Pregnancy, and after the birth

Dismissing a pregnant employee who has worked for the employer for at least 6 months requires a permit from the Minister of Labor. The permit will not be given if the dismissal is related to the pregnancy (section 9(a) of the Women's Employment Law). During the birth and parenting period itself, dismissal is completely forbidden (section 9(c)(1)). In the 60 days after it, dismissal is allowed only with a permit. Even then, it is allowed only if the business has stopped operating, or the employer has been declared bankrupt or has gone into liquidation (section 9(c)(1a)). Even closing the business does not exempt the employer from the need to request a permit.

Temporary Provision (31 March 2026 to 31 March 2027): some unpaid leave is not counted in the 60 days after the birth and parenting period, if it falls within them. This covers unpaid leave of at least 10 consecutive days that the employer put an employee on during the period defined in the Temporary Provision. In certain cases it also covers at least five consecutive days that began on 28 February or 1 March 2026. This extends the protection period (section 9(c)(2c) of the Women's Employment Law). Some absences are also not considered a forbidden reduction of the scope of the position or of income (section 9A(a2)). These are absences during the period defined in the Temporary Provision because of instructions under the Protection of Employees in Emergencies Law (חוק הגנה על עובדים בשעת חירום).

Fertility treatment

During an absence for fertility treatment, and in the 150 days after it, dismissal without a permit is forbidden (section 9(e) of the Women's Employment Law). As a rule, the protection applies to treatments for no more than two births during employment with the same employer. It does not apply once two years have passed since the first day of absence. In addition, section 2 of the Employment (Equal Opportunities) Law lists fertility treatment among the grounds on which discrimination is forbidden, including in dismissal.

Reserve duty

It is forbidden to dismiss an employee because of reserve duty, a call-up for service or expected service, at any time (section 41A(a1) of the Discharged Soldiers (Reinstatement in Employment) Law, 5709-1949). During the service itself, dismissal is forbidden without a permit from the Employment Committee (ועדת התעסוקה) at the Ministry of Defense. For service of more than two consecutive days, this also applies in the 30 days after it. In the 30 days after such service, it is also forbidden without a permit to reduce the scope of the position or the income (section 41A(b)). In proceedings before the committee, the employer must prove that the dismissal was not because of the reserve duty (section 41A(d)). An extension order (an order that applies a collective agreement to a whole sector or to the whole economy) was published on 29 April 2026. It covers an employee who served 60 or more cumulative reserve days in a calendar year, including at least seven consecutive days. Under it, the employer may not dismiss such an employee in the next period either: the 30 days that follow the 30 days after the end of the service. This does not apply when there are special reasons and the dismissal is not because of the reserve duty (section 5 of the Schedule to the Order). An employer who wants to dismiss an employee on those days first applies to the Supervisory Committee at the Ministry of Labor. The dismissal does not take effect until the committee decides, or announces that there is no dispute (section 7 of the Schedule). The Order does not apply to employers and employees covered by the public-sector collective agreement of 26 March 2026.

Spouses are protected too. It is forbidden to dismiss an employee because of the reserve duty of their spouse or of their child's other parent, and such a dismissal is void (section 41A2(b)). A Temporary Provision of 29 April 2026 protects an employee who has a child under 14 (or a student with special needs) with them. Without a permit from the Employment Committee, they may not be dismissed or sent on unpaid leave during the spouse's service and in the 14 days after it. This applies under the conditions in section 41A2(e).

Illness

It is forbidden to dismiss an employee who was absent from work because of illness, during the period of entitlement to sick pay that they accumulated (section 4A of the Sick Pay Law, 5736-1976). The prohibition does not apply if the advance notice of dismissal was given before the employee was absent. It also does not apply if the workplace has stopped operating, the employer has been declared bankrupt or a liquidation order has been given (section 4A(b)). The protection also applies during a probation period.

The remedies depend on the cause of action and the circumstances, and there is no amount known in advance. These are the remedies that the court, or the competent committee, may award:

Other heads of damage: loss of income and emotional distress, according to the circumstances of the case. An order to reinstate the employee is given only in exceptional cases.

How much is awarded for dismissal without a pre-dismissal hearing?

The law does not set an amount for the compensation. The Labor Court sets it in each case according to its circumstances (Labor Case 39181-04-14; Labor Appeal 52013-04-23). In published judgments, the amounts awarded for a defective hearing ranged from NIS 0 to NIS 135,000 (Labor Appeal 56265-09-22; Labor Case 62655-02-20). In January 2026 the National Labor Court raised such compensation from NIS 20,000 to NIS 55,000 (Labor Appeal 52013-04-23).

The full table, with 17 published judgments and their case numbers, and when no compensation was awarded at all: Dismissal without a hearing: how much compensation is awarded.

A claim for unlawful dismissal is generally subject to a limitation period of 7 years (section 5 of the Prescription Law, 5718-1958). But some of the rights claimed with it are time-barred sooner. Claims under the Annual Leave Law are time-barred after 3 years (section 31 of that Law). A claim for compensation for late payment of wages must be filed within one year, or within 60 days after receiving the wage, whichever is earlier (section 17A of the Wage Protection Law). A decision of the Employment Committee in a reserve duty matter can be appealed to the Regional Labor Court within 20 days.

A discrimination claim under the Employment (Equal Opportunities) Law is filed within five years of the day the cause of action arose (section 14 of the Law). This includes, for example, a dismissal because of age, pregnancy or reserve duty.

Even when the formal deadline has not passed, waiting harms the case: evidence disappears and witnesses forget. It is wise to act within weeks, not years.

The law requires the employer to give you several documents around the end of employment. It is worth checking that you received all of them, and keeping them:

• Written advance notice of dismissal, which states the day the notice was issued and the day the dismissal takes effect (section 2(c) of the Advance Notice of Dismissal and Resignation Law, 5761-2001).
• Written confirmation of the start and end of employment, which the employer gives when the employment ends. The employer must give it within 14 days of the last day of work, or within 7 days of your written request, whichever is earlier. If it does not, it commits an offense (section 8 of the Advance Notice of Dismissal and Resignation Law).
• A written payslip, also for the last payment (section 24 of the Wage Protection Law, 5718-1958).
• Form 106 (טופס 106): a statement of all the salary paid to you and the tax deducted from it. It is given by 31 March for the previous year, or on the day you stopped working for the employer, as the case may be (regulation 13(a) of the Income Tax (Deduction from Salary and Wages) Regulations, 5753-1993 (תקנות מס הכנסה (ניכוי ממשכורת ומשכר עבודה), התשנ״ג-1993)). What to check in it: Form 106 and what to check in it.

What the final settlement itself includes, and how to check each item in it: I was dismissed: what am I owed? Final settlement and checklist.