Quick Answer: The Advance Notice to Employees and Resignations Law 5761-2001 requires every Israeli employer to give written notice before dismissal, and every employee to give notice before resigning. The advance notice period for a salaried employee reaches 30 days after one year of employment. If your employer dismisses you without working or paying the notice period, you can claim the full value from the Regional Labor Court. Foreign workers have exactly the same rights as Israeli employees.

Getting dismissed with a simple "you're done as of today" is not legally valid in Israel. Unlike at-will employment jurisdictions, every employment relationship in Israel ends under a statutory notice framework that specifies how many days of warning must be given, what that notice must contain, and what the financial consequence is when it is skipped.

For foreign nationals starting or leaving a job in Israel, understanding the notice period rules saves real money and prevents avoidable disputes. The calculations are specific to your pay cycle and how long you have been employed, so a worker dismissed in month three faces a very different situation from one leaving after three years.

1. The Notice Law: What It Covers

The Advance Notice to Employees and Resignations Law 5761-2001 (חוק הודעה מוקדמת לפיטורים ולהתפטרות, התשס"א-2001) is the primary statute governing end-of-employment notice in Israel. It applies to all employees regardless of sector, and sits alongside two other overlapping requirements:

  • The pre-dismissal hearing requirement, developed through National Labor Court decisions (the shmiath tviunot doctrine), which requires employers to conduct a genuine hearing before any dismissal
  • The Severance Pay Law 5723-1963, which entitles employees with at least 12 months of service to severance pay on dismissal

The Notice Law covers only the notice obligation: how long the warning period must be, who must give it, and what happens when it is not honored. A collective agreement or extension order applying to your sector may set longer notice periods than the statutory minimum. Shorter notice cannot be agreed contractually; any clause providing less is void.

Notice must be given in writing, specify the last working day, and be delivered directly to the other party. Email and messaging apps satisfy the writing requirement under current Israeli Labor Court practice, though the date of delivery is what starts the clock on the notice period.

In Practice

The Ministry of Economy and Labor (משרד הכלכלה והתעשייה) enforces the Notice Law through its Labor Inspectorate. An employer who repeatedly fails to honor notice obligations can be cited and fined. In practice, most breaches are resolved through the Regional Labor Court rather than administrative enforcement. Complaints to the ministry's labor inspectors are free and can be submitted at any regional office or through gov.il.

2. Notice Periods for Salaried (Monthly) Employees

Section 3 of the Notice Law sets the notice period for employees paid on a monthly basis. The notice scales with time served:

Length of employment Notice period
Months 1 to 6 1 day per full month worked
Month 7 to month 12 6 days + 2.5 days per month from month 7 onward
After completing 12 months 30 days (statutory maximum)

A practical example: a salaried employee dismissed after 9 months earns 6 days (for months 1 to 6) plus 3 months multiplied by 2.5 days (for months 7, 8, and 9), giving a total of 13.5 days (rounded to 14 days). After completing one full year, the notice is always 30 days regardless of how much longer the person has worked. The law does not increase notice above 30 days for longer-serving monthly employees.

In Practice: Calculating Pay in Lieu for a Monthly Employee

Suppose a salaried employee earns NIS 14,000 per month and is dismissed after 10 months of employment. Their notice entitlement under Section 3 is: 6 days (months 1–6) + 4 months × 2.5 days (months 7–10) = 6 + 10 = 16 days. Pay in lieu is calculated as 16/30 of the monthly salary: NIS 7,467. This amount is paid as part of the final salary and is subject to standard tax and social deductions.

3. Notice Periods for Daily and Hourly Workers

Section 4 of the Notice Law applies a different scale to employees paid by the day or by the hour. The periods are shorter in the early months but reach the same 30-day ceiling after two years of employment:

Length of employment Notice period
First month 1 day
Months 2 and 3 2 days per month worked in this period
Months 4 to 6 Accumulated days + 1 day per month from month 4
6 months to 1 year 14 days
1 year to 2 years 21 days
After completing 2 years 30 days

The shorter early-months scale traces back to the traditionally casual nature of day-rate work. Once you pass six months, a flat 14-day floor kicks in regardless of how your hours vary week to week.

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4. Payment in Lieu of Notice

Section 7 of the Notice Law lets an employer pay the financial equivalent of the notice period rather than having the employee keep working. This payment in lieu (tmurah b'kha'aseh) is common when the working relationship has soured, or when the employer wants the employee off the premises immediately, typically to cut off access to confidential systems or client relationships.

Pay in lieu must cover the full compensation the employee would have earned during the notice period, including:

  • Base salary
  • Any regular bonuses or commissions that would have accrued during the period
  • Employer social benefit contributions (pension, keren hishtalmut) that would have accrued
  • The value of any benefits normally provided (company car, phone, etc.) for the duration of the notice

Pay in lieu is subject to the same income tax withholding and National Insurance Institute (NII / Bituach Leumi) deductions as regular salary. It is not a tax-free severance component. The payment must appear on the final payslip with a clear description of the period it covers.

In Practice: Garden Leave vs Pay in Lieu

Garden leave means the employer keeps you on payroll for the notice period but asks you not to come in. Pay in lieu means they pay a lump sum and your employment ends immediately. The key legal difference: during garden leave you are still an employee (bound by confidentiality, non-compete, and IP-assignment clauses), while pay in lieu ends the employment relationship on the day of termination. Tech companies in Israel frequently use garden leave rather than pay in lieu to keep NDAs and non-competes running during the full notice window.

5. When You Resign: Your Notice Obligations

Section 5 of the Notice Law mirrors the employer's obligation: an employee who resigns must give written advance notice of the same length the employer would owe them under Sections 3 and 4. A salaried employee who has worked for more than one year must give 30 days' written notice of resignation.

The resignation notice must name the intended last working day. Verbal resignation is not enough. Written notice is a statutory requirement, though Israeli labor courts have accepted emails and messaging-app messages where the date and intent were unambiguous.

If you leave before giving the full required notice, Section 8 of the law lets your employer deduct the value of the unworked days from amounts owed to you, typically from the vacation-day payout (dmei chufshat mivuzeret) or the final salary. The employer cannot claw back more than the actual notice value and cannot hold back other entitlements, such as severance or pension release, on account of the missed notice days.

In Practice: Negotiating a Shorter Notice Period

Both parties can agree to shorten or waive the notice period by mutual written consent. If you want to start a new job in two weeks but owe 30 days' notice, you can negotiate to be released earlier, sometimes against forfeiting accrued vacation pay or another concession. Whatever you agree, get it in writing. The Regional Labor Court will not enforce a verbal waiver against an employee who later claims the full period was owed.

6. What Happens When Notice Is Not Given

An employer who dismisses an employee effective immediately without paying in lieu commits a breach of the Notice Law. The employee's remedies are:

  • The Regional Labor Court will order payment of the full salary and benefits the employee would have received during the notice period, computed from the date of dismissal to the date notice would lawfully have ended.
  • Skipping notice is typically treated as evidence of bad faith and can push up the compensation awarded in any parallel wrongful termination or improper hearing claim.
  • Section 11 of the Notice Law also designates breach as a criminal offense, giving the Ministry of Economy and Labor power to prosecute. In practice, prosecutions are rare; most employees go straight to the Regional Labor Court.
In Practice: Filing a Notice Claim in the Regional Labor Court

Claims for unpaid notice period compensation are filed as tvia eshit (personal employment claim) at the Regional Labor Court serving the district where you worked. Israel has Regional Labor Courts in Tel Aviv, Jerusalem, Haifa, Be'er Sheva, Nazareth, and Petah Tikva. Filing fees for claims up to NIS 20,000 are approximately NIS 165; claims above that amount carry a proportional fee, capped well below civil court rates. The limitation period is 7 years from the date the notice payment fell due, under the Employment Claims Prescription Law 5758-1958. Most straightforward notice claims settle before a hearing once a filed claim is served on the employer.

7. Foreign Workers and Expats: Notice Rights and Special Rules

The Advance Notice Law applies in full to every person working in Israel under an employment relationship, regardless of nationality or immigration status. Skilled foreign workers on B/1 work visas, caregivers on caregiver permits, and employees on accompanying family visas all have the same notice entitlements as Israeli citizens.

Section 1F of the Foreign Workers Law 5751-1991 voids any contract clause that provides a foreign worker with less than the minimum labor protections set by Israeli law, notice periods included. An employer who includes a shorter notice clause in a foreign worker's contract cannot rely on that clause; the statutory minimum applies automatically.

There is, however, an administrative dimension unique to foreign workers: work permits in Israel are employer-specific. When employment ends, both the employer and the employee have reporting obligations to the Population and Immigration Authority (Rashut HaHagira, under the Ministry of Interior). The employer must notify the authority of the termination within the prescribed timeframe; the foreign worker must either transfer to a new employer or leave Israel unless their visa status supports remaining. Working out the notice period with one employer while transitioning to another requires careful coordination with an immigration lawyer, since a foreign worker's continued legal status depends on maintaining a valid work permit status throughout.

In Practice: Foreign Worker Notice Period and Permit Status

During the notice period (whether working or on garden leave) a foreign worker remains employed and their work permit stays valid. The notice period counts toward the length of employment for calculating severance eligibility under the Severance Pay Law 5723-1963. Once employment officially ends (either at the end of the worked notice period or on the day of pay-in-lieu termination), the employer must update the Population and Immigration Authority within 7 days under Section 13A of the Foreign Workers Law. Failure to do this can complicate the worker's ability to obtain a new work permit with a different employer in Israel.