Labor Law

What advance notice must an Israeli employer give an employee before termination?

Under the Prior Notice for Dismissal and Resignation Law 5761-2001, the required notice period in Israel depends on the employee's length of service. During the first year of employment, notice equals one day per month worked. After one year, the standard notice period is one full calendar month. An employer who does not give the required notice must pay the employee dmei hoda'a mookdemet (advance notice pay) in lieu of the notice period. The notice obligation is mutual — an employee who resigns must give the same period of notice, failing which the employer may deduct the equivalent pay from the final salary.

The Prior Notice for Dismissal and Resignation Law 5761-2001 governs notice periods for all employees in Israel. For monthly-paid employees: during the first year, notice accumulates at one day per month worked (so an employee with six months of service is entitled to six days' notice); after completing one full year, the notice period becomes one full calendar month. For daily-paid and hourly employees, the law uses a different sliding scale — one day per month in months one through six, rising gradually, then one month after one year of continuous employment. These are statutory minimums; a personal or collective employment agreement may provide for longer notice periods, which then govern over the statutory minimum. Collective agreements in specific sectors — healthcare, banking, public sector — often provide for longer notice of two to three months.

For foreign employers hiring in Israel, the notice obligation has two practical dimensions: giving proper notice or paying cash in lieu before terminating; and conducting a disciplinary hearing (*shmiath tviot*) before dismissal, as required by Israeli case law. Failure to give notice pay or to conduct a proper hearing exposes the employer to a labor court claim for wrongful dismissal. The notice period runs even when the employee is placed on paid "gardening leave" — if an employer pays salary during the notice period without requiring attendance, that satisfies the notice obligation. Severance pay under the Severance Pay Law 5723-1963, which vests after one year of employment, is a separate obligation and is not offset by notice pay. More guidance on Israeli employment rights and termination is in the employment law guide for foreign nationals and expats.

⚖ In Practice
  • Governing law: Prior Notice for Dismissal and Resignation Law 5761-2001; Severance Pay Law 5723-1963
  • Competent authority: Regional Labor Court (Beit HaDin HaAzori LaAvoda); National Labor Court (Beit HaDin HaArzi LaAvoda) on appeal
  • Notice during year one: 1 day per month worked (e.g., 9 months of service = 9 days' notice)
  • Notice after one year: 1 full calendar month regardless of further seniority
  • Pay in lieu: employer may pay dmei hoda'a mookdemet instead of working notice — amount equals the employee's full regular monthly salary
  • Limitation period: labor law claims must be filed within 7 years under the Employment Claims Prescription Law 5718-1958

From the full guide: Employment Law in Israel for Foreign Nationals and Expats: A Practical Guide


Related Questions

Related Guides

Need legal help with this topic?
Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

← Browse all Q&A