What is constructive dismissal under Israeli labor law, and how can an employee claim severance?

Section 11(a) of the Severance Pay Law 5723-1963 provides that an employee who resigns due to "a deterioration in conditions of employment or other circumstances related to work, which justified the resignation" retains the right to severance pay calculated at one month's salary per year of service — identical to the entitlement of a directly dismissed employee. The National Labor Court has built an extensive body of case law defining what qualifies as a "justifying deterioration." Accepted grounds include: a unilateral and substantial reduction in salary, a transfer to an incompatible role without consent, a fundamental change to the terms of the employment agreement, sustained personal harassment by management, or repeated late payment of wages in violation of the Wage Protection Law 5718-1958. The conduct must be more than merely unpleasant or unfair — it must make the continuation of the employment relationship objectively unreasonable. For foreign employees navigating Israeli workplace law, the employment law guide for foreigners provides essential background.

Building a successful constructive dismissal claim requires deliberate evidence-gathering before resigning. The employee should document every incident — emails, memos, payslips, bank transfer records — and, critically, notify the employer in writing that specific conditions are unacceptable before submitting a resignation. Written complaints give the employer an opportunity to remedy the breach and demonstrate that the employee acted in good faith. A resignation submitted without any prior written objection significantly weakens the claim, as courts may find the employee did not give the employer a reasonable chance to cure the problem. Foreign employees — including expatriates on employment-based visas — are entitled to assert constructive dismissal on exactly the same legal basis as Israeli citizens; the Regional Labor Court's jurisdiction covers all employment relationships in Israel regardless of nationality. Claims must be filed within 7 years of the resignation date.

From the full guide: Employment Law in Israel for Foreigners: Rights, Obligations, and Protections

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