One mistake in a resignation letter could cost you thousands of shekels

The article explains how the wording of the reason for resignation in a letter affects the receipt of severance pay and unemployment benefits in Israel. Examples are given where voluntary resignation can be equated to dismissal initiated by the employer, allowing full compensation. The author warns that ignorance of the differences in the criteria of the two systems can lead to the loss of tens of thousands of shekels.

The article on the 'Kursor' website explains how the wording of the reason for resignation in a letter affects the financial consequences for an employee in Israel. The author, Irene David, references material from mako and emphasizes that the systems of severance pay (under the Severance Pay Law) and unemployment benefits (Bituach Leumi) have different lists of valid reasons. The same reason may entitle full severance pay but not exempt from the 90-day waiting period for unemployment benefits. An example is given of a 34-year-old employee with a gross salary of 12,000 shekels and four years of tenure. Full compensation amounts to 48,000 shekels, but the provident fund holds about 34,600 shekels, so the employer must pay an additional 13,426 shekels. Unemployment benefits are estimated at 284 shekels per day; with a valid reason, payments for the first three months (about 21,300 shekels) are made without waiting. The article lists circumstances under which voluntary resignation is equated to employer-initiated dismissal: significant deterioration of working conditions, health problems, caring for a child up to nine months, relocation of 40 km or more. The author recommends clearly stating the reason in the resignation letter and acting in advance when conditions worsen to avoid losing the right to compensation.