Labor Law Lawyers
An employer guide to ending an employment relationship
Are you not satisfied with the performance of one of your employees and interested in firing? Firing an employee is well within your right. However, while doing so, it is important to do so properly, according to the letter of the law. The legislature has set some obligations the employer must follow in this matter. Their existence will allow you to conduct a termination correctly, reducing the chance of any claim brought by a former employee.
By Igal Mor, Adv. & Notary
Accuracy in Legal Advice. Excellence in legal support.
Hearing
In any case, where an employer wishes to fire an employee, he must hold a hearing procedure beforehand. As its name implies, the purpose of this procedure is to hear the employee’s claims as to why there is no justification for dismissing him. For the hearing to be considered a lawful hearing, the employer must adhere to a few rules:
- Notification of a hearing : The employer must give the employee sufficient notice of the hearing date to prepare for it.
- Specific allegations : The employer must explain to the employee the reasons for his dismissal and give the employee a chance to respond
- Holding a hearing on purpose : The hearing should occur in a manner that allows the employee to voice his opinion, and when the employer is open to listening and reconsidering the dismissal.
- Protocol Management : Create a record of everything that transpired at the hearing, let the employee review the protocol, and sign after confirming everything is in them
- Date of decision :Per the obligation to consider the employee’s claims, a final decision must occur a few days after the hearing. The final notification should be in writing
Issuing a letter of dismissal
In the event of dismissal, the employer must give the employee a letter of dismissal, with the date of its issue and the date the dismissal takes effect. It is not customary to write the reason for the dismissal, in order not to harm the employee, but as long as it is not related to his skills or professional function, it is worth mentioning it. For example, if the employee was fired due to financial constraints, reorganization of the workplace, etc. Receiving a letter of dismissal is very important for the employee because it is required of him to receive unemployment benefits from Social Security. Therefore, failure to issue a letter of dismissal exposes the employer to a claim on the part of the employee, who may demand compensation in the amount of unemployment benefits he would have received from Social Security, had he been given the letter. Of course, in this situation, the employee must prove that payment was withheld, due to failure to present a letter of dismissal and not due to lack of an appropriate qualifying period, which would not entitle him to unemployment benefits, even if he presented such a letter.
Prior Notice
The law stipulates the employer’s obligation to give the employee prior notice. This depends on the employee’s seniority and whether he is a monthly employee (employee on a fixed salary) or a daily employee (on a variable monthly wage). However, the maximum notice period in both cases is one month. The employer can choose whether the employee will actually work during this period or not. However, if he chooses not to, he is obligated to pay the employee for the month of prior notice. an important note is that in the event of resignation, the employee must give the employer prior notice. Note that in the event of resignation, it will be the employee who is obligated to give the employer prior notice.
Final Account
At the end of the employment relationship, both at the time of dismissal and at the time of resignation, the employer must finalize an account as part of the employee’s last pay slip. In addition to his last salary, the employee must be paid a relative convalescence allowance and vacation redemption, insofar as he has unused vacation days. When the employee is fired or has resigned as dismissal , the employer must also pay him severance pay (when the provisions for the compensation component in the pension fund were 6% and not 8.33%). In addition, the employer must provide the employee with Form 161 and a letter of release of funds. These are intended to transfer the pension fund to the employee’s ownership and allow him, if he so desires, to withdraw these compensation funds, in whole or in part.
In conclusion, a proper adherence to the correct termination of an employee / employer relationship may prevent unnecessary claims on the part of the employee and leave a positive reputation of the employer and the business towards the employee.
Are You A Business Manager? Proper termination of the employee/employer relationship may prevent unnecessary lawsuits.
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