Unemployment Compensation

The issue of unemployment compensation is very complicated. Therefore I will attempt to explain this issue as briefly as possible, and with as little Hebrew as possible.

Who is insured? Who is the insurer?

The State of Israel insures every one of its citizens through National Insurance on condition that he is either a permanent citizen, temporary resident, or has a work permit. There are restrictions as well. These include: the insured must be over 20 years old (it could be 18 years old in cases where the person seeking compensation is the sole wage-earner in the family.) He must be also under the retirement age. He also cannot be self-employed. There is one exception that is not well-known. A recently released soldier from his obligatory army service or from Sherut Leumi will be insured for the first 12 months after his release (Chayal Meshuchrar). The maximum number of days he or she is entitled to receive compensation will be 70 days.

Waiting period

A person wishing to receive unemployment compensation must have worked at least 360 days out of the last 540 days. But if his salary was based on a daily wage, then he will need to have worked only 300 days out of the last 540 days. Since June 2009, the law has changed. Now people over the age of 25 will be entitled to partial unemployment compensation if they have worked less than the minimum 360 days.

Limitations

The claim for compensation must be filed at the nearest office of National Insurance (Bituach Leumi) within 12 months after the first time you presented yourself at the Government Employment Office (“Lishkat HaTa’asukah”). Please understand that we are speaking of two entirely separate entities. In order to be entitled to unemployment compensation you must be unemployed. If the government, through the Lishkat ha’Ta’asukah, cannot find you a job, then you will be entitled to unemployment compensation.

What is the criterion used by the Lishkat HaTa’asukah?

They offer you a suitable job according to your health, your physical fitness, the same type of employment you have had for the last three years, the salary offered will be at least the same as what you would receive from unemployment compensation, and you will not be required to relocate. The maximum amount of days that you can receive unemployment compensation depends on many factors, such as your age, how many dependents you have, etc, but at most you will receive 180 days! If you have two places of employment and receive two salaries, and you are fired from one of them, you will be entitled to unemployment compensation from the job you were fired from.

Quitting a Job

If you quit your job for any reason, you will still be entitled to unemployment compensation. But if you quit for an unjustified reason, unemployment compensation will be paid only after 90 days from the day you stopped working.

Summary

Unemployment compensation is calculated using so many different factors that it is almost impossible to summarize in this brief document. If you have any questions or doubts, please contact us. Please be aware that if you want to quit you must do it according to the law. Remember that as the employer has obligations towards you, you also have obligations towards your employer, such as notifying your employer at least 14 days prior to you leaving your job.

Sincerely,

Tzvi Szajnbrum, Attorney at law