Employee and Employer Rights During the Coronavirus Crisis

In light of the many inquiries from employers and employees regarding employee rights, we have compiled for you a set of questions and answers that we have been asked, in order to make it easier for you when reaching a decision. This file will be updated daily.

If you have a question that does not appear in the file, you are welcome to get in touch and we will make sure to answer everyone.

1. Must an employee agree to go on unpaid leave? Not scheduling employees for shifts and placing them on unpaid leave requires the employee’s consent. If the employee did not give consent, and even objected to the employer’s demand, the employee may claim payment for the days on which they received no wages. Conversely, an employee who agreed to the employer’s demand will not be able to argue otherwise. An employer who wished to place an employee on forced leave, and was refused by the employee, must consider whether to dismiss the employee or pay their wages.

2. Who is responsible for maintaining insurance continuity in the pension fund? During unpaid leave, there is no obligation on the employer to continue making pension contributions, and it is therefore advisable to instruct employees to contact the pension fund directly and check how pension continuity can be maintained. A pension fund into which no deposits are made for 5 months becomes inactive — which may harm the employee in the short term and even in the long term vis-à-vis new employers.

3. Is an employer who has placed employees on forced leave of more than 30 days required to pay National Insurance? The employer is required to pay the first two months from the beginning of the unpaid-leave period.

4. Can employees be dismissed without a hearing? The current situation should not serve as fertile ground for undermining employees’ rights, and therefore any employer wishing to dismiss an employee is required to do so properly — that is, by delivering a letter, conducting an appropriate hearing while listening to the employee’s arguments and weighing them with an open heart and a genuine willingness. A dismissed employee is entitled to receive all their rights from the employer, including notice days.

5. Can employees in quarantine be required to work from home? The Ministry of Health has issued a blanket sick-leave certificate for anyone required to be in quarantine, and therefore the employer cannot require the employee to continue performing their tasks.

6. Does going on unpaid leave affect accrued vacation days? Going on unpaid leave does not affect the vacation-day quota, and the employee’s rights accrued to date are preserved.

7. Can an employer make use of the vacation days accrued to the employee’s credit? An employer has the option of requiring an employee to take concentrated annual leave, not exceeding 7 days. Where the leave exceeds 7 days, the employer may approach the employees and, with their consent, extend the paid leave without any prior notice.

8. Can an employer reduce the percentage of a position without consent? Any action that contradicts the terms of employment and conflicts with what was agreed between the employer and the employee requires the consent of the parties. A reduction in wages or a reduction of a position may be regarded as a worsening of conditions, and the employee may resign as though dismissed.

9. Can an employee produce a sick-leave certificate during unpaid leave and request payment from the employer? Sick pay is intended to compensate for regular wages during illness. Therefore, an employee is not entitled to wages during unpaid leave, and the employer is not obligated to pay for sick days. Note that during this period, unless otherwise agreed, social benefits are not paid, and vacation, convalescence pay and so on do not accrue.

10. Is it better to dismiss good employees or to place them on unpaid leave? The state allows employers to place their employees on unpaid leave, and the employees will receive (subject to meeting the National Insurance conditions) unemployment benefits, while during this time the business owners can regroup, all while preserving the workplace to which they will return after the crisis ends. Therefore, placing employees on unpaid leave is a temporary solution that will protect both your business and your employees, together.

11. Can a pregnant employee be placed on unpaid leave? In accordance with the guidelines of the Commissioner for the Employment of Women at the Ministry of Labor, and despite the coronavirus pandemic, a pregnant employee cannot be placed on unpaid leave without obtaining a permit. An employer who wishes to terminate the employer-employee relationship must complete the appropriate form.

12. Is there an obligation on the employer to reinstate an employee returning from maternity leave? In principle the employer is obligated to reinstate the employee, but under the circumstances that have arisen, and where the other employees have been placed on unpaid leave, the employee should apply to National Insurance to realize her entitlement to unemployment benefits.

13. What is the amount of unemployment benefits an employee is entitled to receive during unpaid leave? The National Insurance Institute set the amount of unemployment benefits at 70% of the employee’s wages, up to a total of NIS 10,000.

14. What is the age range for eligibility for unemployment benefits? In accordance with the guidelines of the National Insurance Institute, an employee who has reached the age of 20 and has not yet reached the age of 67. Therefore, employees who have reached the age of 67 will not be able to receive unemployment benefits.

15. Is a salaried employee who also holds an exempt-dealer business entitled to receive unemployment benefits if placed on unpaid leave? Eligibility for unemployment benefits is determined in accordance with the conditions detailed on the National Insurance website, and where the employee also holds an exempt-dealer business in parallel, the unemployment benefits may be lower.

16. Is an employee who resigned because of the coronavirus crisis entitled to severance pay? The Severance Pay Law defines several situations in which resignation is treated as dismissal. For example: worsening of conditions; poor health; resignation after childbirth and caring for a child; resignation due to relocation; resignation on grounds of age; resignation due to enlistment in the police or army; non-renewal of an employment contract; the death of an employer or employee.

17. The employer asked me to return the vehicle — is this a worsening of conditions? It must be examined whether the employee pays for the upkeep of the vehicle or whether the vehicle is for work purposes only, in which case, in view of the situation, the employer may demand the return of the vehicle. Therefore, this does not necessarily constitute a tangible worsening of conditions that would grant the employee the right to resign as though dismissed.

18. Is it worthwhile to use up the remaining vacation days before going on unpaid leave? Using up vacation days before going on unpaid leave may harm the conditions of eligibility for unemployment benefits if the number of days the employee spends on unpaid leave is less than 30 days. Although realizing the vacation days will put money in the employee’s pocket in the near term, the incidental consequences must be taken into account.

19. Can one work for another employer during unpaid leave? Engaging with another employer will necessarily harm eligibility for unemployment benefits, and the employee must consider which conditions they prefer to receive. It is quite possible that looking for other work will assist the employee, in that the duration of the unemployment period will not be shortened and the employee will be able to realize their entitlement in the future.

20. Can a parent on maternity/parental leave be placed on unpaid leave? Placing a parent on maternity/parental leave on unpaid leave without the parent’s consent requires obtaining a permit from the Commissioner for the Employment of Women at the Ministry of Labor, Welfare and Social Services. An employer who does not act accordingly is breaking the law.

21. Are the self-employed entitled to receive unemployment benefits? The self-employed are not entitled to unemployment benefits, but there are exceptions, in accordance with the National Insurance Order (Classification of Insured Persons and Determination of Employers), 5732-1972. The order provides that certain professions — such as tour guides, instructors, lecturers, teachers and artists — whose place of work has ceased operating as a result of the coronavirus.

22. Can an employee working two different part-time jobs claim unemployment following being placed on unpaid leave? There is harm to the employee’s income and, ostensibly, they should submit an appropriate application. At this moment there is a lack of clarity, and the recommendation is to submit the application to National Insurance.

23. Is an employee who was dismissed in the past, received unemployment benefits, and has now been dismissed again entitled to unemployment benefits? The question relates to a repeat claim for unemployment benefits. Such a claim may be submitted in accordance with the conditions set out on the National Insurance website. Each case is examined on its own merits with respect to age, the number of days accrued and so on. One should visit the National Insurance website and examine eligibility.

24. Can an employee earning the minimum wage agree to a reduction in their wages? The Minimum Wage Law is an integral part of the protective laws that establish mandatory rights, and neither the employer nor the employee is entitled to agree between themselves on a reduction of wages below the rate set.

25. Can an employee who has entered a period of quarantine be dismissed? It is prohibited to dismiss an employee during the quarantine period, and the employer must pay the employee sick days out of the quota of sick days the employee has accrued. If the employee has no remaining sick days, they will not be entitled to wages.

26. Can an employer reduce an expense reimbursement for an employee performing their work from home? Absolutely yes. The purpose of expense reimbursement is to prevent the employee from being out of pocket and to indemnify them for expenses they were required to incur in order to perform the work (mainly travel).

27. Can an employee undergoing fertility treatments be placed on unpaid leave? An employer wishing to place a pregnant employee, or one undergoing fertility treatments, on unpaid leave must apply to the Commissioner for the Employment of Women at the Ministry of Labor to obtain a permit, and where the employee consents, this can be done immediately.

28. Is a dismissed employee entitled to payment for prior notice? As a rule, the employee must make themselves available to the employer during the notice days, and as long as the employee does not wish to work during this period, they will not be entitled to payment for these days.

29. Is a controlling shareholder in a company entitled to go on unpaid leave and receive unemployment benefits? On the matter of a controlling shareholder in a company, there is no entitlement to unemployment benefits; but despite this determination, a number of additional judgments have held otherwise, because the circumstances were different. Therefore, each individual case must be examined on its merits, checking whether an employer-employee relationship existed.

30. Is a dismissed employee receiving a senior-citizen pension entitled to unemployment benefits? A dismissed employee who submits a claim for unemployment benefits will be entitled to receive the higher of the two benefits.

31. What steps must be taken in order to place employees on unpaid leave? The employee must be given written notice of being placed on unpaid leave, its implications must be explained to them, and their consent obtained. An employee who refuses to go on unpaid leave, and whom the employer does not wish to continue employing, must be dismissed and given all the conditions to which they are entitled.

32. Can the Passover holiday gift for an employee who has gone on unpaid leave be cancelled? During the unpaid-leave period the employee does not accrue rights (vacation, convalescence pay, pension and so on), and therefore the employer is obligated to give gifts to the employee. An employer who does not wish to give gifts to employees must check whether there is a collective agreement that provides otherwise.

33. Can an employer submit an unemployment claim on behalf of an employee in order to assist the employee? The answer to this is negative. Each employee is required to submit an unemployment claim independently and to apply to National Insurance and the Employment Service in order to realize their rights.

34. Is the employer required to take the employee back after the unpaid-leave period? Absolutely yes. The employer-employee relationship has not ended but has entered a freeze for the period defined in the document given to the employee. At the end of the period the employer must take the employee back, and if the employer wishes to end their employment, they must act in accordance with the law and give the employee their rights.

35. Were there any changes to the overtime-hours quota during the coronavirus pandemic? Indeed there were. The Minister of Labor, Welfare and Social Services signed a general permit for the employment of workers in overtime in order to cope with the coronavirus, subject to the following limitations: *In a work week, an employee shall not be employed for more than 67 work hours, including overtime, provided that the quota of overtime hours in a work month does not exceed 90 overtime hours. *The length of a work day, including overtime, shall not exceed 12 work hours; however, an employee may be employed for 14 work hours, including overtime, no more than 8 times a month.

36. Can an employee on maternity leave be placed on unpaid leave? No. A parent on maternity leave cannot be required to go on unpaid leave.

37. What are the rights of an employee who is ill during the coronavirus pandemic? This answer is divided according to several dates on which the sick-leave certificate was issued, and each is treated differently: A sick-leave certificate issued before 15.3.2020 that included 7 sick days will be recognized in full even after that period, if that period is extended. A sick-leave certificate issued from 15.3.2020 up to and including 21.3.2020 will be recognized at most up to and including 21.3.2020. Beyond this date, no further sick-leave certificate will be recognized. A sick-leave certificate issued from 15.3.2020 onward will not be recognized for the period falling from 22.3.2020 up to and including 16.4.2020.

38. Will a work accident be recognized for an employee required to work from home who is injured during their work? It is quite possible, and the answer will depend on the circumstances. Where the accident has a connection to the work and there is a causal link between the work and the accident, it is possible that this accident will be recognized as a work accident.

39. During the coronavirus period, must an employer continue to carry out wage garnishments? Absolutely yes. A garnishment that was imposed and delivered to the employer must continue to be applied to the amount permitted by law — as long as the employee continues in their work.

40. Does going on unpaid leave harm the employee’s right to convalescence pay? Absolutely yes. Entitlement to convalescence pay will not be counted for the period in which the employee was on unpaid leave.

41. Will maternity benefits be harmed for a pregnant employee who was placed on unpaid leave / dismissed as a result of the coronavirus pandemic? Maternity benefits will be calculated according to the wage base for unemployment benefits, and since the rate of unemployment benefits is lower than the wages, the maternity benefits will be lower.

42. Is an employee who worked for two employers in parallel and was sent on unpaid leave entitled to unemployment benefits? Where the employee was placed on unpaid leave for a period of 30 days or more, or was dismissed, a claim for unemployment benefits may be submitted.

43. What is Form 100? Form 100 is a compilation of computerized pay slips, received automatically from the employer’s payroll system directly into the National Insurance systems.

44. Does an employee who went on unpaid leave whose employer left the vehicle with the employee harm their unemployment benefits? Where this is unpaid leave of more than 30 days and you have accrued 12/6 months of unemployment, leaving the vehicle will not harm the entitlement to unemployment benefits.

45. Does a claim for unemployment benefits require a minimum number of hours per month? No. The benefit is paid according to a calculation of the monthly wage and not according to the hours the employee actually worked.