Ending an employment relationship in Israel without the right notice period, or without holding a Shimua hearing first, can turn a routine exit into a labour-court claim. This guide sets out the statutory Israel employment termination notice period by seniority, when a pre-termination hearing is legally required, and how severance and garden leave fit together — so a foreign employer can terminate compliantly the first time.
What is the Israel employment termination notice period by seniority?
Israel’s Notice of Dismissal and Resignation Law sets the minimum notice by length of service: one day per month worked during the first six months, then it scales up, reaching a full 30 days once the employee has completed one year of service. A written employment contract may specify a longer notice period, but never a shorter one.
In practice this means a new hire terminated after two months owes roughly two days’ notice (or payment in lieu), while an employee of two years or more is owed a full calendar month. The notice clock runs from the day the termination letter is delivered, not from the decision date. Getting the Israel employment termination notice period wrong — even by a few days — is one of the most common and most avoidable mistakes foreign employers make when closing out an Israeli role.
What is a Shimua hearing, and when is it legally required?
A Shimua (literally “hearing”) is a pre-termination meeting at which the employee must be told the real reasons being considered for dismissal and given a genuine chance to respond before a final decision is made. Israeli labour courts treat skipping this step as a serious procedural defect, independent of whether the underlying reason for dismissal was valid.
The hearing must happen before the decision is finalised, not as a formality after the fact. Courts have awarded compensation — sometimes equal to several months’ salary — purely for a defective or missing hearing, even where the termination itself was otherwise justified. Employers terminating for performance, redundancy, or conduct should document the invitation, the meeting, and the employee’s response.
Does severance (Pitzuim) apply on top of the notice period?
Yes, in most cases. An employee dismissed after at least one year of continuous service is generally entitled to severance pay equal to one month’s salary per year worked, funded through the 8.33% severance accrual most employers fund monthly into a pension or provident fund.
Where severance is funded monthly under a full Section 14 arrangement, the accrued fund typically satisfies the employer’s severance obligation in full at termination, simplifying the exit. Our Pitzuim severance pay guide covers the calculation and Section 14 mechanics in detail — this guide focuses on notice and the hearing requirement that happens before severance is even calculated.
Can an employer place a terminated employee on garden leave instead of working the notice period?
Yes. An employer may pay out the notice period in lieu of work (garden leave), keeping the employee on payroll and benefits for the notice duration without requiring attendance. This is common where a departing employee has access to sensitive client or product information.
Garden leave does not shorten the statutory notice period or change the severance calculation — it only changes whether the employee works during that time. The employment relationship, and all statutory contributions, continue until the notice period ends.
Redundancy vs. termination for cause: does the process differ?
The notice period and Shimua hearing requirement apply regardless of the reason for termination — redundancy, performance, or conduct all require the same procedural steps. In other words, the Israel employment termination notice period itself does not shorten for cause-based dismissals; only the severance and unemployment-benefit treatment can differ, along with how much documentation a court will expect to see justifying the decision.
| Ground for termination | Notice & hearing required | Severance due | Documentation courts expect |
|---|---|---|---|
| Redundancy | Yes, same as any dismissal | Yes, after 1 year service | Business case for the role elimination |
| Performance | Yes, same as any dismissal | Yes, after 1 year service | Written warnings, improvement plan |
| Misconduct | Yes, same as any dismissal | May be reduced or denied if severe | Investigation record, specific incident |
How does an EOR manage the Israel employment termination notice period for you?
CWS Israel, as the legal employer of record, runs the notice calculation, schedules and documents the Shimua hearing, and calculates severance against the accrued Section 14 fund — so a foreign company managing the employee’s day-to-day work is not left to interpret Israeli dismissal procedure alone.
This matters most for companies with only one or two Israeli employees, where a single procedural mistake at termination can lead to a disproportionate labour-court exposure relative to the size of the team. See our guide on what an EOR costs in Israel for how this is priced.
Frequently Asked Questions
What is the minimum notice period for terminating an employee in Israel?
It scales with tenure: roughly one day per month worked during the first six months, rising to a full 30 days once the employee has completed one year of service. A contract can set a longer notice period but never a shorter one.
Is a Shimua hearing legally required before every dismissal in Israel?
Yes, in virtually all dismissals. The employee must be told the real reasons under consideration and given a genuine chance to respond before the decision is finalised. Skipping it can result in compensation even where the dismissal itself was otherwise justified.
Does severance still apply if the employee is paid out on garden leave?
Yes. Garden leave only changes whether the employee works during the notice period; it does not change the notice length or the severance calculation, which is based on tenure and salary.
Does an employee dismissed for misconduct still get severance in Israel?
Severance can be reduced or denied for serious misconduct, but this requires a documented investigation and a clear factual basis — it is not automatic, and employers should take legal advice before withholding it.
How does an EOR help a foreign company terminate an Israeli employee correctly?
CWS Israel, as the legal employer of record, calculates the correct notice period, schedules and documents the Shimua hearing, and runs the severance calculation against the funded Section 14 account, so the foreign company does not have to interpret Israeli dismissal procedure itself.
How long has CWS Israel supported employers through Israeli terminations?
CWS Israel was founded in 2014 and has supported Israeli employment matters, including terminations, ever since, with every payroll and compliance cycle independently reviewed by PwC.
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