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Labour law · 12 Aug 2026

Resigning for health reasons and entitlement to severance pay

Resignation for health reasons is one of the situations in which an employee keeps the right to severance pay even when the departure is initiated by the employee. The law treats it as resignation equivalent to dismissal, provided everything is done correctly and on time.

· Labour law · Translated from the Hebrew original

When the right arises

The ground applies in two situations: the employee's own health, and the health of a family member who needs the employee's care. In both, it must be shown that the circumstances really prevented continuing to work: not that it "became difficult", but a documented inability to perform the job.

What must be proved

  • A medical document addressing the condition and its effect on the ability to perform the specific job.
  • A written communication to the employer stating the reason for resignation, before work actually stops.
  • Evidence that you requested an adjustment where it was relevant: a change of position, a change of shifts, a reduced workload.

Why it is important to state the reason in advance

A resignation letter "for personal reasons" that is explained half a year later almost never works. The reason must be stated at the time of resignation, so that it becomes part of the documents and not a later interpretation.

What to do before submitting the letter

Ask the employer in writing for an adjustment of the conditions. A refusal, or silence, is key evidence: it shows that continuing to work was not possible. Where an adjustment was possible and the employer did not provide it, the employee's position is much stronger.

Protection during illness

As long as the employee is on accrued, paid sick days, there is a restriction on dismissal. An employer who dismisses during this period is exposed not only to severance pay but also to a claim for recognition of the dismissal as unlawful.

What is owed at the end of such an employment

Severance pay is calculated as usual: the last salary multiplied by the years of work, taking into account the application of Section 14. In addition, redemption of vacation, recuperation pay and unpaid overtime are checked. When the health condition is related to work, there may also be rights against National Insurance.

When the employer refuses

  • Ask for the refusal in writing with reasons.
  • Gather the medical documents and the correspondence.
  • Send a demand with a calculation of the amount and a reference to the ground.
  • If there is no response, file a claim in the Labour Court; such cases often end by agreement when the position is backed by documents.

National Insurance and health condition

When the health condition is related to work (an injury, an occupational disease or aggravation due to working conditions), entitlement against National Insurance is examined in parallel. This is a separate track from severance pay, with its own deadlines, and failure to apply in time may reduce the rights.

What to do before submitting a resignation letter

  • Obtain a medical opinion addressing the specific job and not only the diagnosis.
  • Request an adjustment of conditions in writing and keep the reply.
  • Check the balance of accrued sick days: sometimes it is better to use them before ending the work.
  • Consult before drafting the letter: the wording is what determines the ground.

Resigning to care for a family member

The ground also applies when the health condition is that of a spouse, child or parent who needs care. Here too, medical documents are required addressing the extent of the care needed, as well as evidence that you asked for an adjustment of working hours before resigning. The earlier and better documented the request, the stronger the position.

What to check in the final settlement

  • Severance pay for all years of work, taking into account the application of Section 14.
  • Redemption of vacation days and recuperation pay.
  • Completeness of the contributions to pension and study fund.
  • A letter releasing the funds to the fund: without it the money remains stuck even when there is no dispute.

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