Qualifying Resignation
An employee who resigns under 'qualifying circumstances' is entitled to severance pay with the same tax treatment as dismissal. Qualifying circumstances include: substantial deterioration of working conditions, relocation due to marriage, health conditions preventing work, childbirth (within 9 months), and reaching retirement age after 10+ years of service.
Non-Qualifying Resignation
Voluntary resignation without qualifying circumstances does not entitle the employee to statutory severance pay. However, if the employment contract or pension fund provides for severance regardless of resignation reason (Section 14 arrangement), the employee may still receive severance from the pension fund.
בסיס חוקי
- Severance Pay Law 5723-1963
- Section 14 – General approval
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.