Labour law6 min read10/24/2026

Dismissed While on Sick Leave in Israel: The Prohibition, Hearing, and Payment of the Remaining Balance

Sick leave itself does not make an employee “undismissable,” but the Sick Pay Law, 1976 prohibits dismissal during a period for which the right to sick pay remains in effect. The decisive factors are the balance of accrued days, the date of the dismissal notice, the medical certificate, and compliance with the hearing procedure.

Numbers and facts

•90 days — the maximum protection period when an accrued balance is available
•Since 2009, the prohibition has been expressly established in the Sick Pay Law
•1976 — the year the Sick Pay Law was enacted
•₪30,000 — the total compensation in one published case, not a standard amount

When Dismissal During Sick Leave Is Prohibited

An employer may not dismiss an employee who is absent due to illness as long as the employee is entitled to payment for accrued sick days. According to the Employment Service, the protection applies within the available balance, but for no more than 90 days. To receive payment, a medical certificate must be submitted containing the employee’s details, the period of incapacity for work, information about the physician, and the date of issue. If the paid days have already been exhausted, a valid medical certificate alone does not provide the same protection against dismissal.

Exception: The Decision Was Made Before the Illness

The Ministry of Labor’s official guidance identifies an important exception: the prohibition may not apply if the dismissal notice was delivered before the period of illness began. Therefore, the court considers not only the employment termination date but also the sequence of events—the invitation to the hearing, the hearing itself, the decision, and the onset of incapacity for work. The employer cannot retroactively amend documents or present a decision already made during the illness as an earlier one. The employee should retain the hearing invitation letter, dismissal notice, medical certificates, and correspondence with management.

Sick Leave Does Not Cancel the Right to a Hearing

Before dismissal, the employee must be given a genuine opportunity to learn of the employer’s allegations and respond to them. Illness does not cancel this obligation, and a formal conversation after a decision has already been made does not replace a hearing. If the employee’s health condition prevented participation, the means of communication, the opportunity to prepare a response, and whether the employee’s arguments could genuinely have affected the decision will be material when assessing the procedure. Published Nevo court materials include decisions in which both the lack of a proper hearing and dismissal during illness were considered.

Who Pays for the Days Before the Employment Termination Date

Sick days during the existence of the employment relationship are paid by the employer when there is an accrued balance and a proper medical certificate. If, for the same period, the employee receives a payment prescribed by law due to incapacity for work, such as a work injury or accident benefit from the National Insurance Institute, ordinary sick pay is generally not paid. If the dismissal notice was lawfully issued before the illness, the former employer generally does not pay for days falling after the actual termination of the employment relationship. When the dismissal itself is found unlawful, the claim may include unpaid accrued sick pay and compensation for procedural defects.

What Happens to the Unused Balance

Accrued sick days are a right to payment for a medically certified absence due to illness, not a cash account that is automatically settled upon dismissal. The general framework of the Sick Pay Law does not establish automatic payment of the entire unused balance after employment ends. A different outcome is possible if a more favorable rule is provided by an individual contract, collective agreement, or extension order. It is particularly important to check such special terms in sectors where sick leave arrangements are collectively regulated, including agriculture and transportation.

FAQ

Can an employee be dismissed on the first day of sick leave?

If the employee has an accrued entitlement to paid sick leave on that day, dismissal during the protected period is generally prohibited. However, the outcome may differ if the dismissal notice was properly delivered before the illness began.

Must the employer postpone the hearing because of illness?

There is no automatic answer for every situation: what matters is whether the employee can participate fully and present their position. Conducting the hearing in a way that effectively deprives the ill employee of the opportunity to respond may be deemed a procedural defect.

Will all remaining sick days be paid upon dismissal?

As a general rule, the unused balance is not automatically paid. The individual contract, collective agreement, and extension order applicable to the sector should be checked, as they may provide more favorable rights.

Can an employee work elsewhere while also receiving sick pay?

No. The Ministry of Labor’s official guidance excludes entitlement to sick pay if the person worked during the period of illness for wages or other remuneration. Such work may also call the basis for the absence into question.

What should be checked on the payslip after dismissal?

The dates on the medical certificate, the sick leave balance, the notice date, and the actual employment termination date should be compared. It is also worth checking separately whether the contract or collective rules provide for additional payments.

What to do next

Collect the medical certificates, payslips showing the sick leave balance, the hearing invitation, the dismissal decision, and correspondence with the employer. Then reconstruct the precise timeline: when the illness began, when the hearing took place, and when the notice was delivered. If there are discrepancies, the applicable agreements and official rules should be checked before signing the final settlement.