Labour10/8/2026

Court: Entitlement to Pension Contributions Begins on the First Day of Work

The Beersheba Regional Labor Court ordered a company to pay NIS 890,000 to a former employee as compensation for the loss of his entitlement to a disability pension. The court ruled that when active pension insurance exists, entitlement to contributions begins on the first day of work, even if the employee ends his employment before three months have elapsed.

Key facts

•Court: Beersheba Regional Labor Court
•Duration of employment: 52 days
•Compensation: NIS 890,000
•Qualifying period: five years
•The case number and judgment date are not stated in the source
•Legal basis: Extension Order concerning pension contributions

What Happened

The employee worked as a maintenance manager at Maimon David Packaging and Chemical Services for only 52 days. The company did not transfer several thousand shekels for this period to his pension fund, and as a result, the continuity of his insurance coverage was interrupted. When the next employer resumed the contributions, a new five-year qualifying period began for the employee.

Why Substantial Harm Occurred

Four years after the short period of employment ended, the employee became ill and applied for a disability pension. The pension fund rejected his application because the new five-year qualifying period had not yet ended. The court linked the loss of benefits to the former employer’s failure to make the contributions and awarded the employee compensation of NIS 890,000.

How the Court Interpreted the Employer’s Obligation

The panel, headed by Vice President Rachel Gross and joined by public representatives Mazal Abramson and Mordechai Edri, relied on the wording of the Extension Order. According to its interpretation, an employee who has an active pension arrangement is entitled to contributions from the first day of work. The employer may actually transfer the funds retroactively after three months of employment or by the end of the tax year—whichever comes first—but the termination of employment before that date does not eliminate the obligation to transfer the funds retroactively.

The Company’s Arguments and the Possible Appeal

The company argued that the employee did not provide the fund’s details when he began working, that he had received a warning about the loss of continuity of coverage, and that he provided incorrect information about his health. The court ruled that the right to pension contributions cannot be waived and that the employee’s health does not affect the employer’s obligation in this regard. The company’s representative announced its intention to appeal to the National Labor Court; the source does not state whether the appeal was actually filed or heard.

What this means for you

For an employee who already has an active pension arrangement, the short duration of employment does not in itself negate the right to contributions from the first day. The three months constitute a technical deadline for transferring the funds retroactively, not a condition for the right to arise. Failure to transfer the funds may result in liability not only for the missing contributions, but also for lost insurance benefits.

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Case analysis based on court rulings