absence

Loss of work ability – rights and benefits

Moshe

An employee who loses his ability to work due to illness or accident may find himself in a situation of loss of income and livlihood. In order to avoid this scenario all residents of Israel are insured against loss of work ability due to illness or accident by Bituach Leumi (Israel’s social security), this via their mandatory monthly contributions via their payslip. These contributions cover many different types of social security: unemployment, old age stipends, child stipends, employer bankrupcy, reserve army duty, maternity leave – just to name some of them).

In addition to Bituach leumi, many employers insure their employees in loss of work ability insurance, although it’s not mandatory. Employees can also purchase loss of work ability insurance privately. All pension plans also include loss of work ability insurance built in to the policy.

It is extremely important that you understand the implications on this subject so that if one finds themselves in this situation they know where to turn and what to do in order to minimize the beaurocracy and ensure they receive what they are eligible for.

    So, what is loss of work ability?

Loss of work ability is when an employee loses their ability to work and earn income due to injury as a result of illness or accident.

Loss of work ability can be temporary (usually up to 3 months – 90 days, after which the employee recovers and returns to work at full capacity) or permanant (non reversable and the employee will not be able to return to prior ability) and may occur in several situations:

1. Complete loss of work ability: the employee is unable to work in any type of work due the injury he/she has incurred.
2. An employee who, due to injury, his/her ability to earn income has declined and his/her pay has reduced considerably.
3. An employee who cannot continue to work in a position that fits his profession or knowledge and education due to injury.

It is important to note that insurance companies include explicit definitions for loss of work ability in the profession of the employee who is insured in the policy.

    Bituach Leumi

The coverage is dealt with by several departments, depending on the type and severity of the injury.
General disability dept

    Via a monthly stipend to employees injured due to illness or accident and as a result their income earning ability has been reduced by at least 50%, or by 60% if permanent loss of work ability or 45% if temporary loss of work ability.

      Work related accidents dept

    Employees who were injured during the course of work or due to a work related illness (one recognized as a profession causing illness).

      accident dept.

    Employees injured in accidents that are not work related (traffic accidents that were not on the way to or from work, household accidents, etc) and as a result are unable to work. This type of injury usually will enable employee to receive monetary compensation for up to 90 days. If the damage is not remedied after 90 days, the employee will need to file for general disability stipend.

    Note: The amount of compensation is not based on the employee’s actual income, but rather defined in the Bituach Leumi law and equal for all employees. Someone who had a high income may find he gets less compensation than his/her salary was, sometimes substantially. In addition, Bituach leumi usually pays stipends to those eligible between the 17th and the 20th of the month for the previous month (as opposed to salaries which are paid by the 9th of the month).

      Private insurance policies

    Private insurance policies, whether via a collective policy for employees by the employer or via a personal insurance policy the employee took out privately, usually include a waiting period of 3 months prior to eligibilty for compensation. Many policies will include a clause under which the insurance company commits to a retroactive payment for the first three nmonths when the injury is prolonged. There is a provision that excludes monthly contributions in case of a claim on the policy due to loss of work ability. There usually is a separate clause committing to payments according to the policy in addition to Bituach Leumi stipends. The payment from the insurance policy is at least 75% of the average wages in the year previous to the injury (as opposed to Bituach Leumi which is different and much lower).

    In short, an employee who has been injured and as a result loses work ability is eligible for money from Bituach Leumi and if insured via a loss of work policy via an insurance company, he would be eligible for money from them as well. If the injured employee is totally dependant on a family member for daily routine (dressing, bathing, eating. etc) the family member may also be entitled from Bituach Leumi and the tax authority. This applies in case of death of the employee as well.

    In all cases, it is highly recommended to consult with a certified and professional insurance agent or lawyer who deals with labor laws and loss of work ability. The above advice does not replace the need for such professional advice, is not legal advice and may not be applicable to all cases. It is merely a post with basic knowledge to help employees understand the issue better.

    The right to an hour off work/day when spouse is in active reserve army duty

    Moshe

    IDF soldiers in action
    The women’s employment law was updated on July 3, 2017 (correction 58). Accordingly, an employee will be eligible to be absent from work for one hour per day during the period of time when their spouse is in active reserve duty (miluim) in the I.D.F. under the following circumstances:

    1. The period of the spouse’s active reserve duty is no less than five consecutive days.

    2. The employee has at least one child under age 13.

    3. The employee is employed in a full-time position as accepted in place of employment.

    4. The employee notified the employer of the intent to utilize this right and presents the employer with a copy of the spouse’s proof of actual active reserve duty.

    The above applies to men and women.
    Payment for above hours are not to be deducted from salary.
    This does not apply to employees who are eligible for paid parent (breast feeding) hours or pregnancy hours.

    Announcing “Employee’s Rights Handbook” book launch and lectures

    Moshe

    Book launch and lecture will be held:

    In Jerusalem: on May 19th, 2015  19:00  at AACI Jerusalem, The Glassman family center Pierre Keonig st. corner of 2 Poalei Tzedek st., 4th floor (opposite Hadar mall)

    In Tel-Aviv: on June 17th, 2015 16:00 at AACI Tel-Aviv, 94 A Allenby st.

     

    The “Employee’s Rights Handbook”

    The first comprehensive, English language guide to Israeli payroll.
    Whether  you are an employer or an employee, a new oleh or an English speaker who has trouble with the Hebrew terms, this publication is for you!

     

    Employees:

    Understand the terminology, layout and Hebrew on your payslip

    Know your rights

    Understand the labor laws

    What needs to be itemized on the payslip?

    What are the things you need to know upon termination?

    How many vacation days are you entitled to?

    Is Purim a paid holiday?

    What are the rights of a pregnant employee?

     

    Employers:

    Do your payslips comply with all the new regulations?

    Do you issue employees “notification of terms of employment” as required?

    Are employees given a fair hearing prior to termination?

    Understand what obligatory payments exist in Israel

    What is allowed to be deducted from an employee’s salary

    Are you aware of penalties for infringement on regulations and labor laws? (avoid this by knowing what needs to be done)

     

    In this guide you will find:
    * An overview of labor laws, regulations, expanded regulation orders, collective
    agreements and statutes

    * The make-up of the Israeli payslip

    * Social Security

    * Health Insurance
    * Income tax

    * Holiday pay, sick day payment, vacation, overtime payment, bereavement leave,
    maternity leave

    * Minimum wage

    * Youth employment
    * Advance notice                       And much more!

     

    A must for employers and employees alike. Get your copy today! This 107 page publication in hard-copy is not available in stores, on-line orders:

     

    http://www.israpay.com/announcing-the-release-date-for-employees-rights-handbook/

    Sick leave during advance notice period

    Moshe

    Scenario: Employer notifies employee of termination or employee notifies employer of resignation

    Fact: During this period the employee is required to work, unless waived by the employer

     

    Question: what happens when the employee is sick and procures a doctor’s note ?

    Answer:

    If an employee is sick during advance notice period and produces a doctor’s sick note to the employer, he is eligible for sick pay, according to the sick day law and contingent on his accumulated sick day balance.

    The advance notice period is a work period for all intent and purposes, employer-employee relations still exist, for better and for worse.

    This is true when the employer has given notice before termination and when an employee has given notice before resignation.

    The date of termination or resignation and end of employer-employee relations remain the same as it originally was written in the advance notification and is not pushed back due to the sick days.

    Announcing the release date for Employee’s Rights Handbook !!!!

    Moshe

    Finally, the long awaited Employee’s Rights Book is to be released in Hard copy. The release date is Sunday March 15, 2015

    At present, this is the only format. There may be a PDF purchase option at a later date.

    The book is 107 pages of vital information for employers, employees and anyone interested in Employee’s rights, labor laws and the makeup of payroll in Israel.

    Announcing the first and only English language guide in simple easy to understand language !!!

    The Book also contains a dictionary of common Hebrew payroll terms and their English translation, examples of payroll forms, useful contact information, tips and more.

    Get your copy today,  and know your rights !

    price: 100 sh (including mailing). Optional self-pickup in Jerusalem (85 sh).
    Payment via credit card or paypal, use this link:

    <a href=”http://www.vcita.com/v/israpay/make_payment?pay_for=Employee’s%20Rights%20Handbook&amount=100″ target=”blank”>pay</a>

    or follow the schedule an appointment on the left hand side of the home page of this site.
    If you encounter a scheduling error notice, send the following details:
    (Name, mailing address, email address, phone/cell number. If you wish that the invoice be made out to a different name than the one you supplied, please state)
    to moshe.israpay@gmail.com and An invoice will be emailed to you. When you open the invoice you will have the ability to pay.

    Check payments option:  send a check made payable to Moshe Egel-Tal along with the above info to

    Israpay
    P.O. Box 44429
    Jerusalem 9144302

     

     

     

     

    Breast-feeding hours

    Moshe

    Q: What is Breast-feeding hours and whom is eligible ?

    A: Breast-feeding hours is a special perk that is embedded in the Women’s employment law (1954). Any woman who gave birth is entitled to be absent from work for up to one hour, without deduction from her pay,for a period of up to 4 months from the end of maternity leave (currently 98 days from date she gave birth). This is regardless of whether she actually breast-feeds her baby or not. However, since a woman can take additional leave without pay immediately and in continuation of her maternity leave, she may lose this right as eligibility starts from the end of the maternity leave and does not include non-paid vacation.
    In addition, there is no additional time allocated by the law if a woman had more than one baby in a birth, but the time of eligibility would start and end later, as she is entitled to a longer maternity leave. In this case she still gets 4 months.
    Breast-feeding hours is a mandatory labor law in Israel in both public and private sectors.
    The only criteria, aside from being within the 4 month period from the end of maternity leave is a full-time position.
    If a woman works less than full time, she is not eligible at all.

    Partial Vacation Days

    Moshe

    What happens if an employee takes a half day of paid vacation ?

    In terms of payment, they would receive a full day’s pay. However, the issue isn’t as simple when debiting an employee’s vacation day balance. Apparently, as reflected by a recent labor court verdict, which determined that any day that an employee shows up at work is to be considered a work day. The same day cannot be counted twice !

    The same would apply towards half days taken as sick days. In actuality, they are work days and travel expenses will need to be paid for them. The missing hours should be deducted as such and the payment should be itemized separately.

    The employer and employee can agree on payment for half days and there are certain sectors that have explicit sections about this issue.

     

    Working hours on Israel’s Memorial Day & Independence Day

    Moshe

    Memorial Day of Israel’s Fallen soldiers is Monday April 15th, 2013

    According to the fallen soldiers law (1963), any employee who is one of the following:
    *  parent
    *  grandparent
    *  spouse
    * child
    * sibling

    of a fallen soldier, is eligible to be absent from work on this day without liability of deduction from pay.

     

    Independence Day (Yom Ha’atzmaut)

    Israel’s 65 birthday is Tuesday April 16th, 2013

    According to the Independence Day law (1959), This is a paid national holiday. This applies to all employers in Israel.

    The day prior to Independence Day (Memorial Day or Erev Yom Ha’atzmaut) is a shortened work day, by law.
    Employees who work an 8 hour workday, need work only 7 hours.
    Employees who work a 9 hour workday, need work only 8 hours.
    Places of employment that have a collective or personal agreement, or custom which is more favorable to the employee than the law, these would take precedence.
    There is no deduction for missing hours for this day.

    To be paid for Independence Day, you need to have at least 3 month’s tenure with your employer and you need to work the day before and the day after Independence day.

    Employers that are not included in the list of places that need to operate on a holiday which is published by the Prime Minister’s Office are not allowed to force their employees to work on Independence Day as publicized by the Israeli Labor Court.

    Employees who work for an employer who is included in the list, are entitled to 200% for all hours worked from 24:00 (midnight) on Memorial Day until 24:00 on Independence Day.
    Payment for Independence Day needs to be itemized separately on the payslip.

     

     

    Risk Pregnancy (Shmirat herayon)

    Moshe

    If a woman is diagnosed by her doctor to be in risk pregnancy, under certain conditions she may be eligible for a stipend from Social Security (bituach leumi).

    Section 58 of the social security law defines risk pregnancy that entitles insured women to risk pregnancy stipend; absence from work during pregnancy due to medical condition that stems from pregnancy and endangers the woman or her fetus.

    The conditions are:
    1) Doctor’s note which explicitly states that the woman is in risk pregnancy.
    2) the woman is absent a minimum of 30 consecutive days from work due to this condition.

    The woman is entitled to continuous deductions to any and all social benefits (kupot gemel, keren hishtalmut, pension plans) provided she pays her part.

    Most employers continue the payments and collect the employee’s part when she returns to work after maternity leave.

    This period of time is considered to be continuous work period for tenure, social benefits. In other words, employer-employee relations are still in effect.

    Forms for application and more information is available on the Social Security website:

    www.btl.gov.il