As part of the ongoing accompaniment of office clients in the labor law field, a client turned to us recently with a question of how to act in a case in which an employee resigned and left the workplace immediately, without any prior notice. Is the employer entitled to compensation from the employee? Can he set it off from the last salary payment due to the employee?
The law states that both the employer and the employee are required to give each other advance notice in the event of dismissal or resignation. Such notice must be given in writing and specify the day of the notice and the day of entry into force of the dismissal or resignation. Length of the advance notice varies depending on the time of employment and type of employee. When an employee receives a monthly salary the length of the advanced notice is one day for each month in the first six months of employment, two and a half days per month thereafter and once one year of employment is completed, one-month notice. In the case of other employees (e.g. work by the hour) the advance notice period is a day per month in the first year, 14 days and one day per each month of employment in the second year, 21 days and one day per each month of employment in the third and one month after the third year of employment.
The advanced notice days are regular working days but the employer can waive the requirement from the employee to work in these days, provided that the employer will pay the wages in respect of such days.
But what happens when an employee resigns and refuses to work in the advanced notice days? In such case the employee must pay the employer compensation in an amount equals to the regular salary for the period for which notice was not given.
Can an employer deduct the compensation for the last notice of the employee? Before the specific law took effect there was an extension order that determined that this amount can be offset, however while the law does stipulate entitlement to compensation it is silent regarding the question of whether compensation may be offset from the employee's salary. The recent years’ labor Courts holding is that it is possible to offset from the employee’s salary an amount equal to the employee's regular salary for the period for which notice was not given. However, it is important to carefully examine any offsetting to ensure that only amounts that may be offset are indeed offsetting.
In any case, an employer who finds himself in a hopeless situation when an employee resigns and leaves the job immediately without giving notice for resignation, is entitled to receive compensation for such conduct by law but it is advisable to consult with lawyers in the field for the implementation of the provisions of the law and case law.