Legal Updates

An employee who was offered worse conditions upon termination of a termed contract is entitled to severance pay

May 27, 2023

At the end of the season a soccer player of Hapoel Haifa was offered a materially lower salary for the next season.

The Labor Court accepted the claim and held that the player is entitled to severance pay. Non renewal of a contract is as dismissal and the employer must demonstrate that it offered the employee to renew the contract, under at least the same conditions. Here, the employment contract ended in 2019, after which the player was offered to renew the contract only at a significantly lower salary, and therefore he is entitled to severance pay for the period of his employment.