A player in the Hapoel Ra'anana soccer team signed an employment agreement for three seasons that included an option for the employer to terminate the contract at the end of each of the seasons. At the end of the first season, the team informed the player of the termination of the contract between the parties.
The Labor Court rejected the team's contentions and held that the employee is entitled to severance pay. The law deems as termination a case of an employee who was employed under a termed contract and at the end of which the employer did not offer him to renew the contract. Notice to the employee under a termed contract of termination of the termed contract constitute as termination. Here, the parties entered into a termed contract comprised of three termed contracts. Hence, the provisions of the law regarding entitlement to severance pay in the event of non-renewal of the contract at the end of the term apply even when termination is at the end of the first of the three periods, and even when it is not a matter of mere non-renewal, but rather of an employer that has actively took steps to terminate the engagement. Therefore, the employee is entitled to severance pay.