Legal Updates

Employee must complain about a material deterioration in employment ‎conditions in order to prove entitlement to severance pay

December 14, 2015
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An employee resigned, and demanded severance pay as if she was dismissed, on the grounds that a transition to new offices that are remote from the previous ones is a material deterioration in her employment conditions that are circumstances under which an employee can resign and be deemed dismissed.

The Court dismissed the claim and held that the employee did not complain that the transition will encumber her, but announced the resignation months prior to the transition without mentioning that the resignation is due to a material deterioration in her employment conditions. Had the employee complained a solution might have been found. However, the real grounds for the resignation was the desire to improve the salary and, thus, when she received a higher salary job offer she announced her resignation.