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Is your employer in trouble? You deserve a large compensation from National Insurance - voila! Sentence


Employees whose employer becomes insolvent and owes them money can file a lawsuit to exhaust their rights to the National Insurance Institute and receive a refund of debts amounting to approximately NIS 140,000

"If your employer is on the verge of collapse and has not paid you the wages or compensation you deserve, you must act quickly" (Photo: ShutterStock)

B and F did not understand how this was happening to them.

After working for years at a large jewelry company, suddenly and without any prior warning, their salary stopped going into the bank account.

They thought it was a mistake, that maybe the money was delayed a day or two, but very quickly they discovered more suspicious signs.

Apart from the salary delay, the pension provisions were also not deposited, and the two realized: the company, which was a stable workplace and a source of security for them, is in significant difficulties and is about to close.

The main concern of the two was that the company would become insolvent and they would be left without a salary, without severance pay and without additional rights due to them.

What do you do in such a situation of the collapse of the employer?

Who do the workers turn to and how do they secure their rights?

"In a situation where the employer owes money to the employees, there are two options," says attorney Oz Radie, who helps employees exhaust their rights in employer insolvency proceedings. "The first and familiar option is to file a lawsuit with the Regional Labor Court.

The second option is to submit a debt claim after an order has been issued to open insolvency proceedings against the company."

According to him, in light of the systemic changes made with the entry into force of the Insolvency and Economic Rehabilitation Law, the debt claim must be submitted directly to the National Insurance and not to the trustee, with the aim of receiving a significant portion of what which is due to the employees.

"Among other things," says attorney Radieh, "the employees can demand the salaries that have not been paid to them, including the severance pay, social rights and the amounts intended for the pension fund that have not been transferred."

It is possible to claim wages of up to NIS

123,000 "The employee can claim a relatively large amount of debt," says Attorney Radie. According to him, any employee can claim a debt of up to NIS 123,409 for wages and severance pay, as well as payment of a debt of up to NIS 18,986 Shekel for contributions not made by the employer to provident funds.

"As part of the lawsuit, the employee can also demand the social rights he is entitled to," says attorney Radieh.

Among other things, it is possible to demand payment for days of advance notice due to the employee, redemption of vacation days, recovery fees (up to a period of two years), contributions to a provident fund and a training fund (for the last year of work) and even salary 13, if it is due to the employee.

"It should be taken into account that income tax, national insurance and health insurance will be deducted from the compensation paid to the employee by the National Insurance," explains Attorney Radie. The contributions to the workers' provident fund and the training fund will be paid directly to them by the National Insurance

"Not all rights can be claimed from National Insurance, but it is certainly possible to receive a significant part of them," says Attorney Radie. According to him, every employee who wants to exhaust his rights should know that there have been changes in the subject following the new insolvency law, which came into effect in 2019

. A debt regarding an employer, against whom an order to initiate proceedings was issued on September 15, 2019, will be submitted directly to the National Insurance. On the other hand, a debt claim regarding an employer against whom a permanent liquidation order or a bankruptcy order was issued until September 14, 2019, will be submitted to the official in the procedure. After he approves it, She will be transferred to the National Insurance.

"A claim must be filed within six months"

"Employees who want to claim the debt owed to them from an insolvent employer should know that they must file the debt claim within six months," notes Attorney Radieh. Employees should be aware that in order to exhaust their rights, a liquidation claim must be filed against the company. That is, if the employer himself or one of his creditors (for example the bank) does not submit a request for an order to open proceedings, the


will be required to submit the request themselves, so that they can claim what they deserve.

Fast," concludes Attorney Radie.

"Don't be afraid to claim the rights you deserve from the National Insurance and hurry to collect the relevant documents, whether it's payslips, your employment agreement and more."

Is your employer on the verge of insolvency?

Do you need assistance in claiming the wages and social rights you deserve?



or by phone

- 077-2314230

To attorney Oz Radie for initial consultation on the matter,

to the firm's legal website.

The article is courtesy of Zap Legal

. The information presented in the article does not constitute legal advice or a substitute for it, and does not constitute a recommendation for taking procedures or avoiding procedures. Anyone who relies on the information in the article does so at their own risk.

In collaboration with legal zap

  • Sentence

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  • insolvency

  • compensation

Source: walla

All news articles on 2023-02-01

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