Application by employers for withdrawal of funds from severance pay funds for employees
This service enables employers who deposited funds for their employees in severance pay provident funds, or in severance components of pension insurance arrangements, to file an application for withdrawal of the funds.
Severance pay provident funds and pension insurance arrangements are intended to ensure payment of severance pay by employers to employees who are entitled to receive such payment pursuant to the Severance Pay Law, 5723-1963.
In certain cases, prescribed by law and procedures, employers are permitted to file an application to withdraw severance pay funds from their account in the provident fund or pension insurance arrangement.
- In cases where employees ceased working for reasons that do not entitle them to severance pay, and the amounts deposited in the fund:
- Were not also designated for annuity insurance.
- Were also designated for annuity insurance, however it has been set in a collective agreement or another agreement that they are refundable.
- In the event of death, bankruptcy, or liquidation of a company – only if employees’ claims pursuant to the Severance Pay Law have been satisfied, and a judicial ruling has been issued to that effect.
- Where there is a judgment of the Labor Court determining that the fund must return monies to the employers, and the remaining balance in their account will cover their obligation to pay severance pay to their employees.
- A signed affidavit (confirmed by an attorney or an authorized official of the Labor Court) or a declaratory judgment of the Labor Court, stating that the employees ceased working for reasons that do not entitle them to severance pay, and that the funds deposited in the fund
- Are not designated for annuity insurance.
- If such funds are designated for annuity insurance – a collective agreement or another agreement evidencing that they are refundable must be attached.
- A confirmation letter from a certified public accountant or tax consultant stating that the applicants no longer employ the employees and do not owe them any funds.
- Written confirmation from the severance pay fund in which the monies are held, stating that it has no objection to withdrawal of the funds, noting the account number and the names of the account holders.
- An undertaking to indemnify the provident fund if it is required to pay severance pay to the employees.
- In an application filed by heirs or an estate – the application must be signed by all heirs or the estate administrator, together with a probate order or inheritance order of the deceased (in addition to the documents listed in the previous sections).
- The service is provided subject to payment of a fee, in accordance with the details set out on the page “Types of Cases and Fees in the Labor Courts,” via the link to the Regional Labor Courts page – Types of Cases and Calculation of Fees.
- The receipt must be attached to the application.
An application filed without a receipt for the exact amount will be rejected.
The relevant case type, appearing in the first column of the table, is Release of Severance Pay Fund (appearing under the abbreviation TZ).
The relevant case type, appearing in the first column of the table, is Release of Severance Pay Fund (appearing under the abbreviation TZ).
Filing the application
The form must be printed, completed, and filed in two copies through one of the following ways:
Online – attorneys only
Only attorneys may file the application via the Net HaMishpat website, by logging in using the National Identification System or a smart card.
Technical assistance in filing the application may be obtained from the Information and Service Center of the Courts Administration. This does not constitute legal advice but rather technical assistance only.
By registered mail
- The application may be sent by registered mail to the Regional Labor Court within whose jurisdiction the workplace is located or where the work was performed, together with the receipt for payment of the fee.
- To obtain a fee payment voucher, applicants must arrive in person at the public reception desks of the Labor Court Secretariats.
Filing appendices with the application
The application and the appendices must be attached and sent together.
Arriving at the Labor Court in person
- The application may be filed at the public reception desk of the Secretariat of the Regional Labor Court within whose jurisdiction the applicants’ place of residence or the company’s address is located.
- Persons not represented by an attorney may file the application at any Labor Court in Israel (including the National Labor Court), and the application will be opened in the Regional Labor Court having jurisdiction to adjudicate it.
- Online appointment scheduling for the Labor Court Secretariat – an appointment may be scheduled with the public reception desk of certain Labor Court Secretariats via the GoVisit website.
- In some Regional Labor Courts, volunteer stations are available for technical assistance in completing forms.
By fax
The application may not be filed by fax.
Upon receipt of the application at the Regional Labor Court, the case will be forwarded for a judicial ruling.
The following are the ways to track the case:
Upon completion of filing, a confirmation number (reference) will be received, by means of which it is possible to track the processing of the case and obtain the case number in two ways:
- Under the “Tracking My Filings” tab
- Recent filings, confirmation numbers, and their processing status may be viewed.
- The status of processing the application should be checked.
- This may be done after the end of the business day following the day of filing the form.
- On the top bar of the website, under the “Filings” tab
- Clicking the tab will open a window in which “Find Filings by Reference” should be selected.
- Enter the reference number in the designated field and click the “Find” button at the bottom left of the page.
- The filing status will be displayed. The status of processing the application should be checked.
- This may be done after the end of the business day following the day of filing the form. The case number will appear there:
- Using the case number, the case may be reviewed by clicking the number.
- After entering the case, the folders in the case will appear on the right-hand side.
- During processing of the form, the Court may send requests for completion of documents. If such documents are not sent within the period specified, the case may be closed. Therefore, it is strongly recommended to carefully monitor the status of processing the application.
- Upon completion of filing, a confirmation number (reference) will be issued, by means of which progress of processing the application may be checked.
- It is possible to check whether notifications or rulings have been received in the case via the Net HaMishpat website:
- Log in using the National Identification System or a smart card.
- On the top bar of the website, enter the case number, click the “Find” button, and the case may then be reviewed.
- If the case number is forgotten or unknown, click the “Find Cases” tab, select “My Cases,” enter a date range, and a list of cases will be displayed from which the correct case should be selected.
- After entering the case, folders will appear on the right-hand side. Enter the “Paper File” folder, which contains all documents in the case, including rulings.
- Receipt of the mail by the Labor Court should be tracked, and after the end of the business day following the date of receipt, the processing of the application may be tracked in Net HaMishpat as follows:
- If an email address has been updated in the application, update notifications will be sent there by the Labor Court.
- To read the messages, click the link therein, which will lead to Net HaMishpat.
- Log in using the National Identification System.
- An envelope icon will appear next to the identification number. Clicking it will open messages from the Court.
- Another way to check the processing status on the Net HaMishpat website after logging in using the National Identification System:
- Click the “Find Cases” tab and select “My Cases.”
- Select a date range for the search.
- A list will be displayed from which the relevant case may be selected.
- Click the case number to review the case and check whether messages have been received.
- If an email address has been updated in the application, update notifications will be sent there by the Labor Court.
Please note, if there is any difference or conflict between the information on this page and the law, the provisions of the law will apply.
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