In 15.9.2019 came into force the Insolvency and Economic Rehabilitation Law which had many effects, notably as regard to benefit submission requirements, its examination and benefit payment.
To whom the claim should be submitted
Salaried employee whose employer was subject to order to initiate proceedings after 15.9.2019 - shall submit a claim to the National Insurance Institute directly.
A copy of the claim will be transferred to the insolvency and economic rehabilitation proceedings official. To submit a claim, click here. Salaried employee whose employer was subject to a permanent liquidation order, or bankruptcy order until 14.9.2019 - shall submit a benefit claim to the permanent trustee appointed in the proceeding. Once approved by the trustee, the claim will be transferred to the National Insurance for further handling.
A copy of the claim will be communicated to the official receiver. To submit a claim, click here.
Please note, a claim filed beyond 12 months from the order issuance date without being accompanied by a time limit extension request, detailed and motivated along with relevant certifications - will be rejected.
Documents to be attached to the claim form:
- Last 12 pay slips from the place of work.
- Letter of dismissal
- Bank account statements where wage is deposited - during the period for which work wage debt is claimed, as well as the two months preceding and following the pursued debt period.
- Bank account certificate mentioning the worker's details, the name of the bank, the branch and bank account number. Worker living abroad - shall attach a bank account certificate mentioning the worker's details, bank details and a SWIFT code or IBAN.
- Provident fund deposits and withdrawals statement.
- Power of attorney - a worker filing his or her claim through representation, shall attach to the claim a power of attorney compliant with the law, even for power of attorney made outside of Israel. The power of attorney shall include a special mention covering the submission of a claim for bankruptcy and liquidation benefit to the National Insurance and the execution of all actions in relation thereto.
In addition to above documents, workers of the Palestinian Authority Judea and Samaria, as well as foreign workers, must also attach to the claim a Registration form (BL/1050). The form shall be filled out and sent online:
In addition to mentioned documentation and attaching a registration form, the following documents must be sent along with the claim:
Worker of the Palestinian Authority Judea and Samaria who worked inside the green line territories shall attach the documents below:
- Working permit in good standing at the time of the employment subject to the claim.
- Valid stay permit.
- Bank account certificate mentioning the worker's details, the name of the bank, the branch and bank account number.
- Pay slips for verification of claimed working period and wage items.
- Matash statements (Administration of employer service at the Population and Immigration Authority). The following statements must be attach: Monthly data summary, monthly payments and yearly wage data.
Worker of the Palestinian Authority Judea and Samaria who worked outside the green line territories shall attach the documents below:
- Working permit in good standing at the time of the employment subject to the claim.
- Valid stay permit
- Bank account certificate mentioning the worker's details, the name of the bank, the branch and bank account number
- Pay slips for verification of claimed working period and wage items.
- Certification prints - Statement 300 from the civil administration.
Foreign worker shall attach the documents below:
- Working permit in good standing at the time of the employment subject to the claim.
- Valid stay permit
- Bank account certificate mentioning the worker's details, the name of the bank, the branch and bank account number. Worker living abroad - if the bank account is abroad, the certificate shall also include worker's details, a SWIFT code or IBAN
- Pay slips for verification of claimed working period and wage items.
- List of deposits
- Card of verification of traveler's details with history of passports (from the Population Administration).
Claim handling process
Claim in proceeding in which an order has been issued until 14.9.19:
- The claim will be submitted to the trustee appointed in the proceeding, in order to determine whether to approve or deny the claim.
- Once the claim approved by the trustee, it will be transferred to the National Insurance for further handling.
- The claim will be examined and assessed according the National Insurance Law and other legal provisions, such as the Annual Vacation Law, the Prior Notice of Dismissal and Resignation Law, the Severance Pay Law, and so on.
Claim in proceeding in which an order to open procedures against the employer has been issued as of 15.9.2019:
- The claim will be submitted to the National Insurance directly.
- The claim will be examined and assessed according the National Insurance Law and other legal provisions, such as the Annual Vacation Law, the Prior Notice of Dismissal and Resignation Law, the Severance Pay Law, and so on.
- Approval or denial of the claim.
- If the claim is approved, you will be paid a benefit in the manner described below:
Benefit payment in a proceeding where the employer is a private individual (one):
If the worker is found eligible for the benefit - he or she will receive a payment against the debt of work compensation (up to 5 months of wage only).
Benefit payment in a proceeding where the employer is a corporation:
Order to open proceedings - at this stage the National Insurance will pay for the debt of work compensation (up to 5 months of wage only).
At liquidation - the National Insurance will pay for the debt of work compensation, other elements of remuneration and severance pay.
In economic rehabilitation of the corporation - the National Insurance also will pay for other elements of remuneration and severance pay sought in the claim, this only upon the technical approbation of the corporation's economic rehabilitation or the sale of its business operation to another corporation, when the worker did not resume working in the corporation.
Please note that if the National Insurance denied your claim, you are entitled to challenge the decision before the competent judicial authority of the Insolvency, in accordance with the deadlines prescribed by law.