Conditions of entitlement


An employee may be eligible for a benefit if his employer was subject to a permanent liquidation order, a bankruptcy order or an order to initiate proceedings.

The employer can be a private individual, a corporation, a partnership or a cooperative society.

The benefit involves payment of wage and severance pay owed to him by his employer, as well as the debt owed to the provident fund for arrears accumulated by the employer.

Who is eligible?

  • A salaried employee whose employer was subject to a permanent liquidation or bankruptcy order - and a trustee was appointed in the proceeding.
  • A member of a moshav or kibbutz for at least 7 years, as well as a member of a cooperative society that is a renovating kibbutz, if he or she worked either in the society's factory or on its behalf.
  • A foreign worker or a worker from the Palestinian Authority or Judea and Samaria - staying legally in the country.
  • Survivors of a deceased salaried employee who was entitled to the benefit.

Who is ineligible?

  • A self-employed worker
  • A controlling shareholder in a closed company
  • A foreign worker and worker from the Palestinian Authority or Judea and Samaria - illegally staying in the country.