Can Job Dismissal Be Recognized as a Work Injury?

Can Job Dismissal Be Recognized as a Work Injury?

By: Adv. Yaakov Shnitman – Labor Law Specialist

Dismissal from work is rarely easy, especially for employees over the age of 40. Many struggle to reintegrate into the labor market, which can lead to emotional and psychological distress. This raises an important question: Can dismissal be classified as a work injury, qualifying for compensation from the National Insurance Institute?

A precedent-setting decision by the National Labor Court gives a clear answer.

Case Summary

A 41-year-old employee at Visa Cal was initially dismissed in 2003 due to downsizing. In 2006 he returned to work, only to be dismissed again in 2008, this time due to alleged dissatisfaction with his performance.

Following the second dismissal, the employee experienced severe psychological distress including anxiety, insomnia, loss of appetite, and memory issues. He was unable to return to work and filed a claim to have his dismissal recognized as a work injury.

The Regional Labor Court rejected the claim, arguing that dismissal is not an exceptional event. The court also noted that the employee only sought medical treatment 2.5 years later and did not provide evidence of humiliating dismissal.

Ruling of the National Labor Court

The employee appealed. The panel, led by President Yigal Plitman, Judge Varda Wirth-Levane, and Judge Neta Ruth, ruled that the case should be returned to the lower court, where a medical expert should be appointed to assess causality.

If a link is established between the dismissal and the mental health condition, the case will be recognized as a work injury, entitling the employee to benefits.

Conclusion

Unlawful and emotionally damaging dismissals are not uncommon, especially in the modern employment landscape. Many workers are unaware that they may have the right to claim compensation via Bituach Leumi in such cases. Our office provides full legal support in labor law, including dismissal procedures, severance calculations, Form 161, and appeals to the National Insurance Institute.