New Ruling – calculation of an hourly employee’s last wage for the purpose of calculating the severance pay to which he is entitled will be made according to the partiality of his position throughout the term of his employment
Categories: Labor & Employment
On June 4, 2017, the National Labor Court rendered a judgment in Labor Appeal 44824-03-16 Y.B. See Resources Ltd. vs Adhenom Berh Teami (the “See Resources Case“). The judgment set forth a new ruling for the method of calculating severance pay for an hourly employee whose scope of work hours changes each month. As a general rule, the calculation of severance pay for an employee (who is not subject to the provisions of Section 14 of the Severance Pay Law, 5723-1963) is to multiply the last wage by the employee’s years of seniority.
