The National Insurance and the Histadrut concluded: Within six months, the National Insurance will transfer payments to employees who lost their jobs due to businesses that went bankrupt due to the Corona epidemic.
Many businesses reached a state of insolvency and bankruptcy and approximately 10,000 claims were submitted to the National Insurance in order to receive wage payments, severance compensation and social rights, instead of the employers who could not pay.
At the end of 2019, near the beginning of the epidemic, it was decided that all issues of employee claims and provident funds in default of payment would be consolidated under the National Insurance and not as it was, something that on the one hand created fundamental changes in favor of the employees, reducing confusion between different ministries and on the other hand, caused very large amounts of applications to the National Insurance.
In the meeting that took place today between the Histadrut and the representatives of the National Insurance, it was agreed that in the first stage applications received under the new law, advances will be paid for wages. The advances will be in the amount of unpaid wages and will be given based on the reports of the lawyers filing the claims.
The next step requires more complex and individual information for the employee and his situation vis-à-vis the employer in terms of his social rights and the compensation he deserves due to the termination of his employment. As mentioned, it was agreed that at the end of the next six months the personal calculations will be completed and the funds will be transferred accordingly.
These days, the National Insurance is finishing training dozens of employees who will be assigned to handle cases of bankruptcy until the end, at the same time as the advances that will be paid.
Leon Peretz, Director of the Northern Region of the Histadrut: “As an integral part of my job, I have to take care of the workers who were left without a livelihood against their will, and any assistance they deserve should be their share. After a personal conversation with senior officials at the National Insurance, I believe that cooperation between us will bring results as soon as possible and in line with the thousands citizens. The corona period was difficult for both businesses and employees and the burden on the National Insurance with the unemployment and unemployment payments is clear and well known, but the time has come to concentrate efforts on the bankruptcy cases and so it will be.
Uriel Zazom, VP of Subsistence and Employment Allowances at the National Insurance: “The National Insurance employees worked around the clock during the Corona period, and are still dealing with the consequences of this period. We are concentrating efforts to handle the existing cases, which, following the legislation, are handled from end to end with us. After a conversation with the Histadrut, it was decided about changes in work processes and shortening bureaucracy as much as possible, which will lead to increased exploitation of rights and assistance to all employees whose salary was stopped due to insolvency.”
It should be noted, many cases were transferred without the required details and documents, and the handling of the cases requires complete information. Therefore, the National Insurance will hold a conference during the month of January with the participation of the lawyers to coordinate expectations, to brief them on how to submit claims in a manner that is appropriate for employees that will enable quick assistance for them.