Calculation of severance pay with varying wages in summer and winter
I have been working at a private factory for over eight years. Currently, worker layoffs are taking place at the factory. In the summer, we get orders, and the number of working hours and salary increase. However, annually from October, working hours are sharply reduced; often we work 4 days a week. Thus, if in summer the salary is 5000-6000 shekels, then during the time I mentioned, from October, it's only 3000-4000. In this case, how is severance pay (pitzuim) calculated — based on the average salary for 3 months or annual? Is such a situation considered a deterioration of working conditions?
Answers (1)
You have a good question, therefore, in this case, it would be correct to calculate severance pay as the average between (the average salary for 3 months in summer plus the average salary for 9 months in the year), multiplied by the number of years worked. Moreover, you need to familiarize yourself with the collective agreement for your type of activity. There you will be able to find a specific answer to your question. Yaakov Shnitman, Adv. Labor Law