Israeli Labor Court: Employers May Be Entitled to Demand Medical Exams by Their Appointed Physician
Summary
- New employment law ruling: The Regional Labor Court held that, in exceptional circumstances when there is a genuine basis to question the credibility of a medical certificate, an employer may be entitled to require an employee to undergo a medical examination by a physician appointed by the employer, even if the employee has presented a valid sick leave certificate issued by a health maintenance organization (HMO).
- An exception to the rule: As a general rule, an employer may not require an employee to undergo an additional medical examination if the employee has submitted a valid sick leave certificate. The ruling, however, adopts a broader interpretation of the applicable Sick Pay Regulations, allowing a departure from this rule in exceptional cases.
- When may this right arise? The court emphasized that such a requirement may be justified only in exceptional circumstances when there are concrete indications that the sick leave certificate does not reflect the employee’s actual condition. For example, this may apply when there is reason to believe the employee is working elsewhere while on sick leave or has submitted a lengthy sick leave certificate immediately after receiving a notice of disciplinary hearing.
- Practical implications for employers: Although the decision was issued by the Regional Labor Court and does not constitute binding precedent, it may influence how employers address exceptional cases involving suspected abuse of sick leave, while balancing employees’ privacy rights against the employer’s legitimate interest in verifying the underlying facts.
The Regional Labor Court recently ruled that the time has come to entitle employers, under special circumstances, to demand that employees undergo medical examination by a physician on the employer’s behalf, even after an HMO has issued a valid sick leave certificate.
As a rule, employers are not automatically entitled to obligate employees to undergo a medical examination by a physician on the employer’s behalf if the employee presents a valid sick leave certificate from an HMO.
Pursuant to the Sick Pay Regulations (Sick Pay Payment Procedures), a sick leave certificate must not include any details about the employee’s illness or medical findings. Although this provision serves to protect employees’ privacy, it leaves the employer in the dark as to the reliability of the sick leave certificate.
This recent ruling expands and changes the interpretation of the provisions of the Sick Pay Regulations to some extent. The court ruled that it is warranted to expand the provisions of the regulations in particular exceptional cases, when an employer has real doubts as to the content and reliability of the sick leave certificate, and to entitle employers to demand that an employee undergo medical examination by a physician on the employer’s behalf, even after the employee has presented a valid sick leave certificate from an HMO.
In the above-referenced case, the employee submitted a sick leave certificate from her HMO for an extended period of time, immediately after receiving a summons to a disciplinary hearing. The employer had in its possession substantiated information that the sick leave certificate was unfounded and that, in fact, not only was the employee not ill, but had even started working at another company. The employer demanded that the employee report within 24 hours for an appointment scheduled in the employee’s hometown, in order to undergo a medical examination by a physician on the employer’s behalf, however the employee refused.
The labor court noted that employees can presently obtain sick leave certificates at the click of a button, without being examined by a physician, and opined that these circumstances undermine the purpose of the Sick Pay Regulations in that they sweepingly accept HMOs’ sick leave certificates. Therefore, in particular circumstances, employers will be entitled to challenge the reliability of sick leave certificates even if they were issued by an HMO. Furthermore, under exceptional circumstances, when an employee denies the employer its right to investigate the employee’s claim of illness while forcing it to artificially extend the employment contract and pay sick pay, the employer will be entitled to demand that the employee undergo a medical examination by a physician on the employer’s behalf.
The regional court ultimately ruled that the employee had acted in bad faith during her employment termination process while the employer had acted appropriately. Naturally, since the employee was already working at another workplace, her claim for sick pay was rejected.
At this stage, at issue, is an established rule of a regional labor court, rather than a binding precedent. Nevertheless, based on this ruling, we can assume that employers will be entitled to demand that employees undergo medical examination, but only in exceptional circumstances of suspected deceitful conduct on the part of an employee, such as presenting a sick leave certificate when there is concern that the employee is working elsewhere at the same time, or presenting a sick leave certificate for an extended period immediately after receiving a summons to a hearing.
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Labor Dispute (Tel Aviv) 58217-06-22 Galit Elbaz v. Orit Financial Services Ltd. (issued on March 2, 2025)
Adv. Lior Girshevitz is an associate in the firm’s Employment Department.
Barnea Jaffa Lande’s Employment Department is at your service to provide professional legal advice in this regard or concerning any other labor law issues.