How to Maintain Employee Trust in an Emergency?

What to Do When the Economy is Shut Down and Employees Are Worried?

In recent weeks, I spoke with a small business owner in Tel Aviv who found himself in a difficult situation. Due to the emergency order that came into effect, he had to shut down his business and didn't know how to deal with employees who suddenly stopped receiving regular salaries. He was worried about maintaining relationships with employees and the possibility that they would lose trust in him. What happened next was no less challenging. Employees began to express dissatisfaction, and communication between them and the employer became tense. They understood that the employer wasn't to blame for the situation but still felt abandoned. The employer, on his part, understood that without open and clear communication, he could lose valuable employees.

The most important point is to manage expectations and find a way to communicate openly with employees to maintain trust even in emergencies.

What Do the Courts and Law Actually Consider?

In Israel, employers are obligated to ensure the welfare of employees even in particularly difficult situations. The Notice of Pre-Termination and Resignation Act, 2001, defines the duty to inform employees about significant changes in the business's status. The law is intended to ensure that employees receive all necessary information to prepare for changes. Israeli courts also recognize the importance of clear and respectful communication between employers and employees. They emphasize the importance of managing expectations effectively to avoid unnecessary crises. Employers need to show employees that they value them, even when they cannot provide what was previously promised.

When Is It Relevant — Checklist

✓Have your employees heard from you about the upcoming changes?
✓Do you have a backup plan for partial or deferred salary payments?
✓Have you conducted personal talks with employees to check their well-being?
✓Have you clarified to employees the legal and economic status of the business?

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The Specific Law That Applies

חוק רלוונטי

Notice of Pre-Termination and Resignation Act, 2001

Defines the duty to inform employees about significant changes in the business's status

Violation of the law may expose the employer to legal claims.

This law states that employers must inform employees in advance of any changes that might affect their status. This includes not only terminations but also changes in working conditions that could constitute a breach of the original employment terms. In an emergency, it's important to clarify to employees the implications and the steps the business intends to take to handle the situation.

Questions Everyone Asks — But No One Asks the Lawyer

Do I have to continue paying full salaries even when the business is shut down?−

There is no legal obligation to pay full salaries if the business is shut down, but it's important to manage expectations and discuss other options with employees, such as partial or deferred payments.

What counts as a significant change in employment terms?−

Any change affecting salary, working hours, or social conditions can be considered significant and must be announced in advance.

What to do if employees threaten to leave?−

The first step is to have an open discussion with the employees, understand their concerns, and try to find common solutions.

What is the cost of breaking the law?−

Violating the law can lead to financial claims and additional legal penalties.

How can I protect myself in the future?−

Ensure open communication with employees, update them on any changes in advance, and make sure to have them sign updated contracts if necessary.

Real Situations — Which Side of the Line Are You On?

A store manager informed his employees about a cut in working hours but did not discuss other payment options with them. Result: employees lost trust.
A restaurant owner held personal talks with each employee and offered partial payment until the situation improved. Result: employees remained loyal.
A high-tech team leader assumed employees would understand the situation and did not explain all the implications. Result: employees began looking for other jobs.

What to Do Right Now

The first and most important step is to have an open discussion with employees. Update them on the situation and clarify the steps you intend to take. Do not sign changes to employment terms without employee consent. If you do nothing and the problem escalates, you might find yourself without a skilled and loyal workforce. Don't let the crisis intensify — act now to maintain relationships with your employees.