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Some of the Halachic Considerations of Firing
By Dayan David Grossman, Rosh Bet HaVa’ad, Lakewood
As the economy moves up and down in these trying times, giving rise to many unconventional businesses while turning many industries into mere shadows of what they once were, crunching big, established institutions and teaching us to always expect the unexpected, these are some of the questions we often hear at the Bet Din:
“Baruch Hashem, over the past few years we have been very successful in building up a thriving business and we currently have over 20 employees. Unfortunately, due to various forces within our industry, our company’s business has shrunk to the point that we can no longer take a distribution adequate to live on the standard we were living on in the past. All our employees are working with an “at-will” agreement as our contract does not specify a term and allows us to fire them at any time. We are constantly grappling with the following issues:
[1] Are we allowed to fire employees in order to keep the company running at a profit? We understand the economic situation and would love to keep all our dedicated employees. However, we find it extremely difficult to do so.
[2] Is there a reason to try and keep an employee – “Lifnim MiShurat HaDin” – beyond the letter-of-the-law?
[3] If we are allowed to fire them, will we have to give any severance pay if no such stipulation was agreed upon at the time of employment?”
Working “At-Will”
Typically, when working “at will” (without a specified term) an employee can be fired at any time. A certain amount of warning may be appropriate or necessary depending on the specific arrangement and accepted practice in the industry. However, there are a number of Halachic considerations to keep in mind.
Firing a Poor Man
It is well-known that the highest form of Tzeddaka is giving a capable person a job by which he or she will feel maximized[1]. This is an even higher level of Tzeddaka than giving a needy person money since giving employment allows the worker to maintain a healthy level of dignity. Therefore, it is definetely comendable and a Mitzvah of Tzeddaka to keep any employee that fits into this category. However, a person does not have an obligation to hire or maintain employees that do not make sense from a business standpoint[2].
Based on this concept, some Poskim rule[3] that since hiring a needy person is a form of Tzeddaka, the act of hiring constitutes a Neder (vow) to Tzeddaka. Therefore, once hired for a certain time-period, it would be prohibited to fire a poor person even if the time commitment was merely verbal in manner and where it may otherwise be permitted to fire the worker. If necessary, the boss might have to make a Hatarat Nedarim[4].
Firing the Standard Employee
HaRav Moshe Feinstein זצ”ל takes a novel approach regards to firing employees who are not classified as an “Ani” – a poor person. He asserts[5] that any time a worker is hired without term, it is as if they were hired forever. Therefore, unless you cannot afford to keep them as employees, they are not qualified for the job, or another new cause arises making it impossible to keep the worker, the employer simply can never fire them.
Consequently, even if the boss would like to take his relative into the business, or a more qualified replacement is found (assuming the current employee is also considered qualified, albeit not as qualified), the employee cannot be fired. Therefore, if the boss needs the work done, and this employee can effectively perform this work, he must be kept on the payroll. The Hazon Ish[6] and others[7] argue and allow a boss to fire any employee who is not under contract. Wherever possible, one should take the strict position of HaRav Moshe Feinstein זצ”ל.
“Serara”: Positions of Authority
There are certain circumstances in which one cannot fire the worker according to all Poskim (if no time-limit was implied). That would be in cases where the employment is classified as a “Serara”[8] – a position of authority. There are many different opinions as to exactly which positions fit into this category. The most typical example would be a Rosh Yeshiva[9] or a Rav[10]. Certain types of Hazanim[11] or Shamashim[12] might also be included in this classification. Some[13] extend this classification to any position where the worker does not have to answer to the ones who hired them. HaRav Moshe Feinstein זצ”ל writes that this would include some types of Kashrut supervisors.
Severance
The only situation that there would exist a true obligation to pay severance upon firing an employee, would be if it was agreed upon (even verbally) at the time of employment or if there would be a clear and prevalent Minhag to do so. Although in Eretz Yisrael such a Minhag does exist[14], in the United States it does not. Arguably, however, in the field of education some maintain that such a Minhag does exist and therefore there may be an obligation to offer a package of “Hodesh L’Shana” – one month’s salary for every year that the employee was employed. This would only apply to the actual Rebbes and teachers and not to others working in a Hinuch organization.
Still, the Sefer HaHinuch writes[15] that since the concept of severance is written in the Torah in regards to an Eved Ivri (a Jewish slave, who is awarded a package upon the termination of his employment), it is commendable to offer some type of severance to any employee who is fired. This is merely Lifnim M’Shurat HaDin – beyond the letter-of-the-law.
Writing a Contract
This is all true where there wasn’t any previous agreement. However, as with most monetary matters, if a clear contract was signed, the agreement would govern each specific relationship. The Hafetz Hayim[16] and others strongly implore us to write a clear contract before entering into any monetary relationship. Much unnecessary hardship and strife can be avoided by writing an agreement prior to hiring an employee.
Sources:
[1] פ”י ממתנות עניים ה”ז
[2] רמ”א סיו”ד סי’ רנ”א סעי’ ג’ דפרנסתו קודמת. וע”ע בביאור הגר”א שם שהוא מדין אבידתו קודמת מדכתי’ (דברים ט”ו: ד’) “אפס לא יהיה בך אביון”
[3] שו”ת בית שלמה בשם ספר המקנה (קידושין נ”ט) וראייתו מדברי הרמ”א (סי’פ”א) שפוסק שהאומר לבנו העשיר “למוד עם בנך” אע”פ שמבטיח לו שכר פטור מלשלם לו, כיון דלאו עני הוא. והטעם הוא מכיון שהוא בין כך חייב ללמוד עם בנו, יכול לומר לו “משטה הייתי בך” ומוכח מדבריו שדווקא עשיר אבל עני יש משום נדר לצדקה ולכן חייב. אולם בשו”ת צמח צדק (חו”מ סי’ ל”ט) חולק ודוחה ראייתו עיי”ש. ובמהרש”ם (ח”א סי’ ל”ח) ובמנחת פתים (סי’ של”ד סעי”ד) נשאר בצ”ע בדין זה.
[4] ואף דהקצות (שם סק”ג) פוסק שאחרי שהוא נדר שוב א”א להתירו דנעשה עי”ז חיוב של שכירת פועלים כבר חלקו הנתיבות (שם) ועוד פוסקים דיכול להתיר את נדרו.
[5] אגרות משה חו”מ ח”א סי’ ע”ה
[6] ב”ק סי’ כ”ג ס”ק ב’
[7] דברי מלכיאל (ח”ג סי’ קנ”א) ובמהריא”ז ענזיל (חו”מ סי’ ט”ו)
[8] עי’ ברמב”ם (פ”ד מהל’ כלי מקדש הכ”א) “ואין מורידין לעולם בשררה שבקרב ישראל אלא אם סרח”
[9] עי’ דובב מישרים (סי’ ל”ח)
[10] עי’ ברמ”א יו”ד סי’ רמ”ה
[11] מרן באו”ח סי’ נ”ג סכ”ה
[12] ערוך השולחן חו”מ סי’ של”ג סעי’ ט”ו
[13] אגרות משה (חו”מ ח”א סי’ ע”ה)
[14] עי’ שו”ת מנחת יצחק (ח”ו סי’ קס”ז)
[15] מצות הענקה (מצוה תפ”ד) וז”ל “ונוהגת מצוה זו (הענקה) וכו’ בזמן הבית וכו’ ומכל מקום אף בזמן הזה ישמע חכם ויוסף לקח שאם שכר א’ מבנ”י ועבדו זמן מרובה או אפי’ זמן מועט שיעניק לו בצאתו מעמו מאשר ברכו השם”, עכ”ל.
[16] עי’ בספר שפת תמים מבעל חפץ חיים פ”ה בהגה”ה.