- Pain and suffering unrelated to salary – In case of unfair dismissal, damages that may be imposed on the employer are not salary contingent. Underlying this ruling is the concept that pain and suffering experienced by an employee whose salary is low is not necessarily lesser than the pain and suffering experienced one whose salary is higher. The criteria in this case are different from damages for loss of earnings. The criteria to be taken into account in computing the amount of damages include the reason for dismissal, seniority, age and employee conduct.
- Employer Obligation to Record Working Hours - Employers must record employee work hours and failure to do so may lead to various sanctions. Aiming to facilitate claims for unpaid wages, the law has also reversed the burden of proof, creating a presumption that the employee has performed the maximum amount of permitted overtime hours. However, this presumption can be rebutted and if the employee fails to prove that she worked overtime or if the employer proves that the employee did not work overtime – the reversal of the said burden will not entitle the employee to any payment for overtime hours no worked.
- Retroactive Tax Deduction is not Necessarily Permissible – Employers who discover that they have erroneously failed to withhold required employee taxes, might find themselves in a predicament in which they are obligated to pay the tax without being able to deduct the amount from the employee (who is the bearer of the tax paid). Precautionary steps can prevent such a predicament. Among the precautionary steps are specifying on the pay-check that the remuneration is a gross amount, notifying the employee immediately of any error discovered and in such a case taking immediate action vis-à-vis the employee to reach an agreement as to the deduction of the tax payable from the employee's salary.
- The Levy Imposed upon Employers of Foreign Employees is Not Included in Computing Minimum Employment Costs in Public Tenders - The Supreme Court of Justice Ruled that non-inclusion of the levy imposed upon employers of foreign employees in computing minimum employment costs of employers who compete in public tenders, reflects a lawful and proper policy of encouraging the employment of local employees. The Supreme Court rejected the petition of employers of foreign employees to enjoin the state and other public bodies to include the levy in computing minimum employment costs.
- Prohibitory Fines on Interfering with Employee Unionization– In a recent case involving a major food chain, the court imposed a fine of 1.5M NIS on the employer for interfering with its employees attempts at unionization. The court ruled that declarations on behalf of the employer to the effect that it will not interfere in unionization are not enough and that the employer must act to implement an appropriate organizational culture and ascertain that managers do not act in an adversary manner towards their subordinates. Prohibited conduct includes summoning involved employees for disciplinary hearings, tightening restrictions on conduct, disseminating messages that unionization will harm those involved or that unionization is bad for the workplace or its competitiveness, that the unionization is unnecessary since the employer takes care of its employees and participating in the drafting and signing of forms revoking membership.
For further information on this topic please contact Shoshana Gavish:
Telephone: +972 3 567 0700
Email: shoshanag@s-horowitz.co.il
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