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 Labor Law Client Update 

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March 16 2017

NIS 25,000 Compensation Awarded for Employer's Breach of Duty to Investigate Rumors of Sexual Harassment

Recently a question came before the labor court on the interpretation of Section 6(i) of the Prevention of Sexual Harassment (Employer's Obligations) Regulations, 5758-1998, which provides as follows:

'If an incident of sexual harassment or harassment within the employment relationship is known the employer, and no complaint is filed or the complainant withdrew his complaint, the incident will be handed over for checking by the person responsible; where the said incident is handed over for checking by the person responsible or the said incident is known to the person responsible, the person responsible shall conduct, insofar as it is possible, a check into the incident according to this Regulation, mutatis mutandis, and if the complainant withdrew his complaint the reason for the withdrawal of the complaint shall also be checked.'

The question was whether this Regulation should be interpreted so as to impose an obligation on the employer to conduct an investigation into rumors of sexual harassment, which had been circulating about one of its employees.

It should be mentioned that, by contrast with the majority of other incidents which come before the labor courts with claims of compensation for breach of the employer's duties under the Prevention of Sexual Harassment Law, in this instance the claim was filed by an employee in respect of whom allegations had been raised that he was the offender rather than by an employee who had been harassed.

The plaintiff was employed as an inspector of bus services with the company for about one and a half years until he was dismissed over disputes with his manager and issues concerning his conduct towards employees and customers. After he was fired, he learnt that someone who worked for the company had spread rumors about him concerning sexual harassment of two female employees at the workplace.  In light of this, the former employee (plaintiff) sued the company for monetary compensation.  The plaintiff claimed that the fact that his manager did not transfer the rumors of sexual harassment to the company's supervisor in charge of sexual harassment constituted a breach of the enhanced duty of trust applicable in the employer-employee relationship and so because of that he had not been successful in obtaining new employment.

The labor court decided that in any case where the employer is made aware of an incident of sexual harassment it must transfer it for checking by the person responsible for investigating complaints of sexual harassment in the organization.  The judge added that the manager is not meant to, and should not, exercise his discretion in such an incident to assess whether this information is founded or not but should transfer it over for checking.  It was also decided that a manager who hears rumors that one of his employees sexually harassed an employee, must report this immediately to the supervisor on sexual harassment and this is the case even if no complaint was filed with him or with anyone else by the party harassed.

The court mentioned in its judgment that the obligations imposed on every manager to bring to the knowledge of the supervisor of sexual harassment all information coming to his attention – whether by complaint or by information which is not at the level of a complaint – are aimed to protect not only women or men who are suspected of having been victims of sexual harassment, but also men whose good name is injured as a result of any rumor alleging sexual harassment. Accordingly, if it is decided that the employer had breached this obligation towards its employees – whether female or male – then it is reasonable to oblige the employer to compensate the employee [male or female] who has been so injured.

With respect to the case itself, the court found that indeed a rumor had been circulating around the company employees according to which the plaintiff was a sexual harasser and this rumor had reached the plaintiff's manager.  However, notwithstanding that no check had been carried out into the matter.  The court also found that the rumor had been known to the management for some one year and rejected the legal argument of the company that since no official complaint had been filed it was under no duty to look into rumors.  At the end of the day, the court awarded the plaintiff compensation of NIS 25,000 for mental anguish.

Reference: SaSh (TA) 42650-06-14 John Doe v Taavura Holdings Ltd (judgment of His Honor Dori Spivak, published in Nevo 12.2.2017); Prevention of Sexual Harassment (Employer's Obligations) Regulations, 5758-1998

 
Disclaimer: This Newsletter is intended only to provide general updates to clients and for no other purpose. Nothing in this Newsletter constitutes any opinion or advice on the subject matter dealt with therein. For any advice or opinion, clients are advised to approach the relevant lawyer at Naschitz, Brandes Amir & Co.

Contact Us:

Michal Zohar
Adv. Michal Zohar
tel: 972-3-6236070
email: 
mzohar@nblaw.com
Yraon Rossman
Adv. Yaron Rossman
tel: 972-3-6235044
email: yrossman@nblaw.com
Edited & Written by Dr. Sharon Yadin, Adv.
English version by Adv. Helen Raziel