25.04.2020 | The High Court of Justice ordered to cancel the contributions of infiltrating employees by virtue of the provision of the Deposit Law; the Restaurants and Bars Association is represented by Adv. Helit Simhoni, Head of the Labor Law Department and partner in our firm.
The High Court of Justice ordered to cancel the contributions of infiltrating employees by virtue of the provision of the Deposit Law.
The Restaurants and Bars Association, which also petitioned against the Deposit Law through our firm, claimed, inter alia, that employees’ share in these contributions would eventually be rolled over to employers and would make the wage of these employees (which is expensive to begin with due to shortage of employees) more expensive, thus not only the purpose of the law will not be fulfilled, it will indeed result in a harsh blow to the restaurant industry and consequently to the other employees in the industry.
This concern has become real during the Coronavirus crisis and the Restaurants and Bars Association also filed an application in the same petition several days prior to the decision in order for the High Court of Justice to order the State to release the employee’s share in the deposit for these employees (as they too are currently on unpaid leave but are not entitled to unemployment benefits.)
As aforesaid, a few days later this decision was rendered revoking the provision of the law and ordering to cancel the employee’s component in the deposit arrangement and promptly pay it back to the employees.
The Restaurants and Bars Association was represented in the petition by Adv. Helit Simhoni, partner and Head of the Labor Law Department in our firm together with Adv. Rany Schwartz of Yaron-Eldar, Paller, Schwartz & Co.
Adv. Simhoni: “The Acceptance of the petition is important news to employers, especially to employers in the restaurant industry, since the concern that this component would eventually be rolled over to them has been removed, as well as other decrees imposed on them. In addition, the High Court of Justice notes in its judgment that in this period damage to employees’ property is all the more severe. This is true also with respect to employers, and all the more forcefully employers in the restaurant industry. This industry and its workers, many of whom are infiltrators, are real victims of the Coronavirus crisis. We are happy that we were able, through the Restaurants and Bars Association, to help these employers and employees who were left without any source of income these days”.
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The translation was executed courtesy of Tomedes Translations