Shlomo Sixt Ordered to Pay $4.7 Million to Employees for Pension and Leave Violations

Israel's Labor Court has ordered car rental company Shlomo Sixt to pay approximately 4.7 million shekels (about $1.3 million USD) to its employees for systematically violating their pension and vacation rights for over a decade. The court ruled that the company delayed pension payments for new hires, contrary to the collective agreement, and failed to include sales commissions in pension calculations. Additionally, employees were denied annual "choice day" leave as stipulated by the industry's collective agreement.

Shlomo Sixt argued that sales commissions should not be considered "wages" for pension purposes and that the collective agreement was no longer valid. However, the court rejected these claims, citing evidence where even minor commissions were counted towards pension contributions, making the company's argument about negligible amounts untenable. The court also dismissed the company's assertion that retroactive payments would jeopardize its financial stability, stating these claims were unsubstantiated.

Examples presented in court included a driver who claimed his pension rights were violated from his first month and a former employee in the business department whose pension was calculated solely on base salary, despite commissions sometimes exceeding her base pay.

The court's initial ruling estimates the total payout at 4.7 million shekels. A court-appointed expert will determine the final amount for each employee, with eligibility potentially extending to July 2024.

Shlomo Sixt has stated that it is reviewing the ruling and considering an appeal to the National Labor Court.