Israeli Court Approves Class-Action Lawsuit Against Rami Levy Retail Chain

An Israeli labor court has authorized a class-action lawsuit against the Rami Levy retail chain, alleging that shortages at cash registers were deducted from employees' wages or paid out in cash. The lawsuit encompasses cashiers who worked for the chain over the past seven years and claim to have been harmed by this practice. This ruling allows the case to proceed as a class action, though it is not a final judgment on the merits of the claim itself. The chain has been ordered to pay NIS 33,000 in legal fees and expenses for this preliminary stage.

Rami Levy has denied the allegations, stating that deductions were only made after an investigation and with explicit, written consent from the employee. The company further claims that if employees refused to sign, no deduction was made, and the branch absorbed the loss. The chain argues that the policy aims to instill responsibility among cashiers handling large sums of money.

This issue is not unique to Rami Levy, as similar lawsuits have been approved against other retail chains likeעד ופרשמרקט and ויקטורי in recent years. The initial filing against Rami Levy contended that the chain exploited power imbalances with low-wage workers and that deducting shortages from wages violates the Salary Protection Law.

Legal experts suggest that for an employer to deduct from an employee's salary, the debt must be fixed, proven, and undisputed. Consent obtained under pressure or in advance is not considered genuine agreement. The next steps involve notifying potential class members, who will have a period to opt out. The case will then proceed like a standard civil suit, potentially leading to a settlement or a full trial, which could take several years. Rami Levy may appeal the decision, potentially delaying proceedings further.