Israeli Court Approves Class Action Against Rami Levy Over Cashier Shortages
Translated & summarized from Bizportal by baba
A class-action lawsuit has been approved against Rami Levy supermarkets in Israel for deducting cash register shortages from cashier wages. The Regional Labor Court ruled that such deductions are not legally considered debts under the Wage Protection Law. The ruling came after former cashiers sued, arguing the practice was unfair and potentially illegal. Rami Levy was ordered to pay NIS 25,000 in expenses.
The story in 6 lines · by baba
- A class-action lawsuit was approved against Rami Levy for deducting cash register shortages from cashier wages.
- The Regional Labor Court ruled these deductions are not legally defined as debts under Israeli law.
- The ruling was based on the Wage Protection Law, which has specific rules for wage deductions.
- Former cashiers initiated the suit, citing unfair practices and pressure to sign deduction forms.
- Rami Levy was ordered to pay NIS 25,000 in legal expenses.
- A new policy by Rami Levy allows deductions for shortages over NIS 10, with potential dismissal for accumulating NIS 50.
A judge at the Regional Labor Court in Jerusalem has approved a class-action lawsuit against the Rami Levy supermarket chain concerning the deduction of cash register shortages from cashiers' wages. The practice, which came to light in the media and sparked public outcry, was criticized as unfair, particularly given the low wages of cashiers and the absence of suspicion of theft.
The lawsuit was initiated by Meir Edri, who worked as a cashier in 2018 and was required to repay NIS 45.70, and Baruch Shaltiel, employed from 2012 to 2018, who had to repay NIS 200 and NIS 57.50 on separate occasions.
In 2023, following the lawsuit's filing, Rami Levy implemented a new policy. Under this policy, shortages exceeding NIS 10 per shift are deducted from wages. Accumulating NIS 50 in shortages within a month could lead to dismissal, while shortages over NIS 100 are escalated to security personnel and may also result in termination.
The central legal question revolved around the legality of these deductions under Israel's Wage Protection Law. Specifically, Section 25 of the law permits deductions for debts based on a written commitment from the employee, but limits such deductions to a quarter of the wages.
Judge Rachel Bar-Gera Hirschberg ruled in favor of the former cashiers, stating that cash register shortages do not constitute a "debt" as defined by law, which typically refers to an established financial obligation. She argued that the practice felt more like an "undertaking" within the employment contract, requiring a clarification process before it could be considered a debt. Furthermore, she contended that the "consent" obtained from cashiers to these deductions, often under duress with the threat of dismissal, did not meet the legal requirements for a valid written commitment. The court also noted that the chain holds cashiers fully responsible for shortages, even when caused by factors like inadequate training or operational pressures.
Rami Levy was ordered to pay NIS 25,000 in expenses. Public representatives Benjamin Elbaz and Bruria Maman concurred with the judge's decision. Attorneys Zvi Mandelson represented Edri and Shaltiel, while Esti Nadel and Sapir Tova represented Rami Levy.
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