Class Action Lawsuit Approved Against Rami Levy Supermarkets Over Wage Deductions

An Israeli labor court has approved a class action lawsuit against the Rami Levy supermarket chain, alleging that the company systematically deducts cash register shortages from employees' wages. The lawsuit, filed on behalf of cashiers who worked for the chain over the past seven years, claims that employees earning minimum wage had money taken from their paychecks to cover discrepancies in the cash registers, or were forced to make up the difference in cash at the end of their shifts.

The plaintiffs argue that this practice is illegal, as shortfalls discovered during regular work are not considered a "debt" under the Wage Protection Law. They contend that employees are not liable for damages incurred during normal work unless it involves gross negligence or malicious intent. The lawsuit further alleges that Rami Levy imposes a form of strict liability, effectively turning employees' wages into an "insurance policy" for the company's losses. The plaintiffs also claim that employees were pressured into signing deduction forms under duress, with threats of not being allowed to leave work until they complied.

Rami Levy has denied these allegations, asserting that its procedures are orderly and comply with the Wage Protection Law, with individual written consent obtained for each deduction. The company argues that these are individual disputes not suitable for a class action. Rami Levy stated that the deduction policy aims to instill good work habits and responsibility, not to recoup losses. They explained that a thorough investigation, including reviewing security footage for significant shortages over 100 shekels, is conducted before any deduction. The company also noted that in about 30% of shortage cases, employees refuse to sign the deduction form, and in such instances, no deduction is made, with the branch absorbing the loss.

Judge Rachel Berg Hershberg ruled that Rami Levy must pay NIS 25,000 in legal fees to the plaintiffs' counsel and NIS 4,000 in expenses to each of the two cashiers who initiated the lawsuit. These payments are due within 30 days, with interest to be applied if delayed.