Rami Levy Supermarket Chain Faces Class Action Over Cashier Shortages

By נינה פוקס

Translated & summarized from Ynet by baba

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An Israeli labor court approved a class-action lawsuit against Rami Levy supermarkets for allegedly deducting cashier shortages from employee wages. The court ruled against the chain's practice, stating it constituted "absolute responsibility" and violated salary protection laws. The ruling orders the chain to pay legal fees and costs, while a related "Cashiers Law" remains stalled in the Knesset.

The story in 5 lines · by baba

An Israeli labor court approved a class-action lawsuit against Rami Levy supermarkets for deducting cashier shortages from wages.
The court ruled Rami Levy's practice created "absolute responsibility" for cashiers, violating salary protection laws.
The chain was ordered to pay NIS 25,000 in legal fees and NIS 4,000 in costs to the original plaintiffs.
Rami Levy previously stated that stopping deductions would lead to bankruptcy.
A proposed "Cashiers Law" to protect employees from illegal deductions is stalled in the Knesset.

Rami Levy Supermarket Chain Faces Class Action Over Cashier Shortages — Editorial illustration generated by baba News, not a photograph of the event.

An Israeli labor court has approved a class-action lawsuit against the Rami Levy supermarket chain, concerning allegations that the company illegally deducted money from cashiers' salaries or demanded they cover cash register shortages with their own funds. The lawsuit, initially filed by two former cashiers, Meir Edri and Baruch Shaltiel, seeks the return of all sums allegedly collected or deducted from employees for these shortages.

The court rejected the chain's argument that deductions were legal, based on employee consent and clear procedures. The judges ruled that the section of the Salary Protection Law cited by the company was intended to protect minimum wages, not to allow employers to shift business risks onto cashiers. The court found that Rami Levy implemented a system of "absolute responsibility," where cashiers were held liable for shortages even without proof of fault or thorough investigation into causes like technical errors or inadequate training.

Witnesses testified to a high-pressure environment at the end of shifts, where employees felt compelled to sign deduction forms under threat of disciplinary hearings or termination. The court emphasized that salary deductions for misconduct must follow legal procedures, not an automatic deduction from net pay.

In addition to approving the class action, the court ordered Rami Levy to pay NIS 25,000 in legal fees to the plaintiffs' attorney and NIS 4,000 in court costs to each of the two original plaintiffs. The issue of collecting shortages from cashiers was first exposed by an Ynet investigation, which also covered other supermarket chains. Rami Levy himself previously stated that ceasing these deductions would lead to bankruptcy.

Following the Ynet report, the Ministry of Labor launched an investigation that led to convictions and fines for the Victory supermarket chain and its owner, Avraham Ravid, for severe labor law violations, including illegal deductions and wage theft. A proposed "Cashiers Law" aimed at protecting employees from illegal salary deductions has passed its first reading in the Knesset but has been stalled since February 2025.