The Nof HaGalil-Nazareth Regional Labor Court recently closed a bitter dispute between a company and its safety officer by sharply reducing the money at stake. The employer had sued him for 593,890 shekels, accusing him of industrial espionage, working for a rival, submitting fake sick notes, visiting clients while supposedly on sick leave, passing documents and profitable jobs to the competitor, inflating work hours through an app, and defaming the company and its managers. The company said those actions caused client losses, damaged its reputation, and created major financial harm.
The employee, represented by attorney Assaf Kadush, denied all the allegations and filed a counterclaim for 61,160 shekels. He said he had worked for the company for less than three years, was dedicated and high-performing, and that the employer had violated labor law by failing to hand over his employment agreement on time, withholding monthly payslips and attendance reports despite repeated requests, making unlawful deductions from his salary, and not paying full recuperation pay. He also said he complained about delayed wages, after which the company summoned him to a hearing with fabricated claims, took away his work car before the hearing, and then fired him immediately by WhatsApp without notice or severance.
With both sides’ consent, the court decided the case under Section 79A, which allows a judgment without written reasons. In the end, it rejected the employer’s huge claim in practice and ruled that the worker must pay only 11,000 shekels, while the company must pay him 28,500 shekels, leaving a net balance of about 18,000 shekels in his favor. The employer tried to appeal, but that effort was rejected, ending the case with the company’s claim largely defeated.
Kadush said the ruling sends a message about protecting freedom of occupation and warns employers against using non-compete clauses as threats. He argued that such clauses are usually void unless the employer proves a legitimate interest, such as trade secrets, special training funded by the employer, or specific compensation for restricting work.
