Company Fined Over Half a Million Shekels for Withholding Reservist's Pay
Translated & summarized from Mako by baba
Technoso Control Systems must pay over 500,000 shekels to former CTO Erez Cohen for withholding his salary for five months during reserve duty. The Tel Aviv Regional Labor Court rejected the company's defense of financial difficulties and delays from the National Insurance Institute. Cohen's resignation was deemed justified due to non-payment, and the court ordered substantial back pay, severance, and other compensation. The company's owner was not held personally liable.
The story in 5 lines · by baba
- Technoso Control Systems ordered to pay over 500,000 shekels to former employee Erez Cohen.
- Cohen's salary was withheld for five months during his reserve duty service.
- The company's defense citing financial issues and Bituah Leumi delays was rejected.
- The court ruled Cohen's resignation due to non-payment was justified.
- The ruling includes back wages, severance, vacation pay, and emotional distress compensation.
Technoso Control Systems has been ordered to pay over 500,000 shekels to its former Chief Technology Officer, Erez Cohen, who did not receive his salary for five months while serving in the reserves. The Tel Aviv Regional Labor Court ruled that the company's claim of inability to pay due to delays in National Insurance Institute (Bituah Leumi) reimbursements was not a valid excuse, especially since payments were withheld even when the company did receive reserve duty compensation.
Cohen was employed by Technoso, which specializes in smart parking management systems and is controlled by Meir Kochubeyevsky, from June 2023 to August 2025. He was called up for reserve duty at the start of the war and served 874 days by the time he filed his lawsuit in December. While Technoso paid Cohen his full salary between October 2023 and April 2024, receiving lower reserve pay and additional reimbursements from Bituah Leumi, it stopped all salary payments from February to June 2025, despite still receiving reserve compensation.
Cohen resigned in August 2024, considering himself dismissed due to the non-payment of his salary. Judge Kamel Abu-Kaaoud noted Cohen's difficult circumstances, including family displacement, alongside the salary dispute. The court rejected Technoso's argument that it was entitled to offset payments because Cohen had been overpaid in earlier months, stating there was no agreement for such deductions and that salary changes during that period had already settled financial accounts.
The court found Cohen's resignation to be justified due to the non-payment of his salary despite repeated requests. Technoso was ordered to pay 180,000 shekels in back wages, 60,000 shekels for pension contributions, 85,000 shekels in severance pay, 140,000 shekels for vacation pay, 15,000 shekels for failure to provide payslips, 25,000 shekels for emotional distress, and other adjustments, along with 38,000 shekels in legal expenses. The judge denied Cohen's request to hold Kochubeyevsky personally liable for the debt.
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