Tech Company Fined Over Half a Million Shekels for Withholding Reservist's Pay

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 invalid, especially since payments were withheld even when the company did receive funds.

Cohen, who worked for the smart parking systems company from June 2023 to August 2025, was called up for reserve duty following the outbreak of the war. He served 874 days by the time he filed his lawsuit in December. While Technoso paid his full salary between October 2023 and April 2024, receiving lower reserve duty stipends and additional reimbursements from Bituah Leumi, it stopped all payments from February to June 2025.

Judge Kamel Abu-Kaoud noted Cohen's difficult personal circumstances, including his family's evacuation, alongside his financial hardship. The court rejected the company'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 had already settled accounts. The judge also ruled that Cohen's resignation in August was effectively a dismissal due to non-payment of salary, despite his repeated attempts to resolve the issue.

The total sum awarded to Cohen includes 180,000 shekels in back salary, 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, and 25,000 shekels for emotional distress, along with other adjustments. Technoso was also ordered to pay 38,000 shekels in legal costs. The court denied Cohen's request to hold the company's owner, Meir Kochubeyevsky, personally liable for the debt.