Fired Salesman Awarded Over Half a Million Shekels
Translated & summarized from Bizportal by baba
A Tel Aviv labor court ordered Kuli K.A. Mefanim to pay former salesman Avraham Rachmani NIS 556,111 after his dismissal. While the court deemed the termination justified, it awarded Rachmani significant compensation, including over NIS 338,000 for overtime hours. The ruling stemmed from a recorded conversation where Rachmani expressed doubts about company leadership amidst a shareholder dispute. The company must also pay NIS 40,000 in legal fees.
The story in 6 lines · by baba
- Former salesman Avraham Rachmani was awarded NIS 556,111 by a Tel Aviv labor court after his dismissal.
- Over NIS 338,000 of the award is compensation for overtime hours worked by Rachmani.
- Rachmani's dismissal was deemed justified, but the hearing process was partially invalidated.
- The case involved a recorded conversation where Rachmani expressed doubts about company leadership.
- The company must also pay Rachmani NIS 40,000 in expenses and legal fees.
- A counterclaim for defamation against Rachmani resulted in a NIS 15,000 award to the company.
A Tel Aviv labor court has ordered Kuli K.A. Mefanim, a distributor of hydraulic cranes, to pay former salesman Avraham Rachmani NIS 556,111 following his dismissal in February 2022. The court ruled that while Rachmani's termination was justified, the company must compensate him for various entitlements, including NIS 338,954 for overtime hours.
Rachmani was fired three months after a recorded conversation in November 2021 with a client, Orit from Mobility, who was disputing a payment method change. Unbeknownst to Rachmani, Orit was recording him. During the call, Rachmani expressed doubt about the company's chairman, Ali Othman, and questioned if Orit had a "case" against her.
The court found Rachmani acted against the company's interests, particularly amidst a shareholder dispute between Othman's group and Gideon Prochter's group, which included Rachmani's direct supervisor, CEO Eldad Hamisa. The company argued Rachmani incited a client against it and breached his duty of loyalty. However, the court invalidated part of Rachmani's dismissal hearing because the recordings and related details were not disclosed beforehand.
Additional compensation awarded to Rachmani includes NIS 31,524 in severance pay differentials, NIS 36,772 for advance notice, NIS 22,180 for vacation pay, and NIS 28,980 for a study fund. The court also awarded NIS 79,201 in commission differentials for deals closed before his departure, noting the company's refusal to provide invoices as commercial secrets was held against it. Rachmani also received NIS 3,500 for work hours listed on his pay stubs that did not reflect additional compensation.
Furthermore, the company was ordered to pay Rachmani NIS 40,000 in expenses and legal fees, with interest accruing from June 2022. The court also awarded Rachmani NIS 15,000 in damages for defamation in a counterclaim filed by the company, which alleged his remarks about Othman and the payment decision could harm the company's reputation. This amount will be deducted from the total sum owed to Rachmani.
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