Israeli Court Rules Ex-Husband Must Pay Ex-Wife 425,000 Shekels for 12 Years of Work in Family Business
The Tel Aviv Regional Labor Court ruled mostly in favor of a woman who sued her ex-husband, determining that she was an employee in his renovation business for about 12 years, contrary to his claim that her involvement was merely family help. The court ordered the ex-husband to pay her approximately 400,000 shekels in labor rights, including severance pay, wages, and social benefits, plus 25,000 shekels for legal fees.
The woman testified that she left her previous job in 2008 to join her husband's business as a secretary and financial manager. She worked continuously until placed on unpaid leave during the COVID-19 pandemic and did not return due to their marital separation. She claimed the husband recognized her as an employee, paid her salary with pay slips, and reported her to the National Insurance Institute but failed to pay full social benefits. She argued that the deteriorating relationship forced her resignation, entitling her to severance pay.
The husband denied any employment relationship, asserting she helped out of family interest, managed the business independently, and set her own salary and work conditions. The court rejected this, citing evidence such as her leaving a formal job to work in the business, continuous employment, essential role, salary payments, and social security reporting. It also noted that family ties or involvement in management do not negate an employment relationship.
The court recognized her resignation as a constructive dismissal due to escalating conflict, a restraining order, and loss of trust, making continued work unreasonable. However, it denied her claims for delayed severance pay and some pension-related compensation. Lawyer Liat Feigel, specializing in family and divorce law, emphasized the ruling's clear message: labor laws apply regardless of family relations, focusing on actual work performed and business reliance rather than personal ties.
Feigel advised family businesses to maintain clear employment documentation, proper payroll, and legal compliance to avoid disputes. She also warned employees in family businesses to ensure their work is documented and defined, as courts prioritize factual employment over familial relationships when conflicts arise.
