Former Caregiver to Billionaire Teddy Sagi Awarded Nearly 160,000 Shekels in Settlement
The Tel Aviv Regional Labor Court recently approved a settlement agreement between a former caregiver to billionaire businessman Teddy Sagi's children and Zelia Services Limited, the company alleged to employ staff at the Sagi family residences. Under the settlement, Zelia Services will pay the caregiver 140,000 shekels in compensation, 60,000 shekels for legal fees, and 20,000 shekels for court expenses, totaling 220,000 shekels.
The caregiver, represented by attorney Oren Tal, claimed she was employed by Zelia Services for several years as a nanny and cleaner, working at the Sagi family homes in Cyprus and Dubai. She alleged violations of labor laws, including working 12-hour days and night shifts without proper overtime compensation. The lawsuit, filed in 2024, stated that the Sagi family employed numerous staff, including 12 caregivers, two private chefs, and six cleaners, and that the plaintiff was required to supervise the children continuously from morning until night, including during their sleep.
Zelia Services denied all allegations, asserting the caregiver was paid well above minimum wage standards in Cyprus, Dubai, or Israel, received generous housing allowances, full flight expense coverage, and was compensated fully for all hours worked. The company argued that labor laws on working hours did not apply due to the unique trust-based employment relationship and that the caregiver worked shifts of up to nine hours. The termination of employment was attributed to the caregiver's refusal to switch to full-time work.
The defense also stated that multiple caregivers shared duties such as escorting children to and from school and night shifts, with only one caregiver working at a time during these periods. Affidavits from other caregivers described excellent working conditions and warm treatment by the family, particularly by Teddy Sagi's former partner, Yael Nazari Sagi, who was said to care for the staff like family.
The case was closed last month with a settlement approved by Deputy President Judge Yafit Mizrahi-Levy, without admission of guilt by either party. The lawsuit was not filed against Teddy Sagi or Yael Nazari Sagi personally; the compensation will be paid by Zelia Services. Attorney Eran Gottfried, representing Zelia Services, stated that the caregiver's inflated claims were unproven, that she attempted to mislead the court by withholding documents, and that the settlement was a pragmatic decision given the high costs of litigation.
