In one of the cases in which we have represented one of our clients, we have been asked if a company which is purchasing services from a third party may be considered as an employer? Is there a possibility that such a company will be obliged to cover the salaries and the social payments for the employees who are not engaged by it?
Adv. Yair David, Adv. Hilli Levitt-Meir and Adv. Efrat Greenberg-Josef, represented in courts its client-MINRAV GROUP -in a suit placed alleging that MINRAV should have paid the salaries and the social payments for the employees engaged by its subcontractor.
The court ruling given by the Regional Labor Court located in Beer Sheva, stated that MINRAV GROUP should pay a sum of INS 500k for the salaries and the social payments for the employees engaged by its subcontractor.
Our team appealed against this court ruling to the Supreme Labor Court of Law. We are privileged to inform you that the Supreme Labor Court of Law has cancelled the court ruling of the Regional Labor Court, has accepted our appeal and has decided that due to the specific circumstances claimed by us it is not possible to consider our client as the employer of the employees engaged by the subcontractor and our client is not obliged to cover the salaries and the social payments.
This court ruling of the Supreme Labor Court of Law should be considered as an important precedent which enables prime contractors to purchase services by outsourcing without being obliged to cover the commitments of the subcontractors.