Labor Case (LC) 42787-07-15 Miriam Hershkovitz v. Ovadia Pik Krichli & Co., Certified Public Accountants (Partnership)

This case concerned the claim of Ms. Miriam Hershkovitz, whom we represented, against the accounting partnership Ovadia Pik Krichli & Co. The claim was filed for various rights arising from the plaintiff's period of employment with the defendant and its termination, centering on the question of continuity of employment and changes to her terms of employment.

The plaintiff worked as an office secretary. She was initially employed by AST U.S. TAX & MIDDLE G.M.B.H Financial Services. The defendant subsequently established a joint business venture with that company, and the plaintiff continued working under the venture. When the venture was dissolved, the plaintiff was taken on directly by the defendant. The plaintiff argued that the defendant retroactively changed her terms of employment without prior notice, and that these changes included discontinuing contributions to a study fund, cancelling accrued vacation days, and discontinuing funding of private medical insurance.

The defendant, in response, argued that there was no continuity of employment, and that the plaintiff began working for it only when the venture was dissolved. It further argued that the plaintiff had signed documents evidencing the severance of the employer-employee relationship with the previous company.

The labor court accepted the plaintiff's claim of continuity of employment, ruling that the defendant could not disclaim its obligation to make payments for the earlier period. This finding was based on evidence of joint management of the venture, the defendant's involvement in decisions concerning the plaintiff's employment terms, the absence of any substantive change in her role or workplace, and the fact that the documents presented did not prove a "severing event" that would release the defendant from its obligation. The court ruled that the defendant had acted in bad faith by failing to notify the plaintiff in real time of the change in her employment terms, and that the plaintiff had relied in good faith on the representation created by her payslips.

The claim was accepted in part, and the defendant was ordered to make numerous payments, including contributions to a study fund, medical insurance, redemption of unused vacation, sick pay, recovery pay, social contributions, compensation for failure to provide notice to employee, and compensation for defective payslips. In addition, the defendant was ordered to pay severance for the plaintiff's entire period of employment, offset by amounts accrued in insurance policies. The court rejected the plaintiff's claim for compensation for unlawful dismissal, ruling that she had been given a full opportunity to raise her arguments at the hearings held.

This proceeding demonstrates the importance of professional and strategic legal representation in labor law cases, particularly in complex matters involving a chain of employers and changes in employment terms. We represented the plaintiff and led a well-managed proceeding focused on proving continuity of employment and the defendant's breaches, thereby securing the acceptance of most of the claim's components. In-depth knowledge of labor law, together with the ability to analyze and persuasively present evidence, led to a successful legal outcome for the employee.

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