We are pleased to update you on another significant achievement of our firm, as part of an appeal process that took place at the Regional Labor Court in Tel Aviv.
A company, which is a client of our firm, approached us after a claim for maternity allowance for an employee of the company, who was married to the owner of the company, was rejected by the National Insurance Institute. The rejection was based on the claim that an employer-employee relationship did not exist between the employee and the company. The National Insurance Institute's position was, allegedly, supported by the findings of an investigation conducted by its investigator, which purportedly concluded that the employee 'merely assisted' her husband, the owner of the company, from time to time, in a manner that did not establish an employer-employee relationship.
Even at the initial stage of examining the case, it became clear that there was a broad factual basis indicating the existence of an actual employment relationship – despite the position of the National Insurance Institute.
In light of the foregoing, our firm filed a detailed appeal with the Regional Labor Court in Tel Aviv, in which we presented a full and accurate picture of the relationship between the parties and argued that the evidence and affidavits detailed in the appeal establish the high threshold required to prove the existence of an employer-employee relationship between the employee and the company owned by her husband.
At the conclusion of the evidentiary hearing held in court, and in light of the evidence presented on our behalf and the clear testimony of our witnesses, the court recommended that the National Insurance Institute retract its original position and recognize that an employer-employee relationship existed between the employee and the company.
In light of the court's clear position, as stated, the National Insurance Institute was compelled to announce, through its legal representative, that it completely retracts its position and recognizes the existence of an employment relationship between the employee and the company.
The court gave this notice the force of a judgment and also ordered the National Insurance Institute to pay court costs in the amount of NIS 5,000.