Can an Israeli employer make an employee pay for damage they caused at work?

The Wage Protection Law treats wages as protected. Section 25 permits deductions required by law, such as income tax and National Insurance, and deductions the employee approved in writing for defined purposes, such as pension contributions or repayment of a loan or salary advance. A charge for damage does not fit those categories, and Labor Courts have declined to enforce broad clauses in which employees agreed in advance to cover any loss they might cause. An unlawful deduction is treated as unpaid wages, which can expose the employer to wage-delay compensation under Section 17. Toward outsiders, the employer also remains liable for an employee's acts in the course of work under Section 13 of the Torts Ordinance [New Version].

Where the employer believes the damage was deliberate or reckless, the proper route is a claim or counterclaim in the Labor Court, where the employer must prove both the conduct and the loss. Company cars are the most common flashpoint. Many car policies ask the employee to pay the insurance excess after an accident, and courts examine whether the clause was clearly agreed, whether the amount is reasonable, and whether the employee was actually at fault. An employee asked to sign a damage-payment form after an incident is under no legal duty to sign it. Foreign workers, whose pay often carries deductions for housing or other costs, have particular reason to check each payslip. See the guide on salary deductions in Israel for the permitted items.

From the full guide: Salary Deductions in Israel: What Your Employer Can and Cannot Legally Take

← Browse all Q&A