Labor Dispute (Tel Aviv) 28207-09-21 IT. Rehabilitation Ltd. – Avraham Matzliah

24 August 2025

1. We have before us the plaintiff's claim of A.   Rehabilitation in a Tax Appeal (hereinafter - the plaintiff or A.  T), against the defendants, two of whom Mr. Avi Matzliah (hereinafter - Avi) and Mr. Amir Koren (hereinafter - Amir) are its former employees, in the framework of which it petitioned for the following remedies: compensation for damages or transactions carried out by the defendants during the period of employment of Mr. Koren and Mr. Matzliah thereafter, in the sum of ILS 3,000,000, for the purposes of fees; compensation for damage to reputation and/or damage to autonomy in the amount of ILS 500,000; punitive damages in the amount of ILS 500,000; an order for accounts as well as a declaratory order instructing the defendants to pay the plaintiff a payment of ILS 100,000, which was paid by her to Hadassah Hospital; In addition, the plaintiff petitioned for theft of a trade secret, breach of the duty of training, fairness and good faith, denial of severance pay and deduction of Avi and Amir's last salary.  The defendants Avi and Amir filed counterclaims directed against the plaintiff and her manager, Mr. Tzafrir Zadok (hereinafter: Tsafrir), relating to their rights due to the termination of their employment, including compensation for violation of their privacy, compensation under the Prohibition of Defamation Law and non-pecuniary compensation.
2. The plaintiff also filed a claim against Sky Medical Equipment and Technologies in a tax appeal (hereinafter - Sky) which was established by Avi and Amir on July 13, 2021, as well as against Iris Marketing and Projects in a tax appeal (hereinafter - Iris Marketing), and Mr. Yaakov Mouse, a shareholder and sole director of Iris Marketing (hereinafter - Yaakov), due to a breach of Avi and Amir's employment contract.

Factual Background

3. The plaintiff is a company that was lawfully incorporated in Israel on December 31, 2000, and is engaged in the field of sales and marketing of rehabilitation and medical mobility accessories in Israel. Beginning in 2020, the plaintiff also began selling and marketing various products that medical institutions needed to cope with the COVID-19 pandemic.
4. Avi began working for the plaintiff on August 20, 2013, as a sales agent, and on December 26, 2013, he was promoted to the position of sales manager for the plaintiff. As part of his position, he was responsible for liaison with suppliers, hospitals and the plaintiff's customers.  According to the plaintiff, my father finished his work on June 29, 2021.  According to the defendants, my father finished his job on June 30, 2021, when he resigned from his job.
5. Amir began working for the plaintiff on July 15, 2018 as a sales agent. Amir ended his employment with the defendant on June 29, 2021, when he resigned from his job.
6. Iris Marketing is a company that served as the plaintiff's contact person for the purchase of products from China, mainly during the COVID-19 period. Its owner, Yaakov, has been my father's best friend for many years (paragraph 20 of the amended statement of defense, paragraph 6.2 of Yaakov's affidavit).
7. Avi's employment agreements as well as Amir's set out a series of commitments. In accordance with my father's employment agreement, he undertook as follows:

"5.5 ...  It is agreed that during the period of his/her employment with the Company, the Employee shall not engage and/or work and/or provide services of any kind whatsoever to any body and/or person and/or corporation in any other work or business outside the Company, whether paid or unpaid, as a self-employed person or as an employee, during or outside of work hours, directly or indirectly, except and if the Company has approved the employee in advance and in writing.