Labor Dispute (Tel Aviv) 51261-02-23 Avner Dayanim – Champions Trading Group Ltd.

Judgment

Did a sales agent work for another employer in parallel with his work? And if so, is there room to deny the severance pay to which he is entitled as a result of his dismissal - this is one of the issues before us. 

This is a judgment in a lawsuit and a counterclaim filed between the parties.  The plaintiff, Mr. Avner Dayanim (hereinafter: the plaintiff), was employed by the defendant, Champions Trading Group in a Tax Appeal (hereinafter: the defendant or the counter-plaintiff), as a sales agent in the field of clothing and sports equipment.  The plaintiff was fired from his job, and subsequently filed a monetary claim against the defendant for various rights deriving from the employment relationship and their termination.  The defendant, for its part, filed a counterclaim against the plaintiff and against J&K Master Brands (hereinafter: defendant 2 or J&K) on the grounds of theft of trade secrets, breach of trust and damages caused to it as a result of the plaintiff's actions.

The Factual Basis

1. The plaintiff contacted the defendant's manager, Eitan Crankors, in May 2010 and began working for the defendant on September 1, 2010. The plaintiff came to the defendant with experience in selling costumes and sports equipment.  The defendant was established in June 2006, functioned as a licensed dealer under the name of A.  Clothing, and later incorporated under the name Karencors Clothing Ltd., and changed its name to Champions Trading Group in a tax appeal on October 24, 2022.
2. The plaintiff was employed as a salesman in the field of clothing and sports equipment, and was mainly engaged in the marketing of soccer suits and similar products. The plaintiff's salary was increased several times during his years of employment.  The plaintiff received a private car and a mobile phone on behalf of the worker.
3. The plaintiff's mobile phone number, 050-8885222, was transferred to the defendant's ownership.
4. In March 2022, the plaintiff collaborated with J&K on a toy show.
5. On September 28, 2022, the plaintiff was summoned to a hearing. On October 11, 2022, the plaintiff was served with a dismissal letter.  The plaintiff returned the cell phone that was in his possession, erased and returned to the manufacturer's settings.

The Ottoman Settlement [Old Version] 1916

6. 12-34-56-78 Chekhov v. State of Israel, P.D.  51 (2)Following a request for a temporary injunction (Labor Dispute Case 37149-02-23), the parties reached an agreement that was validated by a judgment by the Honorable Judge Tamar Etzion Peltz on February 26, 2023.  As part of this agreement, the plaintiff refrained from selling "sports suits that were not sold before January 2023" to the defined "core customers", from the date of the agreement until May 10, 2023.  It was agreed that this agreement does not prejudice the parties' claims in the framework of the mutual financial claims.  The defendant's claim (the applicant in the injunction) will be filed as a counterclaim in the parallel proceeding.

The parties' arguments