Caselaw

Civil Case (Tel Aviv) 1199-11-18 Doron Zaruk v. A.R.A.B. Bonus Ltd. - part 27

July 3, 2026
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In addition, in the present case, it is clear that at the time the non-competition clause was concluded, there were very clear power differences between Mr. Zaruk and the defendants, and these can exist not only in employment relations but also in other contractual contexts.  The determinant is not found in the formal classification of the business relationship, but in the characteristics of the contractor in practice.

In any event, it is clear that the analysis that has been done so far should not be singled out for labor laws alone.  In this regard, there is harmony between labor law and general law.  The ruling of the National Labor Court imposed restrictions on the prevention of competition in the world of labor law (In the matter Check Point).  And the matter Saar impose such restrictions on general contractual relationships.  The domains project on each other.  Thus, in his article on constitutional rights and private law, the Honorable President Barak showed how the principles formulated in the matter Saar were used for the development of labor law on the subject by the labor courts (Barak, at p.  414"Q 230).

  1. I therefore reject the defendants' argument that the set of laws examined so far does not apply in our case.

It is not justified to use a "blue pencil" here to try to reduce the restrictive conditioning in order to save it

  1. When it is found that a stipulation in the agreement is invalid, since it contradicts public policy, "The question arises, if a house-The law may limit the scope of the restriction on freedom of occupation in order to meet the requirements of reasonableness and proportionality" (Interest Saar, at p.  29).  The court may change the stipulation, delimit it, reduce its size, and adapt it to the legitimate interests of the person who imposed it.  Sometimes Also Conditional provisions can be separated and classified as a partN As a null and voidThe other part of them As valid.

Is this how we should act in the case before us? My answer is no.

  1. An effort on the part of the court should be made after an effort has been shown on behalf of the imposing of the limitation. When it becomes clear that there is a legitimate interest at its base that justifies its establishment, and By him In an effort to impose reasonable and proportionate limitations, there may be room for the court to set its scope to the appropriate extent, the more they deviated from it. In this way, weight will be given Higher to the undertaking undertaken by the employee or partner, in a manner that will fulfill the purpose of the agreement between the parties, and to the appropriate extent that does not contradict public policy.

However, where a stipulation is imposed without the basis of a legitimate interest underlying it, and where it turns out that no thought was given toits formulation, and it was formulated in a sweeping and decisive manner in order to impose restrictions on competition, the court should not be expected to save.  In such cases, the king's path must pass in recognitionof the nullity of the stipulation and the loss of its binding power.  Otherwise, we will encourage those who impose restrictions to impose sweeping restrictions, thinking that on the day of the order, the court will do their job in their place.  This is what we should do.  The person who imposes sweeping and unjustified restrictions must know that he is thereby increasing the risk that his condition will be fundamentally invalidated.  Only in this way will we incentivize those with legitimate interests to devote discretion and thought when imposing restrictions on competition and the occupation of others.

106. The result is that the non-competition clause before us should be declared null and void because it contradicts public policy.

It should be emphasized that this result has good force in relation to the engagement with Mr. Zaruk, in accordance with the characteristics presented in the present proceeding.  This does not necessarily mean that other provisions, in other agreements entered into by a bonus company, are also void, insofar as they are based on a legitimate commercial interest that was developed, and which was not presented to me.

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