Afik News 246 20.12.2017

Afik News 246 20.12.2017


Legislative Updates

November 23, 2017

A liquidator wage shall not be higher than that prescribed in the regulations, except in exceptional cases

An escrow agent submitted a motion to the Court to approve the liquidator's wage at a rate higher than that set forth in the regulations, retroactive, after doing their work. The Court held that although the good and complex work, the rule is that the wage of office holders will be terminated in accordance with the regulations. Furthermore, wage regulations should not be bypassed by other ...

December 10, 2017

An international company marketing in Israel may be sued in Israel even if there is a foreign jurisdiction clause

A motion for approval of a class action was filed in Tel Aviv against a website advertising hotel around the world on the basis that it presented misleading data about the rating of a 5-star Israeli hotel in violation of Israeli Law. The website contended that under its terms of use there is an exclusive jurisdiction clause in the Netherlands Court and therefore Israeli Law does not apply, and the...

November 6, 2017

A precondition for restricting an employee’s occupation is proof of receipt of adequate compensation for the non-competition obligation

A company employed an operations manager who, within the framework of his employment agreement, signed a non-competition obligation. The agreement stated that when determining the salary, such obligation was considered, and the employee was also compensated for his non-compete obligation. The employee resigned, and the company filed a claim for breach of the non-competition obligation...

October 23, 2017

An agreement defining relations between parties will prevail over a later agreement dealing with a specific matter

An Israeli company executed an exclusive distribution agreement of products of an Irish company in Israel, which agreement included an exclusive Israeli arbitration clause.  About two months later the two companies (both as one side) contracted a third party for distribution of a specific product with an arbitration clause in London, England.  About six years later the Israeli company filed a ...

November 16, 2017

Lessor of a property which construction is unfinished need truly report the lessee the forecast of completion of construction

A lessee in a commercial center terminated the lease agreement after the lessor was late to hand over possession of the rented property in lack of receipt of “Form 4” (occupancy approval). The lessor claimed that the delay in handing over the rented property was out of its control...

November 7, 2017

Legal Updates: Minimum wage increased to ILS 5,300 as of December 2017

The Knesset approved an amendment to the Minimum Wage Law that commencing December 2017, the minimum wage will increase from ILS 5,000 per month to ILS 5,300. The hourly minimum wage is increased from ILS 26.9 to ILS 28.5. The daily minimum wage is increased from ILS 200 to ILS 212 for a 6 days’ work week, and from ILS 231 to ILS 245 for a 5 days’ work week. The wage increase will take place as of...