A realtor hired as a freelancer contractor sought to be recognized as an employee after a 16-month period in which he received sales commissions totaling ILS 10,000 plus VAT only.
The Court rejected the claim and held that there was no employer-employee relationship between the realtor and the brokerage agency. The question as to the existence or absence of employment relations is done by applying the "mixed test", which includes, inter alia, the test of integration on both its positive and negative sides. In the positive aspect, one examines, inter alia, the extent of the employer's control over working hours, the place of work, the division of tasks between the employees, the hierarchy between the various employees, the method of payment and more. In the negative aspect, one examines whether the person performing the work has its own business, or more precisely, whether integration into the workplace was not done through its business. Here, the engagement agreement between the realtor and the brokerage agency stated that the realtor is an independent contractor who provides his services against an invoice. The realtor did not have a stiff work pattern, did not show up for work on fixed days or hours and he rarely participated in team meetings. Also, the brokerage agency did not dictate to the realtor a course of action or an agenda and the realtor knew that his remuneration was paid as commissions only and remained silent during the entire period of his work. In addition, the realtor had his own independent business and continued to so act even after the termination of the contract with him, while the agreement also allowed him to hire his own employees for the purpose of fulfilling his work. Therefore, the realtor has not "integrated" into the workplace and there is no employer-employee relationship in a way that entitles him to the payment of wages or any employment rights.