Wage deductions under the component of a "deposit" were made from the salary of a brazilian football player who played for the Maccabi Haifa football club during his final months of employment. The said deductions were intended to secure the payment of the player's future expenses, such as debts for traffic fines, housing bills, and personal expenses, which might be discovered after the termination of his employment and his departure from the country.
The Labor Court held that the deduction made under the deposit component was unlawfully made. Deducting monetary amounts as a general deposit to secure the coverage of future expenses, which have not yet been incurred or proven, is not included in the closed list of permitted deductions from an employee's salary and is therefore prohibited by law. Here, a total of ILS 30,000 was deducted from the player's salary under the deposit component to secure the payment of future expenses, inter alia, without the deduction being explicitly anchored in the employment contract. Furthermore, also on the merits, the employer did not incur actual expenses justifying the expropriation of the funds and the failure to repay them to the player. Consequently, the club shall compensate the player.