A new immigrant to Israel worked in a high-tech for six months full-time and five month part-time while not being paid, except for receiving clothes, travel reimbursements and other refunds, and did not receive pay slips or other terms given to employees. The employee sued not only the company but also the person who was a shareholder, director and CEO of the company. The company contended that the new immigrant offered to work free of charge and it was agreed with him to receive salary and stock options in the company only if he will invest a total of $ 300,000 in the company.
The Labor Court held that the employee carried out work for the company, received a business card, worked the company offices and in fact integrated into the company and therefore working relationship exist between the parties. The company had an obligation to pay the employee even if the employee was not aware of his rights and in any case, a minimum wage may not be contingent and thus the company was committed to pay the employee at least minimum wage. The Court ordered the company to pay the employee his full rights under the law and also held the manager personally liable because many criminal offenses relating to the employment were carried out by his decision.