An employee filed a claim against the employer as well as personal claim against its shareholders alleging that they tend to open companies and mix their private assets with company assets while hiding under the organizational-legal structure they created and using it to deprive the employee as a creditor of the employer.
The Labor Court held that there is no justified cause for piercing the corporate veil. The employee was employed continuously only by the employer, so that it was not transferred as from hand to hand and from employer to employer. The correct, and even accepted, business behavior of the employer is the establishment of a separate corporate vehicle for each real estate project in which it was involved. Because it was not proven that the management of employer was done while taking unreasonable risk of its ability to repay its debts or that all its conduct was aimed at creditors' fraud, there was no place to file a personal claim.