Legal Updates

A company is responsible for preventing sexual harassment also by a shareholder of a related company

September 16, 2018

An employee was sexually harassed by a shareholder in a subsidiary of the company in which she was employed. The company miserably investigated the employee's complaint and diminished her status in the company until her resignation.

The Labor Court held in favor of the employee ILS 65,000. The Prevention of Sexual Harassment Law states that it is the employer's responsibility to take reasonable measures to prevent sexual or other harassment in the framework of the labor relations and therefore, in general, the responsibility exists only when the harasser is an employee of the company or by a supervisor on behalf of the company, even if it is not an employee of the company.

While the harassment was in the framework of labor relations, at the time of employment and by a person who is a partner to the company's business and in a close relationship with the company and its owner, the harasser may be seen as a supervisor who is not an employee of the company and therefore the company has an obligation to prevent sexual harassment by such person.