Last update - 00:00 28/01/2008
In unprecedented ruling, court jails employer for underpaying staff
By Ruth Sinai, Haaretz Correspondent
The Tel Aviv regional labor court has sentenced the owner of a security company to three months in jail for paying his workers less than the minimum wage. This is the first time any court in the country has imposed such punishment for violation of the minimum wage law.
Eran Yaakobi, owner and manager of Hadar Bitachon Veshmira, also received a one-year suspended sentence. In addition, he was fined NIS 50,000 personally, and his company was fined NIS 100,000.
"It is hoped that such sanctions will deter employers who withhold from their workers the basic right to subsistence by exploiting them," said Michael Atlan, the legal advisor of the Industry, Trade and Labor Ministry.
However, the jail time - which was handed down last week as part of a plea deal - will likely be commuted to community service.
The violations were brought to light when several employees filed complaints with the ministry, which investigated the claims and filed an indictment.
The minimum wage law allows the courts to put violators in jail for up to a year and to fine them a maximum of NIS 202,000 per monthly violation.
In this case, there were nine complainants and the violations extended over 14 months, meaning that Yaakobi could have been fined up to NIS 8.7 million.
In deciding not to issue the maximum possible fine, Judge Orly Sela took into consideration the financial difficulties faced by Yaakobi and his company, as well as Yaakobi's personal and health problems, and his admission of guilt and expression of contrition. She acceded to his request to pay the fine in 40 installments, but ruled that he would sit for three days in jail for every month that he doesn't pay.
Sela also ruled that Yaakobi will be sent to jail for a year if he is caught violating the minimum wage law again during the next three years.