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Yesterday, a labor court ruled for the first time that, under particular circumstances, employees who have not been vaccinated or do not present a negative coronavirus test may be denied entry to the workplace.
An Israeli court recently handed down a precedent-setting ruling in a case we litigated and won. This ruling marks a game changer in terms of the costs awarded in proceedings in Israel. In its ruling, the court granted our client an award of actual costs (i.e., the actual sums the client expended to litigate the proceeding).
This past year has been nothing short of a rollercoaster ride for employers in Israel, in terms of both their business activities and their role as employers. Now, when we can perhaps see a glimmer of light at the end of the tunnel in the form of Israel’s vaccination campaign, quite a few questions arise.
When competing entities join forces to submit a tender offer, it reduces the overall number of entities competing for a tender. Reducing the number of competing entities may increase the market power of those participating entities against the tender holder and enable them to make less attractive offers.
The Tel Aviv District Court (Economic Department) has restored certainty to directors in relation to the profit test for dividend distributions. The court ruled that the profit test is a retroactive technical test, unless the directors are aware of a major event that could materially change the company’s accounting position.
Categories: Capital Markets
The Israel Securities Authority recently established guidelines on when a cryptographic currency (token) is considered a security. The ISA determined that Kirobo tokens meet the definition of a security. This is primarily because the The Israel Securities believes investors would intend to purchase the tokens for financial purposes. In addition, these investors would anticipate their holdings to go up in value.
The Tel Aviv Municipality sent the Ramat Aviv Mall a municipal property tax bill for its common areas. The mall’s management argued that shop tenants must pay municipal property tax payments for these areas, under their lease agreements with the mall.
Categories: Real Estate
On December 30, 2020, the Israel Competition Authority (ICA) notified SOS, a company in the field of fueling services, it was imposing a financial sanction of NIS 6.3 million on the company. In addition, it imposed a financial sanction of NIS 350,000 on an executive officer in the company. Following a complaint an SOS competitor filed with the ICA, the ICA concluded SOS had entered into exclusivity agreements with its clients. The company also implemented a policy whereby it would not provide fueling services to a client if the client simultaneously engaged with a competing fuel service provider.
Categories: Competition Law and Antitrust
Israel entered another general lockdown, which began at midnight (January 8, 2021) and will continue until January 21, 2021. We have summarized the main guidelines concerning workplace activity during lockdown. The final and binding version of the regulations regarding workplace activity during lockdown have yet to be published.
The Israel Securities Authority (ISA) has announced that, temporarily, it will not initiate or recommend taking enforcement measures against corporations licensed in portfolio management, investment advising, and investment marketing that have not fulfilled professional liability insurance requirements.
Categories: Capital Markets
Israel’s Privacy Protection Authority published its guidelines and emphases for protecting the privacy of individuals when conducting COVID-19 epidemiological investigations in workplaces.
Last July, the National Labor Court issued an important ruling on a service user’s obligation to take part in the termination and hearing process for contract workers employed on site. According to that ruling, the extent of the service user’s participation in the hearing depends on the circumstances. Accordingly, in our previous update, we tried to predict the criteria that would be taken into account, in order to analyze how the National Labor Court’s ruling should be applied in various scenarios.
The COVID-19 crisis has thrown many employers into economic difficulties. In these uncertain times, many employers are asking themselves if they are obligated to pay their employees bonuses. Just before the end of 2020, the Tel Aviv Regional Labor Court issued a new ruling on this very subject.
In light of the COVID-19 crisis, many employers have been forced to reduce employees' salaries. Such reductions, when not made through agreements or in an orderly fashion, may be fertile ground for claims regarding material worsening of work conditions, effective termination proceedings, and creating a stress-filled work environment.
Israel's Ministry of Environmental Protection imposed a financial sanction of NIS 634,000 on Bazan Group's Gadiv Petrochemical Industries for not complying with a deadline to stop harmful emissions. The ministry stated that due to the severity of the violation, both a financial sanction and administrative enforcement measures would be imposed.
The Bank of Israel recently issued new rules on marketing and credit management. The purpose of the new rules is to prevent credit risks not tailored for the customer. They include restrictions on aggressive marketing and granting certain clients credit.
A recent amendment to the Consumer Protection Law seeks to place restrictions on telemarketing. As part of the amendment, the Consumer Protection and Fair Trade Authority will establish a database of consumers who don't want to receive telemarketing calls from various businesses. Businesses will not be able to contact a consumer whose telephone number is registered in this database, except in specific circumstances.
A statutory amendment to the Economic Assistance Program Law (Novel Coronavirus) (Temporary Order) arranges payment for employees absent from work due to mandatory quarantine. The new arrangement stipulates that an employee entitled to sick pay from the first day of absence is also entitled to quarantine pay from the first day of absence.
While the activity of most financial intermediaries in Israel is regulated and supervised, broker-dealers have so far operated in an unsupervised manner and without dedicated regulation. In light of this, the Israel Securities Authority has published a legislative memorandum aimed at regulating the field of broker-dealers in Israel.