30 August 2026ICE – משפט

Landmark Ruling Against Shlomo Sixt: Pension Contribution Liability

The Tel Aviv Regional Labor Court ruled that Shlomo Sixt violated employees' pension and vacation rights for over a decade. The company was ordered to pay approximately 4.7 million ILS in compensation, with the court rejecting arguments regarding financial instability.

Source transparency

This is an original newsroom summary and analysis. The source was not reproduced, and readers can inspect the original publication.

Original publication at ICE – משפט

Why it matters

The ruling clarifies that employers may not exclude commissions from pensionable salary in violation of collective agreements and emphasizes that social rights must be granted from the first day of employment.

Key points

  • ▪The Labor Court ordered Shlomo Sixt to pay ~4.7 million ILS for labor rights violations.
  • ▪Breaches included failure to make full pension contributions and provide mandated vacation days.
  • ▪The court affirmed that sales commissions are part of the salary for pension calculation purposes.
  • ▪The company's claims regarding financial hardship were rejected due to lack of evidence.
  • ▪Shlomo Sixt is considering an appeal to the National Labor Court.

In a significant ruling by the Tel Aviv Regional Labor Court, it was determined that the vehicle rental company Shlomo Sixt systematically deprived its employees of social rights for over a decade. According to the court's findings, as reported by ice, the company breached obligations regarding pension contributions and annual leave as mandated by the sector's collective agreement. The court found that Shlomo Sixt routinely delayed pension contributions for new hires, waiting until after a probationary period—a practice deemed contrary to both law and collective bargaining agreements.

Furthermore, the company excluded sales commissions from pensionable salary calculations and failed to provide mandatory 'elective' vacation days. During proceedings, evidence showed that long-term drivers and sales staff, who earned substantial commissions, did not have these commissions included in their pension calculations. The court rejected the company's defense that the collective agreement was invalid or that these sums were negligible. Moreover, the judges dismissed arguments that the compensation would threaten the company's financial viability, citing a lack of evidentiary support or affidavits.

Consequently, the company was ordered to pay approximately 4. 7 million ILS, with individual payouts to be calculated by a court-appointed expert. The ruling reinforces the obligation of employers to adhere to collective agreements and clarifies that sales commissions are an integral part of pensionable wages. Shlomo Sixt stated it is reviewing the decision and considering an appeal to the National Labor Court.

General information only. This item is not legal advice and does not replace review of the original source.

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