6 September 2026ICE – משפט

Major Lawsuit Against Shufersal: Long-time Employee Claims Bad Faith Termination Near Retirement

Ran Dunio, a 40-year employee of the Shufersal chain, has filed a 430,000 NIS lawsuit alleging wrongful termination. The claim centers on his dismissal ten months before retirement, following a medical incident during the hearing process which the National Insurance Institute recognized as a work accident.

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

This case highlights the legal and economic risks involved in terminating older employees near retirement, underscoring the importance of conducting a proper and good-faith hearing process, even during periods of organizational efficiency.

Key points

  • ▪A long-time Shufersal employee is suing for 430,000 NIS for termination near retirement age.
  • ▪The National Insurance Institute recognized a medical incident experienced by the employee following his hearing summons as a work accident.
  • ▪The lawsuit alleges procedural flaws in the hearing, bad faith, and violation of the Equal Opportunities in Employment Law.
  • ▪Shufersal stated that the lawsuit has not yet been received and will be examined in the appropriate legal venues.
  • ▪The claim was filed against the backdrop of an efficiency program carried out by the Shufersal chain.

A legal case is currently occupying the Tel Aviv Regional Labor Court, in which a long-time employee of the Shufersal retail chain is challenging the circumstances of his termination. The plaintiff, 67-year-old Ran Dunio, who had worked for the chain since 1985 and held various management and training positions, claims his dismissal was carried out with fundamental flaws and in bad faith. According to the statement of claim, filed by attorneys Rachel Reznik and Dorit Meir, Dunio was considered a highly valued employee for decades and had received significant bonuses throughout his tenure.

However, as part of efficiency measures implemented by the chain, Dunio was summoned for a hearing in May 2024. The lawsuit alleges that upon receiving the hearing summons, the employee’s access to company systems was immediately blocked. Following these events, Dunio’s health deteriorated, and the National Insurance Institute recognized the medical incident he experienced as a result of the summons as a 'work accident. ' Despite his medical condition and being on sick leave, Shufersal completed his termination process in August 2025.

Dunio, who was only about ten months away from the legal retirement age, claims the dismissal was intended to deprive him of benefits granted to the chain's retirees. The claim is for 430,000 NIS and consists of various components, including compensation for procedural flaws in the hearing, bad faith termination, violation of the Employment (Equal Opportunities) Law, and compensation for emotional distress. The lawsuit asserts that the measures taken against him were unlawful and violated his social rights.

Shufersal responded that the lawsuit has not yet been received by the company and that upon receipt, it will be reviewed and addressed within the appropriate legal forums. These are allegations that have not yet been decided by the court, and the legal proceeding on this matter is still ongoing. The practical implication of this issue for employers and employees concerns the importance of adhering to a proper hearing process, regardless of organizational efficiency programs, and the extreme caution required when dismissing older employees near retirement age.

The case highlights the legal risk present when termination processes conflict with an employee's medical condition or legal protections for long-term employees, a fact that may lead to intervention by competent authorities.

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

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