Labor Court Ruling on Gender Pay Discrimination

Last June, the Be’er Sheva Regional Labor Court published an unusual decision. It concerned a female pharmacist who earned a lower salary than a man performing similar work at a different pharmacy owned by the same employer.

That male employee worked a fewer number of hours than the female pharmacist and was entitled to more leave days than her. It was proven that the woman was employed in a “materially equal” job as the man – she was required to hold the same qualifications, had the same responsibility, exerted the same level of efforts and skills, and had the same environmental conditions for the performance of the job – and yet had been earning less than the man for no justifiable reason. It was therefore held that the female employee was entitled to compensation from the employer due to discrimination.

This decision joins another decision handed down recently, by the Tel Aviv Regional Labor Court, which held that the termination of older employees without proper cause and without their age and seniority being considered in their favor constitutes prohibited discrimination.

These decisions are part of a trend in the Labor Courts to establish a policy of employment diversity.

The Male and Female Workers (Equal Pay) Law provides that male and female workers employed by the same employer at the same workplace are entitled to equal pay for equal work, materially equal work, or equally valuable work. Despite the Law’s clear language, studies show that even today women earn less than men. This general rule applies across sectors, professions, and education, and is true for women in industry, high-tech, research, the academy, and more.

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For more information, contact a member of our Employment team.