A pension deposit that never arrived cost the employer dearly

A maintenance manager worked for about two months at Mimun David Ariza and Chemical Services in May-June 2016. Pension contributions were deducted from his salary but not transferred to the fund. In October 2020, his medical condition worsened, he lost his ability to work, and Menora Mivtachim refused to pay disability benefits due to a broken insurance continuity. The Be'er Sheva Labor Court ordered the company to pay 889,301 shekels.

A maintenance manager worked for about two months at Mimun David Ariza and Chemical Services, in May and June 2016. In the June pay slip, pension contributions for both months were deducted from his salary, but the money never reached his fund at Menora Mivtachim. By July, he no longer worked there. In October 2020, his medical condition worsened and he lost his ability to work. Menora Mivtachim determined that his joint disease predated the renewal of insurance, and since the five-year qualifying period had not yet passed, the benefit was not paid. The Be'er Sheva Regional Labor Court, headed by Deputy President Rachel Gross, established a direct causal link between the company's conduct and the damage to insurance, and ordered the company to pay 889,301 shekels in a single lump sum. The company argued that the employee delayed arranging the pension and submitted a false health declaration – the court accepted the false declaration claim and criticized his conduct, but ruled that this does not exempt the company from its obligation to transfer the deducted money. The article also includes a review of employer obligations for pension contributions since 2008, transfer deadlines, and recommendations for employees to verify contributions with the fund.