Court Orders Firm to Pay 509k Shekels to Reservist Whose Salary Was Withheld
The Tel Aviv Regional Labor Court ordered Technoso Control Systems to pay 509,000 shekels to CTO Erez Cohen, whose salary was withheld while he served in IDF reserve duty.
While Erez Cohen was serving in IDF reserve duty and his family was evacuated from their home, the company where he worked received National Insurance benefits for him but withheld his salary for five months. Today, the Tel Aviv Regional Labor Court upheld his claims in large part, ordering Technoso Control Systems to pay him approximately 509,000 shekels, plus interest and legal fees.
According to the ruling handed down by Judge Kamel Abu Kaoud, Cohen began working at the company, which develops and markets smart parking management systems, in June 2023. Starting in September of that year, he was employed full-time as chief technology officer with a gross monthly salary of 55,000 shekels. With the outbreak of the war on October 7, he was drafted into prolonged reserve duty, during which his employment relationship with the company continued.
Benefits Received, Salary Halted
Initially, the company continued to pay Cohen his salary in accordance with his employment agreement. However, in May 2024, his salary was reduced to approximately 37,000 gross shekels per month, an amount roughly corresponding to the reserve duty benefits received on his behalf. From February to June 2025, the company completely stopped paying his salary, even though during that period it received 177,866 shekels in National Insurance benefits for him.
Cohen repeatedly approached company management demanding his salary and the settlement of his pension contributions. After his appeals went unanswered, he filed a claim with the labor court. In August 2025, he announced his resignation due to non-payment of wages and the violation of his social rights, subsequently filing an additional claim for severance pay and other benefits.
The company argued that the war severely harmed its business activity, leading to a drop in revenue and significant cash flow difficulties. It claimed that at the beginning of the reserve duty service it paid Cohen amounts higher than the benefits received for him, and was therefore entitled to offset the differences from his salary. It also claimed that he resigned without justification or prior notice, and that it had paid him all his rights and even beyond.
Financial Hardship Does Not Exempt from Payment
Compensation for Distress and Legal Costs
The court rejected the company's claims, ruling that no debt had been proven to justify delaying the salary. The judge clarified that an employer's obligation to pay an employee serving in reserves is not contingent on receiving funds from National Insurance, and financial difficulties do not exempt an employer from paying wages on time.
The company was ordered to pay Cohen 509,151 shekels, including unpaid wages, completion of severance pay, vacation pay, pension contributions, and damages for emotional distress resulting from the severe hardship he endured while serving in the reserves.
