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ARTICLE · 04 JULY 2017

Post- Merger Integration Dismissals

In the present case, the plaintiff employee was employed by an Israeli private company prior to the company's merger with a US public corporation.

IsraelEmployment and HR

In a recent decision, the Israeli Regional Labor Court ("Court") held that an employer is entitled to take personal and professional qualities into consideration when making decisions regarding the dismissal of employees following a corporate merger.

In the present case, the plaintiff employee was employed by an Israeli private company prior to the company's merger with a US public corporation. Following the merger the plaintiff was dismissed, whereas an employee with a parallel position in the acquiring company was retained.

The plaintiff contended that the dismissal was based on improper considerations, being made notwithstanding the plaintiff's professional achievements. The defendant employer disagreed, alleging that professional and personal attributes, including certain deficiencies in the plaintiff's work, were indeed relevant considerations.

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