43 Years in Civil Service: Accidental Discovery of Rank Error
The Regional Labor Court in Jerusalem rejected a former Government Companies Authority employee's claim for salary arrears prior to 2010 due to the statute of limitations, but awarded him 25,000 shekels for emotional distress, ruling that the state failed to protect his rights for over a decade.
Chaim Shlomo Yehuda Fisher served in the civil service for nearly four decades. An economist by training, he joined the Government Companies Authority in 1976, eventually rising to the position of senior division manager in accounting, taxation, and company valuation. The error in his assigned rank remained undetected for years and was discovered almost by chance.
In 2017, Fisher applied for a tender to lead the Government Companies Authority. His candidacy was rejected due to a perceived lack of senior management experience. Upon seeking clarification from the Ministry of Finance’s academic committee, he discovered that as early as 2004, having reached his seniority peak, he was entitled to a higher personal rank—rank 44, and subsequently a seniority supplement elevating him to 44+. Instead, he remained stuck at rank 43+ for over a decade.
While the state acknowledged the error and corrected his rank, the Ministry of Finance’s departmental committee limited retroactive salary payments to the seven years preceding the claim (from 2010 onwards), citing budget regulations. Fisher challenged this, but after his request was rejected by an inter-ministerial committee, he filed a lawsuit with the Regional Labor Court in Jerusalem following his 2019 retirement.
Court Ruling
Fisher argued that he was unaware of the existence of a seniority peak rank. However, Judge Rachel Berg-Hirschberg rejected this, classifying the situation as ignorance of the law rather than ignorance of facts. The judge emphasized that employees bear the responsibility to verify that their rights are being upheld, particularly at critical career milestones such as retirement.
The court also dismissed the argument that the state’s partial payment of arrears constituted an admission of the full claim, thereby resetting the statute of limitations.
Despite rejecting the primary financial claim, the judge criticized the state's conduct, noting that it was unreasonable for the employer to fail to conduct salary audits for over a decade when all necessary information regarding the plaintiff’s degree and seniority was available. The court noted that a simple digital notification system, as previously suggested by Fisher’s counsel, could have easily prevented the harm.
The court denied claims for linkage differentials, interest, and penalties on delayed pension contributions. However, Fisher was awarded 25,000 shekels for emotional distress, acknowledging his long tenure and the employer's ongoing negligence.
