A blow to Domino's Pizza: Court approves class action lawsuit against it

The Labor Court made a decision in favor of couriers and hourly workers employed over the last seven years, setting new rules regarding overtime pay, bonuses, and Sabbath work compensation.

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A blow to Domino's Pizza: Court approves class action lawsuit against it
Photo: ICE / פיצה (צילום shutterstock)

In the restaurant and fast-food world, working weekends and night shifts is routine, but the social rights of hourly workers often remain in a gray area. Now, a decision by the Tel Aviv Regional Labor Court puts the Domino's Pizza chain in the spotlight, approving a class action lawsuit against it on behalf of couriers and hourly workers employed over the last seven years.

The lawsuit, filed by a former courier through attorney Asaf Cohen, raises three central disputes that characterize the entire industry:

  1. The chain set fixed end times for Friday shifts regardless of the actual sunset time. The court ruled that an employee who did not receive 36 hours of continuous rest before returning to work on Saturday night is entitled to increased Sabbath pay for those hours as well.

  2. It was determined that a bonus paid to couriers regularly and consistently based on the number of orders is not an external addition, but a crucial part of the regular wage. Therefore, overtime and Sabbath pay must be calculated from it.

  3. The court clarified that the burden of proof that an employee was absent of their own volition around holidays lies with the employer. If employees were forced into leave, they are entitled to full payment.

Conversely, the Domino's Pizza chain rejected the claims and argued that the company operates according to the law, emphasizing that the varying employment conditions are not suitable to be heard as a class action. The court rejected this position, approved the continuation of the proceedings, and ordered the company to pay an initial legal fee of 20,000 shekels.

"The court's decision marks a clear boundary for food and service chains in Israel: complex wage models, attempts to shorten the boundaries of the Sabbath, or disguising basic wage components as bonuses are no longer immune to judicial review."

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