Policy Requiring All Employees to Shake Hands Discriminated Based on Religious Belief

Precedential Decision by Judiciary or Regulatory Agency

During a job interview, a job seeker refused to shake the company representative’s hand because her interpretation of Islam does not allow such greeting with a person of the opposite sex. The company then cancelled the interview and the recruitment process based on its policy that all employees should be able to greet with a handshake. On August 15, 2018, the Labor Court ruled that the company was liable for damages because the policy was not appropriate, necessary, and proportionate to achieve legitimate objectives, and unlawfully discriminated against women who, based on their religious belief, do not shake hands with men.

New Ruling on Non-Competition Clauses in Employment Contracts

Precedential Decision by Judiciary or Regulatory Agency

In a new ruling, the Labor Court has considered, inter alia, the reasonableness of non-competition clauses in employment contracts and the limits of the duty of loyalty. The ruling confirms previous case law that non-competition clauses are generally unreasonable if the employee does not receive any financial compensation for the undertaking. The Labor Court further found that the employee had breached the duty of loyalty during the employment, but that the company could not prove that it had suffered any financial damages due to the breach.