The company in question decided to terminate an employee’s contract on the basis of a security camera recording which revealed that he had stolen certain goods while performing his duties as stock clerk. In the termination meeting, the company informed the employee of the legal and criminal consequences of his acts and then expressed its intention of dismissing him unless he signed the voluntary resignation letter they had prepared. The employee signed the resignation letter but filed a claim before the courts for unfair dismissal.

The High Court of Justice held that the company had failed to give the employee the necessary time to reflect on his decision and had to a certain extent threatened him in order to get him to sign the resignation letter. The Supreme Court however ruled that the employer’s act was permitted since stating the legal consequences of someone’s acts cannot be deemed threatening or against the principle of good faith, and that it was precisely the employee’s awareness of the seriousness of his acts that made him sign the letter.