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Ruling: [We saw last time that pl’s compensation package as a worker was not settled.]
When one does work for another without a decision on his wages, he is paid by the low scale of workers (Rama, Choshen Mishpat 332:4; Shach ad loc. 15). However, this is within the realm of the type of job/worker involved. The Pitchei Choshen (Sechirut 8:(11)) says that if the employer knows that this employee is paid within the higher levels of the field, he cannot pay him like the lower levels. This applies here where def had paid handsomely for pl’s services as a consultant.
There are complications in determining appropriate compensation here, including: pl was afforded flexibility that was important to him; part of the compensation was pl’s chance of profit sharing. Still, though, the draft contract, which we know was considered seriously, serves as the best indicator.
Regarding severance pay, the US does not require it by law, but it is common in the workforce. Here, financial security was a basic tenet of pl’s demands. On the other hand, it is unlikely that def would have agreed to a full year of severance for a few months of work, and pl would have likely agreed to that. Therefore, based on compromise that resembles din, we award pl two months’ severance pay.
Specific monetary decisions- For work before Apr. 1, $20,000; for work from Apr. 1- June 10 - $29,110 (prorated according to the contract); expenses - $18,500 – as claimed by pl and not effectively refuted; severance pay - $25,000. The subtotal is $92,610, and we subtract the $52,181 already paid for an outstanding amount of $40,429.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
663 - Financial Security for a Partner/Worker? – part II
664 - Financial Security for a Partner/Worker? – part III
665 - Disappointment with Arba Minim Sales Provisions – part I
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Beit Din Eretz Hemda - Gazit
P'ninat Mishpat Limits of Interest Rate for Loan with Heter Iska – part I
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P'ninat Mishpat Payments after a Gradual End of Employment
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