ISRAEL Law and Practice Contributed by: Tal Segev, Segev Tal Sports Law
7. Employment Contracts and Rights 7.1 Sports-Related Employment Contracts All contractual relationships between clubs and pro - fessional athletes in Israel must be governed by a valid written contract (or another form of document setting out working conditions). This requirement is enshrined in local law. Accordingly, sports associations, in order to safeguard clubs, require them to engage players under a standard minimum contract, which sets out the respective rights and obligations of each party and specifies the basic terms relating to salary, scope of work, social rights, and similar matters. At certain amateur league levels, there is no manda - tory standard contract, and these athletes may be considered employees. In the event of a dispute, this will be determined on a case-by-case basis. There is no salary cap in Israel, though agents rep - resenting basketball players are required to oper - ate within salary cap restrictions. Anti-competitive clauses in contracts are prohibited, and whilst such restrictions are rarely encountered in managerial posi - tions, Israeli jurisprudence may permit them provided the individual receives prospective compensation. In any event, such clauses are of no practical relevance to sportsmen and women, principally because Israel is bound by the rules and regulations of the relevant international associations, which effectively prohibit such restrictions. 7.2 Employer/Employee Rights Sports governing bodies must comply with national laws governing the employer–employee relationship. These rules are strongly employee-oriented, on the basis that employers are regarded as the financially stronger party and therefore hold greater power in the employment relationship. As noted, there is a significant tension concerning the authority of ADR bodies to deal with disputes involv - ing mandatory rights. Recent case law has addressed this issue directly, establishing that purely contractual disputes may be referred to ADR bodies and sports governing authorities. However, where a dispute involves mandatory statutory rights, jurisdiction rests with the labour courts.
However, certain smaller or less prominent federations do not operate their own internal bodies. In such cas - es, disputes may be referred to a central arbitration body serving multiple sports federations. This frame - work provides an alternative to civil litigation, which is often slower, less specialised and less attuned to the time-sensitive nature of sporting competitions and seasons. Federations that rely on this central arbitration body recognise its authority to resolve disputes between athletes and clubs from the same federation or asso - ciation. 6.3 Sanctions, Remedies and Challenges The Israeli Sports Law empowers sports governing bodies to establish internal judicial systems, includ - ing disciplinary committees, arbitration panels and mediation mechanisms. These bodies operate with a degree of independence and are not strictly bound by civil procedural rules or case law, although they often reflect similar legal principles. One of the underlying objectives is to limit recourse to civil courts, except in exceptional circumstances, such as where a decision is alleged to contravene public policy. Sports governing bodies also possess effective enforcement tools. They can ensure compliance with internal decisions by imposing sanctions – financial or sporting – on parties that fail to abide by rulings issued through ADR mechanisms. In relation to external decisions, such as those of the civil labour courts, sports governing bodies enforce compliance through a practical mechanism tied to the annual budget confirmation process. At the com - mencement of each sporting season, football clubs must demonstrate that no final and binding verdict is outstanding against them in order to receive their yearly budget approval. This requirement serves as an effective lever for ensuring adherence to external legal decisions. Those wishing to challenge such decisions retain the right to approach the civil courts, provided they can establish a legal basis for doing so under the relevant legislation.
135 CHAMBERS.COM
Powered by FlippingBook