Haskel, a favorite of the libertarian "Liberals in the Likud" faction, criticized the Supermarket Law, calling it an act of government coercion.
"Religion is a private matter. The state is not supposed to impose values or ways of life on its citizenry. I cannot abide by a law discriminating between cities and undermining the status quo."
The Supermarket law, which has been promoted by the Shas party, would empower the Interior Minister to strike down municipal bylaws permitting businesses to operate during the Sabbath.
Amsalem is said to be considering appealing the court's decision.
Likud High Court Judge Akiva Nof said during the discussion that the attempts to remove Haskel from the party are inappropriate. "They stuck Sharren in front of a firing squad," said Nof.
He added that the Likud's legal adviser should not have been approached about this issue at all, and should certainly not represent the party in such a discussion.
Criticism of Amsalem did not end there, with a second Likud judge claiming that "MK Amsalem is causing damage to the Likud faction."
MK Amsalem said before the hearing that MK Haskel was told by the party's legal advisor that if she did not vote in favor of the Supermarket Law, the Likud would terminate her party membership.
"Her behavior aids parties competing with the Likud, and this misstep constitutes a violation of the provisions of the movement's constitution, goals, and decisions," Amsalem said.