By Amit Acco, Partner |
During 2024, Israel has witnessed a notable increase in enforcement actions against illegal employment, particularly targeting foreign nationals working without proper authorization. This surge in enforcement and court judgement efforts is driven by various factors, including the imperative to preserve employment opportunities for Israeli citizens, the necessity of upholding legal standards, and the protection of migrant workers from exploitation. The stringent measures adopted by Israeli authorities and courts underscore a commitment to combatting illegal employment practices and ensuring compliance with immigration laws.
Increased Inspections
The enforcement of regulations pertaining to illegal employment in Israel carries significant repercussions for both managers at the company and employees. It is crucial to recognize that employing individuals without valid work permits constitutes a criminal offense under Israeli law. The consequences of such transgressions extend beyond mere administrative penalties, encompassing severe punitive actions such as deportation of the employee, blacklisting of the employing company, imposition of criminal and monetary charges, and prohibition on hiring foreign nationals in the future.
One of the primary motivations driving the heightened enforcement of illegal employment laws in Israel is the imperative to safeguard job opportunities for local Israelis. With a focus on bolstering domestic employment rates and mitigating unemployment challenges, Israeli authorities are intensifying efforts to ensure that job vacancies are filled by eligible Israeli citizens or individuals possessing valid work permits. By cracking down on illegal employment practices, authorities aim to create a level playing field wherein local workers are not disadvantaged by unfair competition from undocumented foreign labor.
The recent surge in enforcement actions has seen numerous inspections conducted across various sectors and regions in Israel. From factories and retail establishments to cleaning services and agricultural enterprises, authorities are proactively targeting areas where illegal employment is prevalent. A noteworthy example of this enforcement zeal is exemplified by a recent operation led by the Tel Aviv Region in collaboration with the Central Region and the Enforcement and Aliens Administration of the Population and Immigration Authority last week (May 2024). In this operation, 40 foreign nationals detained for illegal employment in a bakery.
The detained individuals hailed from diverse countries, reflecting the multinational composition of Israel’s migrant workforce. The apprehension of these individuals underscores the pervasive nature of illegal employment practices and the imperative to address them through robust enforcement measures.
Following the inspection, the detained foreign nationals were taken into custody pending further legal proceedings. Simultaneously, an investigation was initiated against the employer for engaging in illegal employment, signaling the seriousness with which such infractions are treated by Israeli authorities. The Population and Immigration Authority reiterated its unwavering commitment to combating illegal employment, emphasizing that enforcement efforts would be conducted without compromise.
Escalation in the Severity of Punishments
Alongside the intensified enforcement efforts, there has been a notable escalation in the severity of punishments meted out to companies and managers found guilty of illegal employment practices in Israel. A case study from the judgment section (3.12.23) conducted by KTA vividly illustrates this trend. In an inspection conducted at the Rami Levy branch the authorities discovered 22 foreign workers without proper work visas, some of whom were categorized as infiltrators, while others held work visas with restrictions. The subsequent legal proceedings resulted in significant penalties being imposed on the offending parties recently.
The company implicated in employing 19 out of the 22 workers, faced stringent repercussions. In January 2021, the company was fined a staggering NIS 25,000 for each illegally employed worker, totaling NIS 800,000.
Additionally, a manager within the Rami Levy network, responsible for hiring the workers, was individually found guilty and fined NIS 12,500 for employing two foreign workers without proper documentation. These penalties underscore the gravity with which illegal employment offenses are treated by the Israeli judicial system, as well as the intension of the court system to look into the individual managers responsibility.
Proactive measures adopted by companies to prevent future violations
Furthermore, the case highlights the proactive measures adopted by companies to prevent future violations. Following the sentencing, the Rami Levy network transitioned from employing workers through third parties to direct employment, demonstrating a commitment to compliance with legal requirements. While acknowledging the economic challenges faced by businesses, the court emphasized the importance of deterrence and accountability in maintaining the integrity of labor regulations.
President (Judge) Zvi Frankel’s remarks underscore the nuanced approach taken by the judiciary, considering factors such as the duration of the offense and the defendant’s personal circumstances in determining appropriate penalties. This case serves as a poignant reminder of the repercussions awaiting those who flout immigration laws, reaffirming the imperative of adherence to legal standards in the employment sphere.
KTA Advise
In light of the escalating enforcement actions and stringent judicial punishments imposed on companies found guilty of illegal employment practices in Israel, KTA urges all clients to proactively avoid engaging illegal workers at their premises, particularly during this period of heightened inspections and harsh judgments. It is imperative for businesses to uphold ethical standards, adhere to legal requirements, and prioritize the employment of individuals with valid work permits. By ensuring compliance with immigration laws and exercising due diligence in hiring practices, companies can mitigate legal risks, safeguard their reputation, and contribute to the promotion of fair and lawful employment practices in Israel.
