By Shai Nimrodi, Partner |
The issue of employing foreign workers in infrastructure development in Israel—especially within government-owned companies—frequently arises due to conflicting and often confusing legal restrictions. These contradictions create uncertainty and risk for managers in primary companies seeking to transfer manpower corporation employees to foreign construction workers. However, such employment is generally not legal when it comes to non-residential infrastructure projects (e.g., road construction).
This article outlines the legal requirements and possible solutions:
Legal Requirements for Employing Foreign Workers in Infrastructure
According to Israeli law, foreign workers employed in the construction industry may only work in specific areas, particularly residential construction and supporting infrastructure. Their work permits, issued through licensed manpower corporations, strictly limit the scope of their employment. Specifically, these permits allow them to work only on residential-supporting infrastructure, not on other types of infrastructure. This restriction applies to both private and government companies.
However, as of 2024, a government resolution (No. 1527) has allowed for a quota allocation of foreign workers in transportation infrastructure, following the Iron Swords War. This includes specific conditions under which foreign workers may be employed in infrastructure roles [1].
What Can Be Done Under the Current Legal Framework?
Given the legal challenges, several courses of action can help both public and private infrastructure companies employ foreign workers while remaining compliant with the law:
- Submit a Special Request to the Ministry of Interior’s Construction Division: A professional committee may review the case and recommend flexibility in employing foreign workers in non-residential infrastructure.
- Apply for a Special Allocation: Companies can request a special allocation from the Ministry of Infrastructure to directly employ foreign workers under minimum wage conditions. This approach has succeeded in other industries.
- Direct Employment of Foreign Experts: It may be possible to employ foreign experts with unique skills for short periods (up to 90 days), especially when high-level expertise is required.
- Long-Term Employment of Experts: For longer-term needs, companies can apply to the Ministry of Interior for customized permits, even if this involves higher wage obligations.
- Promote Policy Change Initiatives: KTA is currently (2025) leading an initiative with the Ministry of Interior and the Ministry of Infrastructure to establish a new procedure that facilitates the employment of foreign workers in strategic and national infrastructure projects, such as national energy facilities and oil refineries.
National Infrastructure Projects as a Workforce Challenge
The national infrastructure sector faces significant workforce challenges. In recent years, ad hoc solutions have been implemented, especially for strategic projects like light rail systems or national infrastructure facilities. In such cases, special requests are submitted to various government ministries and are evaluated based on the project’s nature and specific needs.
Conclusion
In conclusion, infrastructure companies face a complex legal landscape when it comes to employing foreign workers. Multiple strategies must be pursued to find lawful and practical solutions. These include appealing to special committees, promoting new government policies, and employing foreign experts according to company needs. Each solution requires collaboration with relevant regulatory bodies and a thorough understanding of legal and administrative requirements.
