By KTA Compliance Team |
The Israeli Population and Immigration Authority, in coordination with law enforcement, has significantly intensified its enforcement operations against the illegal employment of foreign workers. Recent reports indicate a nationwide crackdown targeting various sectors—including construction, agriculture, and hospitality—aimed at identifying workers without valid permits or those exceeding the scope of their visas. This shift in policy reflects a heightened government priority to regulate the labor market and address security concerns by ensuring that every foreign national is accounted for and legally authorized to work.
Employers should be aware that the legal landscape regarding foreign labor has become increasingly stringent, with authorities moving beyond mere administrative warnings to more severe punitive measures. Recent enforcement actions have resulted in substantial financial penalties, the immediate suspension of business licenses, and, in some cases, the initiation of criminal proceedings against company officers. The current regulatory environment leaves little room for “good faith” errors, as the responsibility for verifying a worker’s status rests solely on the employer’s shoulders.
The intensification of these raids, as highlighted in recent media coverage, suggests a systematic effort to eliminate the employment of “illegal stayers” and those working outside their designated geographic or professional sectors. This zero-tolerance approach is being supported by enhanced inter-agency cooperation, making inspections more frequent and less predictable. For businesses relying on foreign personnel, the risk of operational disruption and reputational damage has reached an all-time high, necessitating an immediate shift toward proactive compliance.
In light of these developments, we strongly recommend that all employers conduct a comprehensive internal audit of their workforce documentation. This audit should verify that every foreign employee holds a valid, original work permit and that all mandatory payments, including the “Deposit Fund” and health insurance, are fully compliant with the Foreign Workers Law.
Examle Raid: Rishon LeZion and Rehovot
A prime example of this heightened enforcement is the recent large-scale raid in Rishon LeZion and Rehovot, where four bussiness owners were arrested on suspicion of severe labor violations and human trafficking. This joint operation, conducted by the Central District Police, the Population and Immigration Authority, and the Ministry of Labor, highlights the shift toward treating illegal employment as a serious criminal offense rather than a mere administrative oversight.
The details of the Rishon LeZion case serve as a critical warning for all business owners. In this instance, authorities discovered six workers from Sri Lanka and three illegal Palestinian residents being held in what were described as “slavery-like conditions.” The allegations include:
- Confiscation of Passports: Employers allegedly withheld original travel documents to prevent workers from leaving.
- Wage Violations: Promised salaries were reportedly not paid in full or at all.
- Threats and Coercion: Workers were allegedly threatened with immediate deportation to prevent them from contacting the authorities.
- Substandard Living Conditions: The investigation revealed that workers were housed in unacceptable environments, sometimes within the business premises themselves.
As a result of this raid, the suspects (men in their 20s and 30s) face severe criminal charges, and the authorities moved to issue administrative closure orders against the businesses involved. This case underscores that the “corporate veil” is increasingly thin; company officers are being held personally and criminally liable for the treatment and status of their foreign personnel.
Recommendation for Immediate Action: In light of this specific case, we strongly advise a “Zero-Tolerance” internal audit. Beyond checking for valid B1 visas, employers must ensure that:
- Original Passports are in the employees’ possession at all times (withholding them is a criminal offense).
- Wage Transparency is maintained, with clear proof of payment according to the minimum requirements for foreign experts or sector-specific laborers.
- Accommodation Standards meet the specific legal requirements for foreign worker housing.
Conducting a professional audit now is the only way to ensure your business is not the next target of these aggressive multi-agency enforcement operations. Ensuring that the company records are up-to-date and legally sound is the most effective defense against the current wave of enforcement and will safeguard for the organization from the severe consequences of non-compliance.
