By Labour Law Department – KTA |
In recent times, many companies in Israel have gained the opportunity to recruit foreign nationals to fulfill roles within the industry and services sectors. Historically, only foreign experts with unique skills and knowledge could obtain work visas for Israel. However, the landscape has changed, allowing a broader range of foreign employees to enter the Israeli workforce.
Each company has its own methodology for recruiting, employment, and labor relations. This diversity necessitates the creation of tailored agreements that will be reviewed by foreign employees before their arrival in Israel. These agreements should serve as the basis for their expectations upon arriving in the country. If the agreement does not accurately reflect the relationship between the employer and the employee—such as details about shifts, work location, and other specifics—these gaps will become apparent once the employees are in Israel, leading to potential misunderstandings and dissatisfaction.
In the rush to bring these new employees into the country, many companies have resorted to using template agreements found online. These templates, often designed for healthcare, agricultural, or construction sectors, were modified by simply changing the names of the company and the employee. This approach assumes that the work and agreement requirements are identical across different sectors, which is far from the truth.
Common Issues with Template Agreements
Using generic templates has led to numerous problems. Upon arrival, many foreign employees faced misunderstandings regarding work shifts, duties, and responsibilities. These misunderstandings resulted in employees wanting to leave their jobs for other employers offering more tailored agreements or simply departing from Israel altogether. This situation has left many companies with significant investments wasted, as they only discovered these issues after the employees had already left.
Case Study: R. Levi Ltd.
Consider the case of R. Levi Ltd., a company based in Ashkelon that specializes in producing parts for the construction industry. The company employs over 120 local employees and operates in two shifts of 9 hours each. In the past, the company used to employ several dozen metal workers from Gaza; however, since October 7th, the company no longer employs them. The employer wanted the flexibility to determine which shifts the employees would work and allowed them to eat in the company restaurant during work hours. However, the agreement used by R. Levi Ltd. was not suitable for shift work and did not mention the company’s ability to deduct money from employees’ pay slips for meals consumed in the company restaurant.
As a result, there was much frustration and disagreement between the company and the employees. The employees eventually left for another company that offered more detailed and clear agreements. Had the agreement been drafted from the outset to allow the employer to deduct meal costs from pay slips and clarify the shift structure, these issues might have been avoided. Consequently, the employees could have continued working for the company that had invested significant effort and money to recruit them from abroad.
The Need for Customized Employment Agreements
To avoid these pitfalls, it is crucial for companies to draft personalized employment agreements that clearly outline job descriptions, work hours, shifts, and other specific details relevant to each company. A comprehensive employment agreement should include:
- Personal Details: Full names and identification of both the employer and employee, including visa or permit details.
- Employment Terms: Detailed position, duties, responsibilities, and commencement date.
- Work Location: Primary workplace and flexibility for transfers if necessary.
- Work Hours and Overtime: Standard working hours, break times, and terms for overtime approval and compensation.
- Salary and Benefits: Base salary, payment method, deductions, and additional benefits such as transportation, health insurance, and pension contributions.
- Leave Entitlements: Vacation days, public holidays, and sick leave policies.
- Housing and Living Arrangements: Details about employer-provided housing or a waiver of this obligation.
- Confidentiality and Non-Compete Clauses: Terms to protect sensitive company information and prevent competition.
- Compliance and Legal Obligations: Acknowledgment of workplace policies, including anti-harassment and safety regulations.
- Industry-Specific Agreements: Incorporate collective agreements or expansion orders that govern the employee’s rights and benefits in the relevant industry.
- Language of the Agreement: Provide the agreement in both Hebrew and a language understood by the employee to ensure clarity and mutual understanding.
Israeli law requires that the employment agreement between the foreign national and the Israeli employer be made in a language that the employee understands. Additionally, the law stipulates several unique requirements specific to foreign nationals.
Therefore, merely translating a standard agreement used for existing Israeli employees will also not meet the legal requirements. Employers must ensure that equality is maintained between foreign nationals and Israeli employees in terms of salaries for the same positions. Failure to uphold this obligation can lead to labor law litigation, with employees potentially filing claims against the employer.
Kan-Tor & Acco’s Expertise
Kan-Tor & Acco has been working with various industries for many years, specializing in tailoring employment agreements for foreign nationals coming into Israel. Our services include creating agreements that are customized to the employer’s needs while ensuring full compliance with Israeli law. We also assist our clients by translating the employment agreement into a language that is understandable by the employees, ensuring clarity and mutual understanding.
End Note
Drafting a customized employment agreement is essential for ensuring a smooth integration of foreign employees into the Israeli workforce. It helps prevent misunderstandings, protects the rights of both parties, and fosters a positive and productive work environment. Companies should invest time and resources into creating detailed and specific agreements rather than relying on generic templates found online.
By doing so, companies can safeguard their investments and ensure that foreign employees feel valued and understood, ultimately contributing to the success and growth of the Israeli industry and services sectors.
