By KTA Media Team |
The Labor and Welfare Committee recently greenlit regulations poised to impact the landscape of foreign labor in essential infrastructure projects. With an eye toward maintaining equilibrium in the job market, the committee sanctioned a move extending deposit obligations to employers of foreign workers within this sector.
Government Resolution 175 and Recruitment Initiatives
Spearheaded by Government Resolution 175 in February 2023, this mandate facilitates the recruitment of up to 1,500 foreign workers, primarily tasked with pivotal roles in constructing roads, bridges, power plants, and other vital infrastructure components.
Protection of Israeli Labor Interests
The Committee emphasized the imperative of safeguarding the interests of Israeli laborers amidst this influx of foreign workforce. In response, the Ministry of Finance’s budget division assuaged concerns, citing the conservative quota as a protective measure against any adverse impact on local employment, underscoring the magnitude of the government’s infrastructural investments and the abundant opportunities they herald for domestic workers.
Supplementary Regulations and Departure Timelines
Expanding on these deliberations, the committee further endorsed supplementary regulations tailored to complement the newly enacted legislation. A key highlight of these amendments lies in the revamped mechanism governing the deduction of deposit funds from foreign workers failing to adhere to departure timelines.
Gradual Deduction Process
Under the revised framework, departing employees will receive an upfront disbursement of 25% of their deposit, regardless of their departure status. However, for those overstaying their visa tenure, a phased deduction process will ensue, culminating in the full forfeiture of deposits for individuals exceeding the 12-month threshold of unlawful residency.
Balancing Infrastructural Development and Local Employment
These regulatory overhauls signify a proactive stride towards optimizing the integration of foreign labor while upholding the integrity of the domestic workforce. By striking a delicate balance between facilitating infrastructural development and safeguarding local employment interests, policymakers aim to navigate the evolving dynamics of the labor market with prudence and foresight.
Additional information
Prior to this new regulation, employers within the construction industry and those utilizing unique technologies were obligated to withhold a portion of their employees’ salaries each month to ensure their departure from Israel upon the expiration of their visas. Now, this obligation extends to employers in the infrastructure sector as well.
The rationale behind this requirement is to prevent instances where foreign employees may illegally remain in the country post-employment, thereby mitigating potential legal and administrative complications. By instituting this deposit system, the government aims to motivate foreign workers to adhere to their visa terms and return to their home countries upon the conclusion of their work permits. The deposit amount comprises the compensation component and the employer’s contribution to the pension, as stipulated for full-time positions in accordance with applicable expansion orders or collective agreements.
Typically, the deposited funds are refunded to the employer upon the timely departure of the foreign employee, provided all obligations are met. However, failure to adhere to visa requirements may result in forfeiture of the deposit or its utilization to cover associated costs or penalties. his deposit mandate forms part of the broader regulatory framework governing the employment of foreign workers in Israel, designed to uphold compliance with immigration laws and regulations. Employers and foreign employees alike must be cognizant of these requirements and ensure their fulfillment to forestall any potential legal repercussions.