By Amit Acco, Partner |
This article is based on data from Walla Economy : “From the Shadows: In the Absence of Enforcement, Foreign Workers Step Into the Spotlight.” by David Rosenthal 29.12.2024
In recent years, a concerning trend has emerged in Israel: a decline in adherence to the law regarding the employment of illegal foreign workers. Until recently, hiring a “pirate” foreign worker required a trip to areas like the central bus station in Tel Aviv. Today, due to a lack of substantial enforcement, these workers openly advertise their services on social media platforms.
Legal Framework vs. Reality
Under Israeli law, foreign workers are only permitted to work within the framework of a valid work permit and with a designated employer. However, in practice, many illegal foreign workers operate without fear, exploiting gaps in the enforcement system. For example, social media posts from Chinese workers offering their services to Israeli employers garner hundreds of enthusiastic responses, often with little to no public criticism.
Strengthening Enforcement Through Legislation
Aware of the growing issue, the government is stepping up its fight against illegal employment. The Knesset’s Foreign Workers Committee and the Population and Immigration Authority are spearheading initiatives, including proposed legislation requiring employers to verify, via a dedicated online interface, that foreign workers have valid work permits. The proposal establishes a legal presumption whereby employers who fail to conduct such verification will be deemed to have knowingly hired unauthorized workers unless proven otherwise.
Economic and Legal Employers’ Burden
Adv. Tsvi Kan-Tor, Chair of the Foreign Workers Committee at the Israel Bar Association and a partner at Kan-Tor & Acco, highlights the scope of the damage:
“The employment of illegal workers costs the Israeli economy hundreds of millions of shekels annually. These workers fail to pay taxes such as income tax, national insurance, and health insurance, resulting in significant revenue losses for the state. Additionally, legal employers bear a heavy burden. They invest substantial resources to bring workers legally, including costs for insurance and other expenses, only to have those workers leave for illegal employers. This leaves lawful employers without compensation or the ability to hire replacements due to allocation restrictions. The result is a chronic labor shortage, exacerbating gaps in the workforce and harming efficiency and economic growth.”
Call to Action
Chairman of the Foreign Workers Committee, MK Eliyahu Revivo, underscores the need for systemic solutions. He notes that a lack of enforcement personnel hampers the state’s ability to address the issue effectively. “We must encourage the exit of illegal migrants while addressing cases where deportation is not feasible,” he stated.
Adv. Kan-Tor emphasizes the need for combined action, including increased enforcement against illegal workers and substantial fines for employers violating the law. Current regulations impose administrative fines ranging from 5,000 to 10,000 NIS per worker employed illegally, with fines doubling for repeat offenses.
Conclusion
The current reality, where illegal foreign workers openly advertise their services on social media without fear, reflects the depth of the issue and the lack of deterrence in Israel. Addressing this phenomenon requires collaboration from all relevant stakeholders, alongside stricter legislation and enhanced enforcement measures.
At Kan-Tor & Acco, we urge employers to comply with the law and avoid the risks associated with illegal employment. Only through lawful and fair practices can a stable and equitable employment system be ensured, benefiting the entire economy.
