Compliance, Inspections and Penalties
Getting Ready for Work Site Inspection
In recent years, various foreign employers’ premises and sites have undergone professional inspections by both the Ministry of Trade, Industry, and Labor and the Israeli Ministry of Interior. This includes well-known high-tech companies, multinational corporations, and others.
During these inspections, HR managers are reviewed on various legal issues, including:
- A list of all foreign employees employed in Israel;
- Copies of visas in the employees’ passports;
- Copies of the last three months’ payroll slips;
- A valid contract of employment;
- A valid health insurance certificate;
- Adequate housing proof for foreign employees.
Given the results of these inspections, it is highly recommended that every company maintain copies of these documents in an organized folder.
Kan-Tor & Acco clients have the benefit of our assistance in preparing a comprehensive immigration handbook for the company. We recommend keeping this handbook together with the organized folder.
Please note that these inspections are conducted in accordance with the law on foreign employees. A copy of this law is suggested to be kept in the folder mentioned above.
The illegal employment of a foreign employee in Israel, as well as not providing the foreign employees with their rights, attracts both monetary and criminal prosecution for both the employee and employer.
The following is a summary for noncompliance in Israel:
- Financial Fines According to the Penal Law – depends of the violation, the number of assignees found illegally working, length of the prolonged illegal working etc. Fine may be imposed on both for the company and its managers personally.
- Charged with a criminal indictment and possible imprisonment – both for the company and its managers.
- Company’s name will be published on government website
- Company’s representative may be individually liable and subject to civil and criminal penalties and fines, including imprisonment
- Black listing of company from the ability to apply for a future work visas.