Compliance, Inspections and Penalties
Getting Ready for Work Site Inspection
In the last few years there have been many professional inspections by both the Ministry of Trade, Industry & Labor as well as the Israeli Ministry of Interior’s inspectors, at various foreign employers’ premises and sites. This includes well known high-tech companies, multinational companies and others.
During these inspections, the inspectors review the following legal issues, among other issues, with the HR manager:
- List of all foreign employees employed in Israel,
- Copy of the visas in the employees passports,
- Copies of last 3 months payroll slips,
- Copy of a valid contract of employment,
- Copy of a valid health insurance certificate,
- Proof of adequate housing for the foreign employees.
As a result of these inspections, we strongly recommend that every company will maintain copies of the above mentioned data & documentation in a well-organized folder.
As a benefit to Kan-Tor & Acco clients, we assist in the preparation of a company detailed immigration handbook. We recommend having this handbook together with the organized folder.
Please be aware that these inspections are performed pursuant to the foreign employee law. We suggest keeping a copy of this law 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.
- Revocation of visa and obligation to leave the country either through deportation or willingly departure.
- Black stamp applied on the passport
- banning entry to Israeli for up to 10 years and restricting entry to other countries (such as US)