salary inspection by The Law for Increased Enforcement of Labor Laws

The Law for Increased Enforcement of Labor Laws came into force on June 16, 2012.

In the framework of the Law, the responsibility of the recipient of services in the fields of guarding, security, cleaning and catering is grounded in administrative, criminal and civil procedures.

The law defines the recipient of services, both in the private and the public sector, as responsible for the conditions of the workers’ employment, even although there are no employer-employee relations between them.

Use of the services of an authorized salary inspector, a range of sanctions against employers, responsibility of the recipient of services for contractor employees, self-examination by employers by means of salary inspectors, as well as prohibition of recklessly offensive bids and engagements, make the new law important and revolutionary in the labor market in Israel.

The Law’s aims are:

1‎.‎ Creation of a new relationship between employers and workers in Israel.

2‎.‎ A balance between the interest of the employers and that of the workers.

3‎.‎ Creation of a clear situation where the employer knows his obligations and the worker knows his rights and that there is someone who will protect him.

4‎.‎ Reinforcement and more effective enforcement of labor laws by introducing an administrative procedure to impose a financial sanction on employers and recipients of services in fields in which the majority of workers do not know how to defend their rights.

 For the first time, the Law makes provision for enforcement of rights by force of extension orders and, for the first time, the contractor’s obligation to enforce labor laws towards his employees has become the obligation of the recipient of services to the same extent.

One of the major defenses that protects a normative contractor and employer as a recipient of services against legal action resulting from the provisions of the Law is execution of  periodic checks by an authorized salary inspector, while amending violations and ensuring fair employment.

The Law defines a new, more effective enforcement procedure and differential punishment in accordance with the severity of the offence and the employer’s employment history.

As an inseparable part of enforcement, the team of inspectors and employees involved in enforcement of the labor laws are expected to reach a total of about 320 workers, in the framework of the new law.

Clause 27 of the Law for Increased Enforcement of Labor Laws presents the defenses available to the recipient of services:

1‎.‎The violation of the obligation has been fully amended.

2‎.‎The recipient of the service relied on periodic examinations carried out by an authorized salary inspector, and when the violation was discovered, acted to amend it. When it was not amended, the contract with the contractor was cancelled.

3‎.‎The recipient of the service relied on examinations carried out by an authorized inspector, according to which the obligation was carried out by the contractor.

Who is an authorized salary inspector?

According to Clause 54 of the Law, the temporary order in force at the moment, an authorized salary inspector is an accountant.

Our firm, Ezra Kadouri and Co., Certified Public Accountants, carries out periodic examinations that accord with the requirements of the Law in the field of salary inspections by a team of experts with extensive experience in the field of salary inspections who are familiar with the provisions of the Law and the relevant instructions. We carry out these ongoing examinations in government and public bodies that employ dozens of manpower companies and thousands of workers.

The salary inspections are carried out thoroughly and effectively in a purpose-built digital system developed by us.

As part of the salary inspection, analysis and inspection of the salary files will be carried out, including tracking payments such as annual vacations, payments for work hours and overtime, travel expenses, annual holiday pay, work on weekly rest days, sick leave, checking documents, pay for public holidays, etc.

As well as the above, our firm provides additional services in the field of salary inspection such as:

  • Advice on the subject of drawing up an engagement agreement between the recipient of services and the contractor that will meet the law’s requirements.
  • Updating the pricing list that is an appendix to the engagement agreement in accordance with updates of the Law.
  • Financial quantification of the total of the infringements that took place during the entire period of the engagement.
  • A lateral inspection to amend the deficiencies that were found in the report.

 

The Law for Increased Enforcement of Labor Laws:

Recommended websites:

Ministry of Economic Affairs – Labor Laws in Israel

All Rights (Kol Zchut)

The Workers Portal