Legal Updates

An officer of a company may be personally liable for offences by the company of employing foreign workers without a permit

March 5, 2020
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A company and its manager were indicted for employing a foreign worker without a permit and for not providing 15 foreign workers with adequate accommodation.
The Labor Court held that the company is to pay a fine of ILS 85,500 and the officer an additional ILS 42,500. An active manager of a corporation, a partner and a person responsible for the subject at the company, must supervise and do everything possible to prevent offenses of employing foreign workers and non-compliance is a personal criminal offense of the officer. Beyond the fact that employing foreign workers without a permit is a serious economic offense, providing adequate housing to foreign workers is part of the workers' fundamental right to dignity. Any foreign worker who is illegally employed or who does not receive adequate accommodation is considered a separate event and is subject to separate punishment. Here, because after the audit within a month the employment visa was settled and the residence arranged, the fine imposed was on the low side.