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Labour Law Enforcement Enhancement Law, 5772-2011

חוק להגברת האכיפה של דיני העבודה, תשע"ב-2011

Published: 2011-12-19Consolidated Hebrew text as of 2026-08-11 · Last amended 2025-01-30✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

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Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

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Chapter V: Liability of an Employee in a Public Authority

Definitions – Chapter V§

34.

In this Chapter –

"responsible employee" means the head of a public authority;

"public authority" means a Government ministry or a supporting unit of a Government ministry that is not a corporation.

Breach of Supervisory Duty pursuant to a Warning Addressed to an Employee of a Public Authority that is an Employer§

35.
(a)Where a provision of a legislative enactment listed in the Second Schedule has been breached by a public authority that is an employer, the Commissioner may send the responsible employee in the public authority a warning to the effect that he must supervise the taking of measures by the public authority to stop the breach detailed in the warning or to prevent its recurrence, within the period of time specified in the warning.
(b)Where the measures referred to in the warning have not been taken, it shall be presumed that the responsible employee in the public authority has breached his duty under subsection (a), unless he proves that he did everything possible to fulfil his duty, and he is liable to the fine as referred to in section 61(a)(2) of the Penal Law, 5737-1977.

Breach of Supervisory Duty pursuant to a Warning Addressed to an Employee of a Public Authority that is a Service Procurer§

36.
(a)Where a provision of a legislative enactment listed in the Third Schedule has been breached by a contractor providing a service to a public authority that is a service procurer, the Commissioner may send the responsible employee in the public authority a warning to the effect that he must act to have the breach remedied by the contractor, or act in good faith to terminate the public authority's contract with the contractor and to forfeit the security given by the contractor, within the period of time specified in the warning.
(b)Where the breach has not been remedied by the contractor, or the public authority has not acted in good faith to terminate the contract with the contractor and to forfeit the security given by the contractor, as stated in the warning given pursuant to subsection (a), it shall be presumed that the responsible employee in the public authority has breached his duty to act as stated in the warning, unless he proves that he did everything possible to fulfil his duty, and he is liable to the fine as referred to in section 61(a)(1) of the Penal Law, 5737-1977.

Liability of an Employee of a Public Authority that is a Service Procurer in respect of a Contract Entered into with a Contractor§

37.
(a)The responsible employee in a public authority that is a service procurer is obliged to supervise and do everything possible to prevent an offence as referred to in section 31(b) being committed by the public authority or by any of its employees; a person who breaches that duty is liable to the fine prescribed in section 61(a)(1) of the Penal Law, 5737-1977.
(b)Where an offence under section 31(b) has been committed by a public authority or by any of its employees, it shall be presumed that the responsible employee in the public authority has breached his duty referred to in this section, unless he proves that he did everything possible to fulfil his duty.

Prior Approval for Filing an Indictment§

38.

An indictment under this Chapter shall be filed with the approval of the Attorney General.

Disciplinary Offence§

39.

An offence under this Chapter shall also be deemed a disciplinary offence of the responsible employee, within the meaning of section 17(2) of the State Service (Discipline) Law, 5723-1963.

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Chapter VI: Certified Wage Auditor

Certificate of Recognition§

40.
(a)The Minister may grant a person a certificate of recognition as a certified wage auditor, for the purpose of conducting periodic audits as referred to in this Law in respect of the conformity of employees' working conditions to labour law, if all of the following apply to that person:
(1)he is a professional or holds an academic degree that the Minister, with the approval of the Labour, Welfare and Health Committee of the Knesset, has determined to be suitable for the purpose of recognising him as a certified wage auditor, having regard to the fields of knowledge acquired in that profession or degree that are relevant to payroll management for employees and to ensuring compliance with the provisions of labour laws, including in the fields of labour law, employment taxation, accountancy, quality assurance, auditing, control and supervision;
(2)he has not been convicted of a criminal offence or a disciplinary offence under a legislative enactment which, by reason of its nature, gravity or circumstances, renders him unworthy of receiving a certificate of recognition; for this purpose, "convicted" includes a person whom a court or a regional court has found to have committed the offence;
(3)he has met the training requirements, including practical training and professional development courses, and has passed examinations, in all matters relating to the conduct of periodic audits as referred to in Chapters III and IV, as determined by the Minister as referred to in subsection (b).
(b)The Minister, in consultation with the Minister of Finance and the organisations and with the approval of the Labour, Welfare and Health Committee of the Knesset –
(1)shall determine provisions relating to training requirements and examinations for the receipt of a certificate of recognition, and may determine the required scope of training hours and professional development courses and their content; requirements and examinations as aforesaid may be general or may be determined for different types of professionals or holders of academic degrees;
(2)may determine fees in respect of an application for a certificate of recognition, in respect of the training and in respect of the examinations.
(c)Without derogating from the provisions under this Chapter, the Minister may decline to grant a certificate of recognition to a person if findings have been made against him in a final judgment which, by reason of their nature, gravity or circumstances, render him unworthy of receiving a certificate of recognition, provided that the Minister has given him an opportunity to state his arguments.

Application for a recognition certificate§

41.
(a)A person applying to receive a recognition certificate as a certified wage auditor shall submit an application to the Minister or to a person authorised by the Minister for that purpose; the applicant shall attach to the application documents attesting to the fulfilment of the conditions for the grant of a recognition certificate under section 40.
(b)The Minister may require a person submitting an application for a recognition certificate to provide any information or document required for the purpose of a decision on the application.

Publication of the list of certified wage auditors§

42.

The Minister shall publish the list of certified wage auditors on the website of the Ministry of Industry, Trade and Employment.

Revocation, restriction or suspension of a recognition certificate§

43.

The Minister or a person authorised by the Minister for that purpose may order the revocation of a recognition certificate, its restriction or its suspension for a period to be determined, after affording the certified wage auditor an opportunity to state his arguments, upon the occurrence of one of the following:

(1)the certificate was granted on the basis of incorrect or false information;
(2)a condition among the conditions for the grant of a certificate under section 40 has ceased to be fulfilled;
(3)the certified wage auditor has displayed irresponsibility or negligence in the performance of his duties, or has acted in a conflict of interests.

Conflict of interests§

44.

A certified wage auditor shall not act in a conflict of interests, and in particular shall not be an employee of a contractor or of a service customer in respect of whom or at whose request the certified wage auditor conducts periodic audits, or an employee of a person with a connection to either of them, and shall not be an office holder in them.

Regulations regarding periodic audits by a certified wage auditor§

45.

The Minister, in consultation with the Minister of Finance and the organisations and with the approval of the Labour, Welfare and Health Committee of the Knesset, shall prescribe provisions regarding the conduct of periodic audits by a certified wage auditor as referred to in Chapters III and IV, including, inter alia, on the following matters:

(1)the content of the audits, including the conformity of the working conditions provided to an employee with the requirements of labour law, and the verification of information regarding the actual execution of payments;
(2)the manner of conducting the audits, including the information and documents to be examined, the frequency and scope of the audits and the dates on which they are to be conducted;
(3)the approval to be granted following the conduct of a periodic audit.

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Chapter VII: General Provisions

Employment relations between an employee of a contractor and a service customer§

46.
(a)Nothing in the provisions of this Law shall create employment relations between a service customer and an employee of a contractor employed by the service customer.
(b)Nothing in the provisions of this Law alone shall preclude the existence of employment relations between a service customer and a person who commenced performing the service for the service customer as an employee of a contractor.

Preservation of rights§

47.

Nothing in the provisions of this Law shall derogate from any right vested in an employee under any law, collective agreement, extension order, contract or custom.

Savings provisions§

48.

This Law is intended to add to the provisions of any enactment and not to derogate therefrom.

Prohibition of stipulation§

49.
(a)The right of an employee of a contractor vis-à-vis a service customer under this Law is not subject to stipulation or waiver.
(b)A provision in a contract whereby an employee of a contractor has waived in advance his right vis-à-vis a service customer under this Law, or a provision in a contract that stipulates against the right of an employee as aforesaid vis-à-vis a service customer under this Law, whether expressly or by implication, shall have no effect, whether a party to the contract is the service customer, the contractor or another party, and whether the waiver or stipulation is vis-à-vis a specific or unspecified service customer.
(c)No person shall indemnify or pay, directly or indirectly, a financial penalty imposed on another under this Law, and a provision or undertaking to pay or to indemnify as aforesaid is void.
(d)No person shall be insured, directly or indirectly, against a financial penalty imposed on that person under this Law, and entry into a contract of insurance as aforesaid is void.
(e)A term in a contract between a service customer and a contractor providing for indemnification of the service customer or payment to the service customer in respect of the service customer's liability under this Law shall have no effect.

The law applicable to the State as employer and as service customer§

50.

The law applicable to the State as employer or as service customer for the purposes of this Law is the same as the law applicable to any other employer or service customer, as the case may be.

Amendment of the Schedules§

51.
(a)The Minister, with the consent of the Minister of Finance, in consultation with the organisations and with the approval of the Labour, Welfare and Health Committee of the Knesset, may, by Order, amend the First Schedule, provided that the Minister shall not add to the Schedule a sector in which the average wage paid therein according to the data of the Central Bureau of Statistics exceeds the average wage as defined in the National Insurance Law [Consolidated Version], 5755-1995.
(b)The Minister, in consultation with the Minister of Finance, the Minister of Justice and the organisations and with the approval of the Labour, Welfare and Health Committee of the Knesset, may, by Order, amend the Second Schedule and the Third Schedule.

Implementation§

52.

The Minister is responsible for the implementation of this Law.

Commencement and first Regulations§

53.
(a)This Law shall come into force six months from the date of its publication (hereinafter – the commencement date).
(b)First Regulations as detailed below shall be brought for approval by the Labour, Welfare and Health Committee of the Knesset within the period specified alongside them:
(1)under section 28(b) – nine months from the date of publication of this Law;
(2)under section 45 – 12 months from the date of publication of this Law.

Temporary provision§

54.

During the period of 18 months from the commencement date, the following sections shall be read as follows:

(1)in section 27(2), instead of "periodic audits conducted by a certified wage auditor, pursuant to the provisions of Chapter VI" there shall come "audits by an accountant conducted in respect of at least 10% of the employees, at least once every nine months";
(2)in section 33(b)(4), instead of "periodic audits conducted by a certified wage auditor, pursuant to the provisions of Chapter VI" there shall come "audits by an accountant conducted in respect of at least 10% of the employees, at least once every nine months".

Amendment of the Labour Court Law – No. 39§

55.

In the Labour Court Law, 5729-1969, in the Second Schedule, at the end thereof there shall come:

"Sections 24, 31, 32, 33, 36 and 37 of the Labour Law Enforcement Enhancement Law, 5772-2011.".

Amendment of the Public Bodies Transactions Law – No. 8§

56.

In the Public Bodies Transactions Law, 5736-1976 –

(1)in section 2b –
(a)in the marginal heading, instead of "Payment of minimum wage and lawful employment of foreign workers" there shall come "Compliance with labour laws – condition for a transaction with a public body";
(b)in subsection (a), in the definition "offence", at the end thereof there shall come "and, with respect to transactions for the receipt of a service as defined in section 2 of the Labour Law Enforcement Enhancement Law, 5772-2011, also an offence against the provisions of the enactments listed in the Third Schedule to that Law;";
(c)in subsection (b), the text thereof shall be marked "(1)" and thereafter there shall come:

"(2) A public body shall not enter into a transaction with a supplier for the receipt of a service as defined in section 2 of the Labour Law Enforcement Enhancement Law, 5772-2011, for the public body, unless the representative of the public body in that transaction has been satisfied, on the basis of a written declaration by that supplier, that all of the following conditions have been fulfilled:

(a)that up to the date of the transaction the supplier and a person with a connection to the supplier have not been convicted of more than two offences, and if they have been convicted of more than two offences – that at the date of the transaction at least three years have elapsed since the date of the last conviction;
(b)that in the three years preceding the date of the transaction, financial penalties have not been imposed on the supplier or on a person with a connection to the supplier in respect of more than six contraventions constituting an offence;
(3)For the purposes of paragraph (2)(b), a number of contraventions in respect of which a financial penalty was imposed shall be regarded as one contravention if the director of the Administration of Regulation and Enforcement in the Ministry of Industry, Trade and Employment has certified that the contraventions were committed against one employee during one period on the basis of which the employee's wages are paid.";
(d)in subsection (b1)(2) –
(1)in sub-paragraph (a), after "minimum wage" there shall come "or in all matters relating to the preservation of employees' rights in transactions for the receipt of a service as defined in section 2 of the Labour Law Enforcement Enhancement Law, 5772-2011";
(2)in sub-paragraph (b), after "has been convicted of offences" there shall come "or financial penalties have been imposed on the supplier in respect of contraventions constituting an offence";
(3)in sub-paragraph (c), after "to the supplier" there shall come "or financial penalties have been imposed on the supplier in respect of contraventions constituting an offence".

Amendment of the Employment of Employees by Manpower Contractors Law – No. 9§

57.

In the Employment of Employees by Manpower Contractors Law, 5756-1996, in section 21a, instead of "as it" there shall come "as any other person and as it".

Repeal of the Wage Protection (Financial Penalty) Law§

58.

The Wage Protection (Financial Penalty) Law, 5769-2009 – is repealed.

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