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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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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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Section D: Publication regarding the Imposition of a Monetary Penalty

Publication regarding the Imposition of a Monetary Penalty§
17.
(a)Where the Commissioner has imposed a monetary penalty pursuant to the provisions of this Chapter, the Commissioner shall publish on the website of the Ministry of Industry, Trade and Employment the following details in a manner that ensures transparency regarding the exercise of discretion in making the decision to impose the monetary penalty:
(1)the fact of the imposition of the monetary penalty;
(2)the nature of the breach for which the monetary penalty was imposed and the circumstances thereof;
(3)the amount of the monetary penalty imposed;
(4)if the monetary penalty was reduced pursuant to the provisions of section 8 – the circumstances by reason of which it was reduced, the amount of the penalty and the rates of reduction;
(5)details concerning the offender;
(6)the name of the offender, unless the offender is an individual.
(b)Where a monetary penalty has been imposed and an appeal before an appeals committee or an appeal has been filed against it, the Commissioner shall publish the fact of the filing of the appeal before the appeals committee or the appeal and its outcome in the manner in which the imposition of the monetary penalty is published.
(c)Notwithstanding the provisions of this section, the Commissioner shall not publish details that constitute information which a public authority is precluded from disclosing pursuant to section 9(a) of the Freedom of Information Law, 5758-1998, and the Commissioner may also refrain from publishing details pursuant to this section that constitute information which a public authority is not required to disclose pursuant to section 9(b) of that Law.

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Section E: Appeal before an Appeals Committee and Appeal

Appeal before an Appeals Committee§
18.

An employer or a service procurer may lodge an appeal before an appeals committee as referred to in section 19 against a decision of the Commissioner given in the employer's or service procurer's matter pursuant to section 7 or pursuant to section 15(c), within 14 days of the date on which it was served upon the employer or service procurer; the appeals committee may, for special reasons to be recorded, extend the said period by an additional period not exceeding 14 days.

Establishment of an Appeals Committee§
19.
(a)The Minister shall establish one or more appeals committees to hear appeals pursuant to section 18, and shall appoint their members, who shall be as follows:
(1)a lawyer with seniority of at least five years, who is a civil servant and has knowledge in the field of labour law, to be appointed with the consent of the Minister of Justice, and who shall be the chairperson;
(2)a representative of an employers' organisation that the Minister considers representative and having a stake in the matter;
(3)a representative of the workers' organisation representing the largest number of employees in the State.
(b)An appeals committee may be regional or national; notice of the establishment of the committee and its composition shall be published in Reshumot (Official Gazette).
(c)An appeals committee may sit in an incomplete composition, provided that all its members were duly summoned to the hearing and that the chairperson was at least present at the hearing.
(d)An appeals committee may hear and decide an appeal on the basis of contentions and evidence submitted to it in writing only; however, the committee may give the appellant an opportunity to argue the appellant's contentions orally and to present evidence before it, in such manner as the committee shall direct, for reasons to be recorded.
(e)The Minister, after consultation with the Minister of Justice and the organisations, may prescribe the rules of procedure of the appeals committee; where no such Regulations have been prescribed, the appeals committee may prescribe its own rules of procedure.
(f)The provisions of the Administrative Tribunals Law, except for the provisions of sections 5, 7, 16(a), 22, 26, 33, 36, 37, 45 and 46 of that Law, shall apply to an appeal and to an appeals committee, with the necessary modifications and with the following modification: in sections 11 and 12 of the Administrative Tribunals Law, instead of "Minister of Justice" there shall come "Minister of Industry, Trade and Employment".
Decision of the Appeals Committee§
20.

The appeals committee may cancel a payment demand, reduce the amount of the monetary penalty pursuant to the provisions of section 8, vary the payment demand, provided that the employer or the service procurer was given an opportunity to argue contentions regarding the variation, or reject the contentions of the employer or the service procurer and leave the payment demand in place.

Appeal§
21.
(a)A person who considers himself aggrieved by a decision of the appeals committee may appeal to the Regional Labour Court within 45 days from the day on which the decision was delivered to him; in hearing the appeal, the Regional Labour Court shall conduct judicial review of the decision of the appeals committee.
(b)Notwithstanding the provisions of section 18(a) of the Labour Court Law, the judge hearing an appeal under subsection (a) shall sit as a single judge.
(c)Notwithstanding the provisions of section 26 of the Labour Court Law, a judgment of a Regional Labour Court in an appeal under subsection (a) may be further appealed if leave therefor has been granted by the President of the National Labour Court or the President's deputy, or by a judge of the National Labour Court appointed for that purpose by the President.
(d)Notwithstanding the provisions of section 20(a)(3) of the Labour Court Law, where leave to appeal has been granted as referred to in subsection (c), the National Labour Court shall hear the appeal before three judges only.
Stay of Payment of Monetary Penalty or Its Refund by Reason of an Appeal before an Appeals Committee or an Appeal§
22.
(a)The filing of an appeal before an appeals committee or an appeal under this Section shall not operate to stay payment of the monetary penalty, unless the appeals committee, the Regional Labour Court or the National Labour Court, as the case may be, has directed otherwise.
(b)Where an appeal before an appeals committee or an appeal under this Section has been accepted in such manner that the monetary penalty has been cancelled or reduced after it has been paid, the amount paid, or any part thereof that has been reduced as aforesaid, shall be refunded together with shekel interest from the day of its payment until the day of its refund, and the provisions of the Interest and Linkage Adjudication Law shall apply to such interest, with the necessary modifications.

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Section F: Supervisory Powers

Supervisory Powers§
23.

A labour inspector who has been authorised or appointed to supervise compliance with a provision of a legislative enactment listed in the Second Schedule shall be empowered to supervise compliance with that provision for the purposes of the provisions of this Chapter, and for that purpose shall have all the powers vested in him under any law for the purpose of supervising compliance with that legislative provision.

Obstruction of a Labour Inspector§
24.
(a)A person who obstructs a labour inspector in the performance of his duties under this Chapter is liable to imprisonment for six months.
(b)A person who does not comply with a requirement of a labour inspector given pursuant to his authority under section 23 is liable to imprisonment for six months, and also to a fine as referred to in section 61(c) of the Penal Law, 5737-1977, for each day on which the offence continues after the day set by the inspector for compliance with the requirement.

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Chapter III: Civil Liability of a Service Procurer

Civil Liability of a Service Procurer§

25.
(a)An employer's duty, being a contractor, towards his employee under a provision of a legislative enactment listed in the Third Schedule and under the extension order provisions referred to in subsection (b), shall also apply to the service procurer in respect of the period during which the employee was employed in providing the service to the service procurer, provided that all of the following conditions are met:
(1)the service is provided to the service procurer by at least four employees; for this purpose it is immaterial whether the service is provided by employees employed by the same contractor or by different contractors;
(2)the service is provided over a period of at least six months, on a regular and continuous basis;
(3)notice has been delivered to the service procurer as detailed in sub-paragraph (a) or (b) below, and the duty has not been fulfilled by the contractor within 30 days from the date of delivery of such notice –
(a)the employee demanded, in writing, that the contractor fulfil the duty, and delivered to the service procurer written notice that he had made such demand to the contractor; a demand and notice as aforesaid may also be delivered by the representative workers' organisation at that workplace or by the workers' organisation of which the employee is a member, and in the absence of such an organisation – by an organisation engaged in the promotion of workers' rights, provided that the employee has consented thereto; an action filed by the employee against the contractor and the service procurer, or against the service procurer, on the ground of breach of the duty, shall not be regarded as a demand and notice under this paragraph;
(b)a labour inspector delivered to the service procurer written notice, including a notice under section 16(c), that he has information that the contractor has not fulfilled the duty towards his employee.
(b)The following are the extension order provisions referred to in subsection (a):
(1)extension order provisions relating to the payment of recreation allowance, reimbursement of travel expenses, pension, holiday pay and cost-of-living supplement;
(2)sectoral extension order provisions relating to wage components determined pursuant to section 28(b);
(3)extension order provisions on any other matter determined by the Minister, in consultation with the Minister of Finance and the organisations.
(c)Notwithstanding the definition of "the determining day" in the Wage Protection Law, the "determining day", for the purposes of payment of wages under this section by the service procurer, shall be the ninth day following the end of the period referred to in subsection (a)(3).

Measures to Be Taken by a Service Procurer§

26.
(a)A service procurer is obliged to take reasonable measures, in the circumstances of the matter, to prevent harm to the rights of the contractor's employees employed by him, and for that purpose must establish an effective method at the workplace for the delivery of notice of such harm, including notice under section 25(a)(3)(a), and for the investigation of the information in such notice, and must inform the contractor's employees of that method.
(b)Where a service procurer has not established a method for the delivery of notice as referred to in subsection (a), or has not informed the contractor's employees of that method, civil liability shall apply to the service procurer towards an employee of the contractor employed by him, in accordance with the provisions of section 25, even if the condition in subsection (a)(3) of that section is not met.

Defences§

27.

In a civil action for breach of a duty applying to a service procurer under the provisions of section 25, it shall be a good defence for the service procurer if he proves that one of the following applies:

(1)the breach of the duty was fully remedied from the day the cause of action arose;
(2)the service procurer relied in good faith on periodic audits conducted by a certified wage auditor, pursuant to the provisions of Chapter VI, and upon discovery of a breach of the duty did everything in his power to have the contractor remedy the breach, and where the breach was not remedied within a reasonable time – terminated the contract with the contractor on account of the breach of the duty, and the termination of the contract did not constitute conduct that was not in good faith;
(3)the service procurer relied in good faith on periodic audits conducted by a certified wage auditor, shortly before the time of the breach of the duty, pursuant to the provisions of Chapter VI, according to which the duty was being fulfilled by the contractor.

Terms in a Contract between a Contractor and a Service Procurer§

28.
(a)Where a service procurer has entered into a contract with a contractor in which any one of the conditions listed below is present, civil liability shall apply to the service procurer towards an employee of the contractor employed by him, pursuant to the provisions of section 25, even if the conditions in subsection (a)(1) and (2) of that section are not met in respect of the service, and the defences under section 27 shall not apply to him:
(1)the contract or the contractor's tender does not set out in writing the wage components that the contractor will pay to his employees, together with the minimum wage cost, the contractor's declaration of additional costs including profit, and the service procurer's undertaking to pay an amount not less than the minimum wage cost and the additional costs as aforesaid;
(2)the minimum wage cost referred to in paragraph (1) is less than the work-hour value determined pursuant to subsection (b);
(3)the service procurer actually pays the contractor an amount lower than the work-hour value determined pursuant to subsection (b), in respect of a work hour for an employee of the contractor.
(b)
(1)The Minister shall determine the wage components comprising the work-hour value, and also the work-hour value for an employee of a contractor according to different types of service, and may determine, inter alia, provisions relating to the taking into account of variable data, including seniority; the work-hour value as aforesaid shall reflect the cost of wages and working conditions to which an employee of a contractor is entitled by virtue of law and extension order;
(2)Where a component of the work-hour value has been updated by virtue of a provision of law or an extension order, the work-hour value shall be updated accordingly, on the date on which the update of the components takes effect, and the Minister shall publish the updated work-hour value within 30 days from that date;
(3)Regulations under this subsection shall be made in consultation with the Minister of Finance and in accordance with the recommendation of the organisations, insofar as it has been given by agreement between them, and if there is another representative workers' organisation in the sector concerned – the recommendation of the organisations shall also be given in consultation with it; however, in the absence of agreement between the organisations, such Regulations shall be made without their recommendation; Regulations as aforesaid require the approval of the Labour, Welfare and Health Committee of the Knesset.

Jurisdiction§

29.

The Regional Labour Court has exclusive jurisdiction to hear an action by an employee under this Chapter.

Accrual of Cause of Action§

30.

For the purposes of limitation provisions under any law, the day on which the contractor breached his duty shall be regarded as the day on which the cause of action against the service procurer accrued in respect of the breach of that duty under section 25.

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Chapter IV: Criminal Liability of a Service Procurer

Criminal Liability of a Service Procurer in respect of a Contract Entered into with a Contractor§

31.
(a)A service procurer shall not enter into a contract with a contractor in which any one of the conditions in paragraphs (1) or (2) of section 28(a) is present.
(b)A service procurer who enters into a contract with a contractor in which any one of the conditions in paragraphs (1) or (2) of section 28(a) is present, in contravention of the provisions of subsection (a), is liable to the fine prescribed in section 61(a)(1) of the Penal Law, 5737-1977, for each employee employed under that contract.
(c)The chief executive officer of a corporation is obliged to supervise and do everything possible to prevent an offence as referred to in subsection (b) being committed by the corporation 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.
(d)Where an offence under subsection (b) has been committed by a corporation, it shall be presumed that the chief executive officer of the corporation has breached his duty referred to in this section, unless he proves that he did everything possible to fulfil his duty.

Criminal Liability of the Chief Executive Officer of a Corporation that is a Service Procurer§

32.
(a)Where a provision of a legislative enactment listed in the Third Schedule has been breached by a contractor providing a service to a corporation that is a service procurer, and the provisions pursuant to section 16 have applied, the Commissioner may send the chief executive officer of the corporation 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 corporation'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 corporation 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 chief executive officer of the corporation 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 referred to in section 61(a)(1) of the Penal Law, 5737-1977.

Criminal Liability of a Service Procurer for the Prevention of Offences§

33.
(a)A service procurer is obliged to supervise and do everything possible to prevent the following offences being committed by a contractor towards an employee of the contractor employed by him; a person who breaches that duty is liable, subject to the provisions of subsection (c), to the fine prescribed alongside the offence in the following paragraphs:
(1)an offence under section 25b of the Wage Protection Law – the fine prescribed in section 61(a)(4) of the Penal Law, 5737-1977;
(2)an offence under section 33a(2) or 33d1 of the Youth Labour Law – the fine prescribed in section 61(a)(2) of the Penal Law, 5737-1977;
(3)an offence under section 28(a) of the Annual Leave Law, 5711-1951 – the fine prescribed in section 61(a)(1) of the Penal Law, 5737-1977;
(4)an offence under section 14 of the Minimum Wage Law – a fine as referred to in section 14 of the Minimum Wage Law;
(5)an offence under section 26(a) of the Work and Rest Hours Law, 5711-1951 – the fine prescribed in section 61(a)(1) of the Penal Law, 5737-1977.
(b)Where an offence as referred to in paragraphs (1) to (5) of subsection (a) has been committed by a contractor towards his employee who is employed by a service procurer, in connection with that employment, it shall be presumed that the service procurer has breached his duty referred to in subsection (a), unless he proves that one of the following applies:
(1)he did everything possible to fulfil his duty;
(2)he relied in good faith on periodic audits conducted by a certified wage auditor, shortly before the time the offence was committed, pursuant to the provisions of Chapter VI, according to which the contractor was fulfilling the duty the breach of which gave rise to the charge of an offence as referred to in subsection (b);
(3)the act constituting the offence was fully remedied from the day of the offence;
(4)the service procurer relied in good faith on periodic audits conducted by a certified wage auditor, pursuant to the provisions of Chapter VI, and upon discovery of a breach constituting an offence as referred to in paragraphs (1) to (5) of subsection (a), did everything in his power to have the contractor remedy the breach, and where the breach was not remedied within a reasonable time – terminated the contract with the contractor on account of the breach, and the termination of the contract did not constitute conduct that was not in good faith.
(c)The provisions of this section shall apply if a labour inspector has delivered to the service procurer notice as referred to in section 25(a)(3)(b), stating that the contractor has not fulfilled the duty the breach of which gave rise to the charge of an offence as referred to in subsection (b).

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