ISRAEL - Ministry of Interior Conducting On-Site Worksite Inspections
- Israel
- 01/05/2010
Beginning this week, inspectors with the Israeli Ministry of Interior (MOI) are expected to conduct both announced and surprise worksite inspections of local and multinational companies. An intense round of random, announced and surprise inspections is expected to occur during the first quarter of 2010. Yesterday, January 3, 2010, the MOI began notifying specific Israeli companies and their immigration advisors of pending on-site inspections of premises and of company immigration compliance files. Although there has been no official announcement by the MOI, it is likely that MOI inspectors are auditing Israeli companies primarily to ensure full compliance with Israeli prevailing wage laws for B-1 “Foreign Expert” workers, which is used by most multinational companies for seconding and transferring skilled or specialized-knowledge workers, intra-company managers and similarly situated foreign workers.
Inspectors will be auditing Israeli companies on maintenance of in-house files relating to the employment of Foreign Experts and will also be confirming that all Foreign Expert workers are paid at least the minimum monthly Israeli prevailing wage of 16,000 NIS (approximately US$4,220). Under MOI regulations, Israeli employers are required to maintain public access files containing the following information on behalf of each foreign worker:
- Confirmation that the worker has suitable accommodation in Israel;
- Proof that the worker is paid the mandated monthly prevailing wage;
- Confirmation that the worker has adequate international medical insurance; and
- A copy of either the worker’s contract of employment or assignment letter (if the worker is a seconded or intra-company transferee), stating the salary, position title and nature of the assignment in Israel.
Although this inspection is to verify that Foreign Experts are being paid the minimum prevailing wage, inspectors may also request other documents, such as each foreign worker’s medical insurance policy and proof of adequate housing (e.g., individual leases or proof of corporate housing). Failure to pass inspection may lead to civil and criminal actions against Israeli companies and individual host company managers, as well as to denial of future applications by non-compliant companies for work visas and renewals.
BAL Comment
Companies with assignees in Israel should immediately contact Israeli host company HR representatives to review the possibility of surprise inspections by the MOI. Israeli HR representatives should also ensure that the company’s public access files have the above-required documentation for each foreign worker, particularly for those workers in the Foreign Expert category.
