Manpower-contractor licence #1565
NETO operates under a manpower-contractor licence · checking the validity of the licence and the statutory definitions.
Read moreNotice to NETO WorkersNational Insurance arrangements · manpower company & workers' rights
A notice to NETO workers. As part of our arrangements with the National Insurance Institute, we have been asked to bring a few important points to your attention and to clarify them.
Licence #1565Manpower contractor
National InsuranceRecognised rights
Quick answer
Bareket I.T Ltd, trading as NETO, acts as a manpower company (licence #1565) and is therefore entitled to employ workers to carry out work for its clients (service recipients). Under the Classification of Insured Persons and Determination of Employers Order, NETO may employ service providers even where they do not meet every definition of an employer-employee relationship. For workers who do not fall under the manpower-worker definition · the National Insurance Institute may examine their status and decide whether they meet the criteria and are entitled to be insured as employees or as self-employed persons (mainly for benefits such as unemployment).
Quick navigation
- The points we were asked to clarify
- 1. Manpower workers
- 2. Service providers · Classification Order
- Who is insured as an employee
- 3. Those not referred to work by NETO
- A clarification from National Insurance
- Can rights be revoked from an insured person
- The solution for a client who needs an invoice
- Further regulations, orders and laws
Notice to NETO Workers · the points we were asked to clarify
A notice to NETO workers. As part of our arrangements with the National Insurance Institute, we were asked to bring the following important points to your attention and to clarify them:
This applies whether you are a worker employed through NETO, or a foreign employer engaging an Israeli worker through NETO under the Employer of Record model · in both cases NETO is the licensed legal employer that safeguards these rights.
- Bareket I.T Ltd, trading as NETO, acts as a manpower company (licence #1565), and is therefore entitled to employ workers to perform work for its clients (service recipients).
- Under the Classification of Insured Persons and Determination of Employers Order, NETO may employ service providers even where they do not meet every definition of an employer-employee relationship.
- For workers who do not meet the manpower-worker definition, the National Insurance Institute may examine their status and decide whether they meet the criteria and are entitled to be insured as employees or as self-employed persons (mainly for benefits such as unemployment).
1. Notice to NETO Workers · manpower
In brief
NETO (Bareket I.T Ltd, company no. 515486058) is a manpower company holding licence #1565 from the Ministry of Labour, active since 2016. Every NETO worker who meets the statutory definitions is regarded by National Insurance as an employee. The licence can be verified on the register of licensed manpower contractors.
Notice to NETO workers · manpower (Bareket I.T Ltd), regarding the obligations and rights of manpower workers.
Every NETO worker who meets the statutory definitions (manpower contractors) is regarded by National Insurance as an employee.
Bareket I.T Ltd, company no. 515486058, is a manpower company holding licence #1565 from the Ministry of Labour.
The company was established in 2016, obtained its manpower-contractor licence and has operated under that licence ever since.
Under the Manpower Contractors Law, the service recipient (the client) must verify that the company holds a valid licence. To check the licence, use the link below and enter the company name: Bareket I.T Ltd, or company no. 515486058.
Link to the register of licensed manpower contractors: https://data.labor.gov.il/ManpowerContractors.aspx
2. Notice to NETO Workers · service providers
In brief
Under the Classification of Insured Persons and Determination of Employers Order, whose aim is to widen the list of insured persons, there are cases in which a self-employed worker is insured as though they were an employee. The conditions are many, and they are set out in a separate article on self-employed vs salaried under National Insurance.
A notice to NETO service providers. Under the Classification of Insured Persons and Determination of Employers Order, whose main aim is to widen the list of insured persons that National Insurance must cover, the legislator decided that there are several cases in which a self-employed worker is insured as though they were an employee, provided that:
There are many conditions, so we expand on them in a separate article, who is considered self-employed and who is salaried under National Insurance (Classification of Insured Persons Order).
Who is entitled to be insured and regarded as an employee by National Insurance?
Sections 5-11 of the National Insurance Order on the Classification of Insured Persons and Determination of Employers
Without going into excessive detail: under the Classification of Insured Persons Order, section 11, a person who performed work and received pay after being referred to the work by NETO.
3. Notice to NETO Workers · those not referred to work by NETO and who are not manpower workers
In brief
For a person who is neither a manpower worker nor covered by the conditions of the Classification of Insured Persons Order · National Insurance examines whether they are insured as an employee, as a freelancer or as a self-employed person. The classification matters mainly for benefits (unemployment, maternity, injury) and their amount: for the self-employed it is based on an annual average, for a salaried employee on the last three months.
A notice to NETO workers who do not meet the manpower-worker definition and do not satisfy the conditions of the Classification of Insured Persons Order: the National Insurance Institute may examine their status and decide whether they meet the criteria and whether they are entitled to be insured as employees, as freelancers or as self-employed persons. This classification matters mainly for benefits such as unemployment, and also for calculating the amount of benefits such as maternity allowance and work-injury allowance, and so on.
For example:
The benefit for a self-employed insured person is calculated on the average annual income, whereas for a salaried employee it is calculated on the average wage over the last three months.
A clarification from the National Insurance Institute
For all workers who are not counted among manpower workers and are not covered by the Classification of Insured Persons Order:
Please note ❤️
The National Insurance Institute may examine the insured person's status and the payment of rights, benefits, allowances or any other payment due to the insured person under the National Insurance Law, in accordance with the individual data of each insured person, by the Institute's criteria and in accordance with the provisions of the law.
The Institute will examine whether the insured person is defined as self-employed / salaried, or as a worker who does not meet either of those definitions (manpower workers, Classification of Insured Persons Order).
May the National Insurance Institute revoke rights from an insured person?
For the avoidance of doubt: where the National Insurance Institute decides to deny a specific insured person entitlement to rights, a benefit or an allowance, this will be done after an individual examination of that insured person; in any event, the reporting made for them cannot be invalidated.
Unless it turns out that the insured person worked in their occupation as a self-employed person, and no employer-employee relationship exists (under the tests laid down in law and case law) between them and NETO, or between them and the actual employer (the client · service recipient), even where the Classification of Insured Persons Order does not apply to the worker · then the Institute may change their classification from salaried employee to self-employed, all subject to a hearing held in the matter and to the provisions of the agreement and the law.
What is the solution for a client who needs an invoice for the work?
In brief
Everything must start with the client. After an approved engagement agreement and a work order, NETO places the worker, employs them and handles the entire employer-employee relationship. The client receives an invoice from NETO and the worker receives a payslip.
Quite simply, you use the NETO system · an elegant, lawful solution.
You recruit and employ workers and pay them through NETO, easily and at the click of a button.
Please note · everything must start with the client; we come into the picture only after an approved engagement agreement and a work order.
- The service recipient needs to order a worker from NETO.
- We place the worker in the job, employ them and handle the entire employer-employee relationship.
The client receives an invoice from NETO, and you are paid by payslip
The client (service recipient) receives an invoice from NETO, while the worker receives a payslip.
NETO takes care to uphold all workers' rights and employers' obligations.
On the NETO site you will find a hub of further regulations, orders and laws
- Labour law in a nutshell
- Workers' rights
- A compendium of workers' rights and employers' obligations
- How to issue an invoice without opening a business
- Hours of Work and Rest Law, 1951
- Severance Pay Law, 1963
- How the primary employer is determined
- Wage Protection Law, 1958
- How self-employed and salaried are defined under National Insurance
- Freelancer rights
- Tax coordination for salaried employees
- Equal Rights for Persons with Disabilities Regulations
- Basic Law: Freedom of Occupation
- Further blog articles and posts can be found here
Have a question? Visit the frequently asked questions or the employer FAQ.
To get in touch: 08-976-1874.
Work like a freelancer, against an invoice
NETO is an automated employment system operating under manpower-contractor licence #1565 · NETO takes care to uphold all workers' rights and employers' obligations, without cutting corners.
Disclaimer: The information on this page is for general enrichment only and should not be regarded as legal advice. If needed, consult a lawyer.
Related pages
Self-employed vs salaried under National Insurance
The Classification of Insured Persons and Determination of Employers Order · who is considered self-employed and who is salaried.
Read more
Workers' rights
All of a worker's rights in one place · NETO takes care to uphold every right.
Read more
