Increased Enforcement of Labour LawsWhat the law requires of employers · and how to stay inside it without the headache

Q: What is a financial sanction under the law?

A financial sanction is an administrative penalty that inspectors of the Ministry of Labour may impose on an employer for breaching the labour laws listed in the schedules to the law, without the need for criminal proceedings. The amount of the sanction and the mechanism are set out in the law and updated from time to time. For exact details, review the official text on Nevo and on the Ministry of Labour website.

The Increased Enforcement of Labour Laws Law, 5772-2011, tightened enforcement on employers and service recipients · financial sanctions, personal liability, and the service recipient's liability toward a contractor's workers. If you are a foreign company hiring an Israeli worker, that liability lands on you as the ordering employer · unless you employ through NETO, licensed manpower contractor 1565. NETO becomes the legal employer that pays the full wage components and issues a payslip · and you receive an invoice and stay inside the law.

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Manpower licence 1565 Ministry of Labour supervision Operating since 2016

Unofficial English translations · the Hebrew statute is legally authoritativeThe verbatim regulation text below is kept in the original Hebrew and cross-checked against Nevo; the English beside it is our own unofficial translation, provided for understanding only and with no legal force. In any dispute, only the Hebrew text published in Reshumot (Israel's official gazette) governs.

Regulations · Nevo The law · Nevo

AI summary · Increased Enforcement of Labour LawsClick to read the page summary

The Increased Enforcement of Labour Laws Law, 5772-2011, tightens enforcement on employers and service recipients. It works through three tracks: administrative financial sanctions that inspectors impose for breaches of labour laws, personal liability of directors and officers, and the service recipient's liability toward a contractor's workers in the cleaning, security and catering fields. Under it, the 5783-2023 wage-component regulations (from 1 January 2024) were enacted, defining how the hourly work value is calculated in those sectors. For a foreign company hiring in Israel, the simplest way to carry all of this: employ the worker through NETO, licensed manpower contractor 1565 · NETO is the employer that pays the full wage components and issues a payslip, and you receive an invoice.

The law 5772-2011 · Nevo Regulations 5783-2023 · Nevo Ministry of Labour · gov.il

Three enforcement tracks · financial sanction, officer liability, service-recipient liability.
Service recipient · exposed to a contractor's workers in cleaning, security and catering.
2023 regulations · define the hourly work value and wage components in these sectors.
NETO 1565 · licensed manpower contractor, the employer that pays everything.
5% fee · of the worker cost · payslip to the worker, invoice to you.
The information is general only · not legal advice.

Quick navigation

In short
What the law requires · three tracks
The service recipient's liability
The 2023 wage-component regulations
How to stay inside the law
How NETO protects you
The regulation text · in full
Frequently asked questions
In summary

In short

This page explains the Increased Enforcement of Labour Laws Law, 5772-2011 ("החוק להגברת האכיפה של דיני העבודה, התשע״ב-2011") · what it requires of employers and service recipients, and the labour law that flows from it, including the 5783-2023 wage-component regulations that came into force on 1 January 2024. At the end · how employing through a licensed manpower agency moves the burden of calculation and payment to a supervised entity.

Financial sanction · an inspector may impose an administrative fine for a breach of labour laws · without criminal proceedings.
Officer liability · a supervision duty on managers, with personal exposure.
Service-recipient liability · exposure to a contractor's workers in cleaning, security and catering.
NETO 1565 · the worker is employed through NETO · the full wage components are paid, and you receive an invoice.

What the law requires

The Increased Enforcement Law · three enforcement tracks

The Increased Enforcement of Labour Laws Law, 5772-2011, was designed to strengthen the enforcement of labour laws in Israel and to better protect employee rights. It sets out three complementary tools · alongside ordinary inspection.

Administrative financial sanction

Ministry of Labour inspectors may impose a financial sanction on an employer for a breach of the labour laws listed in the schedules to the law · without the need for criminal proceedings. The amount is set in the law and updated from time to time.

Officer liability

Directors and senior officers bear a duty to supervise and do everything possible to prevent breaches. A breach may create personal liability · including at the administrative and criminal level, subject to the conditions in the law.

Service-recipient liability

A recipient of services from a contractor in the cleaning, security and catering fields may bear civil · and under certain conditions even criminal · liability toward the contractor's workers for breaches of wage laws and rights.

The law also introduced the institution of the certified wage examiner · a party that carries out periodic checks of wage payments, and relying on it can reduce the service recipient's exposure. The binding text is the one published in Reshumot · the full law on Nevo.

Who is exposed

The service recipient's liability · when you employ through a contractor

One of the law's central innovations is that it does not stop at the contractor. The service recipient · the body receiving the service · may find itself liable toward the contractor's workers. This is especially true in three sectors.

Security & guarding

Contractor workers in the security and guarding field · one of the sectors in which the law imposes heightened liability on the service recipient.

Cleaning

Contractor workers in the cleaning field · including in public bodies under the law on employment through service contractors.

Catering

Contractor workers in the catering field · another sector included in the liability regime and the regulations that flow from it.

Why this matters for a foreign employer. When an overseas company engages an Israeli worker through a local contractor or agency, this law can place the compliance burden on the ordering party. Using an Employer of Record / licensed manpower contractor such as NETO makes NETO the legal employer that carries the liability, shielding the client · you receive a clean invoice instead.

How to reduce exposure

Before engagement · verify the contractor is licensed and pays its workers the full wage components, and set a contractual duty to present payment documents (regulation 8).

During engagement · conduct at least quarterly reconciliation, and consider relying on a certified wage examiner.

The simple solution · employ the worker through a licensed manpower contractor that itself carries all the employer duties · and issues you an invoice.

The regulations · 5783-2023

Wage-component regulations · how the hourly work value is calculated

Under section 28(b) of the law, the regulations (Wage Components Making Up the Hourly Work Value and the Hourly Work Value of a Contractor Worker), 5783-2023 ("תקנות להגברת האכיפה של דיני העבודה (רכיבי השכר המרכיבים את ערך שעת עבודה וערך שעת עבודה לעובד קבלן), תשפ״ג-2023"), were enacted. They set out how the hourly work value is calculated for contractor workers in the security and guarding, cleaning and catering fields. They came into force on 1 January 2024.

Basic hourly work value

The regulations define the wage components making up the basic hourly work value and how they are calculated · separately for each of the three sectors (First Schedule, regulation 3).

Overtime and rest

Overtime pay and pay for work during the weekly rest are calculated under sections 16 and 17 of the Hours of Work and Rest Law · and added to the hourly work value (regulation 4).

Event-dependent component

A qualifying event (such as sick pay, holiday pay or recreation pay) adds a wage component under the law or the applicable extension order · with quarterly reconciliation between the service recipient and the contractor (regulation 7).

The exact values and components vary by sector, seniority and scope of position, and are updated in a calculator published by the Ministry of Labour (regulation 11). The regulations apply to service recipients and contractors in these sectors · and do not replace other duties under the law. The binding text · on Nevo. The full tables (First, Second and Third Schedules), including the catering field, appear in full in the official text on Nevo.

The quiet way

Don't want to puzzle over every wage component?

Employ the worker through NETO · licensed manpower contractor 1565. We calculate and pay the full wage components, issue the worker a lawful payslip, and you receive an invoice. Fee 5% of the worker cost.

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Step by step

How an employer stays inside the law

Four practical steps for meeting the requirements of the law and the regulations · from mapping to employment through a supervised entity.

Map the wage components

Check which minimum wage components apply to the workers under the law and the extension orders · and in the security, cleaning and catering sectors under the 5783-2023 wage-component regulations.

Update payment procedures

Update the calculation of the hourly work value, overtime, weekly rest and holidays in line with the Wage Protection Law and the regulations · including quarterly reconciliation with the contractor.

Control and documentation

Require the contractor to provide documents proving payment of the wage components (regulation 8), and consider relying on a certified wage examiner to reduce exposure to service-recipient liability.

Employ through a licensed contractor

Employ the worker through NETO · licensed manpower contractor 1565. NETO is the employer that calculates and pays the full wage components and issues a payslip · and you receive an invoice.

The NETO solution

How NETO keeps you inside the law

Employing a worker against an invoice is one of the solutions NETO offers employers. Instead of puzzling over every section of the law, the labour law and the regulations · the worker is employed through NETO, and we are good at it.

NETO is the employer

The worker receives a lawful payslip from NETO · NETO calculates and pays the full wage components, and you receive an invoice for the work. No employer-employee relationship with you.

Licence and supervision

NETO is a licensed manpower contractor, licence 1565, operating under the supervision of the Ministry of Labour under the law on employment through manpower contractors · the burden of calculation and payment moves to a professional, supervised entity.

Simple and affordable

It is legal, simple and affordable · a 5% fee of the worker cost. Far simpler than a casual transaction or direct employment · you can also employ a worker by output.

1565Manpower contractor licence

5%Fee of the worker cost

2016Operating since

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For those who want the detail

The regulation text · verbatim, in the original Hebrew, with English

Below is the text of the Increased Enforcement of Labour Laws Regulations (Wage Components Making Up the Hourly Work Value and the Hourly Work Value of a Contractor Worker), 5783-2023 · for convenience. Each block keeps the binding Hebrew original and adds an unofficial English translation. The binding text is the one published in Reshumot · text updated to 1 January 2024 on Nevo. Open only if you want.

Unofficial translationBy virtue of my authority under section 28(b) of the Increased Enforcement of Labour Laws Law, 5772-2011 (the "law"), in consultation with the Minister of Finance and with the approval of the Knesset Labour and Welfare Committee, I hereby make these regulations.Binding text: the Hebrew original as published in Reshumot / Nevo.

בתוקף סמכותי לפי סעיף 28(ב) לחוק להגברת האכיפה של דיני העבודה, התשע״ב-2011 (להלן · החוק), בהתייעצות עם שר האוצר ובאישור ועדת העבודה והרווחה של הכנסת, אני מתקין תקנות אלה.

1. Definitions

Unofficial translation"Qualifying event" · an event following which a worker is entitled, under the law or an extension order as the case may be, to payment of a wage component. "Qualifying body" · the state service and a public body as defined in the law on employment through service contractors in the security and cleaning fields in public bodies. "Basic hourly work value" · as meant in regulation 3, as updated under regulation 5. "Extension order" · as meant in section 25 of the Collective Agreements Law. "Event-dependent wage component" · in security and guarding, cleaning and catering · sick pay, holiday pay, travel-expense reimbursement and provident-fund payment in respect of them, provident-fund contributions during maternity/parental leave or pregnancy protection, reserve duty, election day, memorial day, event leave, holiday gifts · and in a public body also an excellence grant; in catering also a top-up of severance pay. The definitions also incorporate various extension orders (shortened work week, cleaning sector, security sector, framework agreement, recreation, pension and travel) and "provident fund" as defined in the Supervision of Financial Services (Provident Funds) Law, 5765-2005.Binding text: the Hebrew original as published in Reshumot / Nevo.

״אירוע מזכה״ · אירוע שבעקבותיו זכאי עובד לפי החוק או צו הרחבה, לפי העניין, לתשלום רכיב שכר.

״גוף מזכה״ · שירות המדינה וכן גוף ציבורי כהגדרתו בחוק העסקת עובדים על ידי קבלני שירות בתחומי השמירה והניקיון בגופים ציבוריים.

״ערך שעת עבודה בסיסי״ · כמשמעותו בתקנה 3, כפי שהוא מעודכן לפי תקנה 5. ״צו הרחבה״ · כמשמעותו בסעיף 25 לחוק הסכמים קיבוציים.

״רכיב שכר תלוי אירוע מזכה״ · בשמירה ואבטחה, בניקיון ובהסעדה · דמי מחלה, דמי חגים, החזר הוצאות נסיעה ותשלום לקופת גמל בעדן, הפרשות לקופת גמל בתקופת לידה והורות או שמירת היריון, מילואים, יום בחירות, יום זיכרון, חופשות לרגל אירועים, שי לחג · ובגוף ציבורי גם מענק מצוינות; בהסעדה גם השלמת פיצויי פיטורים.

2. Hourly work value

Unofficial translationFor the purpose of calculating the minimum wage cost as meant in section 28 of the law, the hourly work value shall be · the basic hourly work value under regulation 3 as updated under regulation 5, plus the components under regulation 7, and including the calculation under regulation 4 for work in overtime or during the weekly rest · all where there is entitlement to them under the law.Binding text: the Hebrew original as published in Reshumot / Nevo.

לעניין חישוב עלות השכר המינימלית כמשמעותה בסעיף 28 לחוק, יהיה ערך שעת עבודה · ערך שעת העבודה הבסיסי לפי תקנה 3 כפי שהוא מעודכן לפי תקנה 5, ובתוספת הרכיבים לפי תקנה 7 וכולל חישוב לפי תקנה 4 בעד עבודה בשעות נוספות או במנוחה השבועית, והכול אם יש זכאות להם לפי הדין.

3. Wage components making up the basic hourly work value

Unofficial translation(a) The wage components making up the basic hourly work value and the way they are calculated shall be · for the security and guarding field as set out in Part A of the First Schedule, for the cleaning field as set out in Part B, and for the catering field as set out in Part C. (b) Notwithstanding the above, and without derogating from regulation 7, a service recipient and a contractor may agree between them in advance and in writing to calculate the basic hourly work value as also including event-dependent components · in which case the corresponding parts of the Second Schedule apply.Binding text: the Hebrew original as published in Reshumot / Nevo.

(א) רכיבי השכר המרכיבים את ערך שעת העבודה הבסיסי ואופן חישובם יהיו · לתחום השמירה והאבטחה כמפורט בחלק א׳ לתוספת הראשונה, לתחום הניקיון כמפורט בחלק ב׳, ולתחום ההסעדה כמפורט בחלק ג׳.

(ב) על אף האמור, ובלי לגרוע מתקנה 7, רשאים מזמין שירות וקבלן להסכים ביניהם מראש ובכתב לחשב את ערך שעת העבודה הבסיסי ככולל גם רכיבים התלויים באירוע מזכה · ואז יחולו החלקים המקבילים בתוספת השנייה.

4. Overtime pay, weekly-rest pay and their addition to the hourly work value

Unofficial translation(a) If the service recipient and the contractor agreed in advance and in writing on the scope of overtime · an overtime-pay component is calculated under this regulation. (b) If they agreed on employment during the weekly rest · a weekly-rest-pay component is calculated. (c) The overtime-pay component shall not be less than a calculation at the rate in section 16 of the Hours of Work and Rest Law; the weekly-rest-pay component shall not be less than a calculation at the rate in section 17. (d) The proportional National Insurance component is added. (e) In security and cleaning, a provident-fund pension-contribution component is added for overtime or weekly rest, per the relevant extension order. (f) In a qualifying body, an excellence grant of 1% is added. (g) The component, divided by 182 for a full-time position (and for a part-time position · by the entitlement hours in that month), is added to the basic hourly value. (h) The provisions also apply to overtime or weekly rest performed per work needs, subject to the agreements.Binding text: the Hebrew original as published in Reshumot / Nevo.

(א) הסכימו מזמין השירות והקבלן מראש ובכתב על היקף שעות נוספות · יחושב רכיב גמול שעות נוספות לפי תקנה זו. (ב) הסכימו על העסקה במנוחה השבועית · יחושב רכיב גמול עבודה במנוחה השבועית.

(ג) רכיב גמול עבודה בשעות הנוספות לא יפחת מחישוב לפי התעריף בסעיף 16 לחוק שעות עבודה ומנוחה; רכיב גמול עבודה במנוחה השבועית לא יפחת מחישוב לפי התעריף בסעיף 17 לחוק.

(ד) ייווסף רכיב דמי הביטוח הלאומי היחסי. (ה) בשמירה ובניקיון ייווסף רכיב הפרשה לקופת גמל לקצבה בעד שעות נוספות או מנוחה שבועית, לפי צו ההרחבה הרלוונטי. (ו) בגוף מזכה ייווסף מענק מצוינות בשיעור 1%.

(ז) הרכיב, כשהוא מחולק ל-182 בעד משרה מלאה (ולמשרה חלקית · לפי שעות הזכאות באותו חודש), ייווסף לערך השעה הבסיסי. (ח) ההוראות חלות גם על שעות נוספות או מנוחה שבועית שבוצעו לפי צורכי העבודה, בכפוף להסכמות.

5. Calculation by seniority · and 6. by scope of position

Unofficial translation5. If the value of a wage component varies by the worker's seniority with the contractor or at the same workplace · the seniority is calculated by the right granted under a law or extension order, and the basic hourly work value and the additional components are updated by the appropriate seniority. 6. If the value of a wage component varies by the scope of the position · the basic hourly work value and the additional components are updated by the appropriate scope of position.Binding text: the Hebrew original as published in Reshumot / Nevo.

5. אם ערכו של רכיב שכר משתנה לפי ותק של העובד אצל הקבלן או באותו מקום עבודה · חישוב הוותק יהיה לפי הזכות המוקנית מכוח חוק או צו הרחבה, וערך שעת העבודה הבסיסי והרכיבים הנוספים יעודכנו לפי הוותק המתאים.

6. אם ערכו של רכיב שכר משתנה לפי היקף המשרה · ערך שעת העבודה הבסיסי והרכיבים הנוספים יעודכנו לפי היקף המשרה המתאים.

7. Event-dependent wage component

Unofficial translation(a) Without derogating from regulation 2 · if a qualifying event occurred in a given month and the contractor notified the recipient (in the manner set in the contract or by written notice) that the worker is entitled to the pay · the value of an event-dependent wage component under a law or extension order, per the calculation in the Third Schedule, is added to the basic hourly work value for that month. (b) The component includes the contributions the employer must make on it under any law. (c) The service recipient and the contractor shall reconcile, at least once a quarter, differences between the amounts paid and those actually due for an event-dependent wage component.Binding text: the Hebrew original as published in Reshumot / Nevo.

(א) בלי לגרוע מתקנה 2 · אירע אירוע מזכה בחודש מסוים והקבלן הודיע למזמין ("בדרך שנקבעה בחוזה או בהודעה בכתב") כי העובד זכאי לגמול · ייווסף לערך שעת העבודה הבסיסי בעד אותו חודש ערך רכיב שכר תלוי אירוע מזכה לפי חוק או צו הרחבה, בהתאם לחישוב בתוספת השלישית.

(ב) הרכיב יכלול את ההפרשות שחייב המעסיק להפריש עליו לפי כל דין. (ג) מזמין השירות והקבלן יערכו התחשבנות, אחת לרבעון לפחות, על הפרשים בין הסכומים ששולמו לבין המגיעים בפועל בעד רכיב שכר תלוי אירוע מזכה.

8. Contract terms between recipient and contractor · and 9. base-wage component

Unofficial translation8. As to the actual payment of the hourly work value as meant in section 28(a)(3) of the law · nothing in these regulations derogates from a service recipient's right to require the contractor, within the contract, to present documents proving payment of the wage components to its workers. 9. If a base wage higher than that set in the schedule was agreed in writing and in advance, or that the workers will hold training entitling them to a higher base wage · all the wage components in regulation 3 are updated to match the agreed base wage.Binding text: the Hebrew original as published in Reshumot / Nevo.

8. לעניין תשלום בפועל של ערך שעת עבודה כמשמעותו בסעיף 28(א)(3) לחוק · אין בתקנות אלה כדי לגרוע מזכותו של מזמין שירות לדרוש מהקבלן, במסגרת החוזה, להציג מסמכים המעידים על תשלום רכיבי השכר לעובדיו.

9. נקבע בהתקשרות בכתב ומראש שכר יסוד גבוה מהקבוע בתוספת, או שהעובדים יהיו בעלי הכשרה המזכה בשכר יסוד גבוה · יעודכנו כל רכיבי השכר כאמור בתקנה 3 בהתאמה לשכר היסוד שהוסכם.

10. Reconciliation between recipient and contractor during the engagement

Unofficial translationWithout derogating from regulation 2 · the service recipient and the contractor shall reconcile, at least once a quarter, for each worker, all of the following: (1) wage components affected by seniority · updated under regulation 5; (2) wage components affected by the actual length of the work day under the shortened-work-week extension order · adjusted to the agreed service hours; (3) the global amount due for overtime · if a security and guarding worker agreed to global payment under the extension order, subject to the agreements; (4) wage differences between what was paid and what is actually due for overtime pay or weekly-rest pay under regulation 4, per actual performance; (5) National Insurance on meal subsidy and any additional wage component paid to the worker under law or a collective agreement.Binding text: the Hebrew original as published in Reshumot / Nevo.

בלי לגרוע מתקנה 2 · מזמין השירות והקבלן יערכו התחשבנות, אחת לרבעון לפחות, לגבי כל עובד, בכל אלה:

רכיבי שכר המושפעים מוותק · יעודכנו לפי תקנה 5.
רכיבי שכר המושפעים מאורך יום העבודה בפועל לפי צו הרחבה בדבר שבוע עבודה מקוצר · יותאמו לשעות השירות שסוכמו.
הסכום הגלובלי המגיע בעד שעות נוספות · אם עובד שמירה ואבטחה הסכים לתשלום גלובלי לפי צו ההרחבה, בכפוף להסכמות.
הפרשי שכר בין ששולם לבין המגיע בפועל בעד גמול שעות נוספות או מנוחה שבועית לפי תקנה 4, בהתאם לביצוע בפועל.
דמי ביטוח לאומי על סבסוד ארוחות וכל רכיב שכר נוסף המשתלם לעובד לפי דין או הסכם קיבוצי.

11. Calculator updates · 12. preservation of rights and laws · 13. commencement and application

Unofficial translation11. The calculation of the hourly work value under these regulations shall be published in a calculator on the Ministry of Labour website; if a component is updated under a law or extension order · the hourly value is updated and published in the calculator under section 28(b) of the law. 12. (a) Nothing in these regulations derogates from any right given to a worker under any law, collective agreement, extension order, agreement or practice. (b) Nothing in them derogates from other duties of the service recipient and the contractor under law, including under section 28 of the law. 13. (a) These regulations commence on 20 Tevet 5784 (1 January 2024), and apply to an engagement first made on the commencement day or thereafter. (b) They also apply to an earlier engagement · from the date of its renewal or extension, or from 1 January 2025, whichever is earlier.Binding text: the Hebrew original as published in Reshumot / Nevo.

11. תחשיב ערך שעת העבודה לפי תקנות אלה יפורסם במחשבון באתר האינטרנט של משרד העבודה; עודכן רכיב מכוח חוק או צו הרחבה · יעודכן ערך השעה ויפורסם במחשבון לפי סעיף 28(ב) לחוק.

12. (א) אין בתקנות אלה כדי לגרוע מכל זכות הנתונה לעובד לפי כל דין, הסכם קיבוצי, צו הרחבה, הסכם או נוהג. (ב) אין בהן כדי לגרוע מחובות אחרות של מזמין השירות והקבלן לפי דין, ובכלל זה לפי סעיף 28 לחוק.

13. (א) תחילתן של תקנות אלה ביום כ׳ בטבת התשפ״ד (1 בינואר 2024), והן יחולו על התקשרות שתיערך לראשונה ביום התחילה או לאחריו. (ב) הן יחולו גם על התקשרות קודמת · ממועד חידושה או הארכתה, או מיום 1 בינואר 2025, לפי המוקדם.

The First Schedule (regulation 3(a)), the Second Schedule (regulation 3(b)) and the Third Schedule (regulation 7) · including the catering field · appear in full in the official text on Nevo.

Legal disclaimer. The information on this page, including the description of the Increased Enforcement of Labour Laws Law, 5772-2011, and the regulation text quoted above · is general information only and does not constitute legal advice or a substitute for it. The Hebrew text is kept in the original and cross-checked against the version on Nevo; the English is an unofficial translation and the binding text is the one published in Reshumot · amendments and updates may change from time to time. Consult a lawyer regarding application to the specific case. Official sources · the law on Nevo · Ministry of Labour and Welfare.

Frequently asked questions

Increased Enforcement · questions and answers

What is the Increased Enforcement of Labour Laws Law?

The Increased Enforcement of Labour Laws Law, 5772-2011, was designed to strengthen the enforcement of labour laws in Israel. It creates three main enforcement tracks · administrative financial sanctions that inspectors impose for breaches of the labour laws listed in the schedules; heightened and criminal liability of directors and officers; and civil and criminal liability of a service recipient toward a contractor's workers in the cleaning, security and catering fields. The binding text is published in Reshumot and on Nevo.

Who bears the service recipient's liability?

A service recipient that receives services from a contractor in the cleaning, security and guarding, or catering fields may bear civil, and under certain conditions even criminal, liability toward the contractor's workers for breaches of wage laws and rights. The law allows this exposure to be reduced · among other ways by taking steps to correct the breach and by relying on periodic checks by a certified wage examiner. Review the text of the law and consult a professional.

What do the 5783-2023 wage-component regulations set out?

The regulations (Wage Components Making Up the Hourly Work Value and the Hourly Work Value of a Contractor Worker), 5783-2023, were enacted under section 28(b) of the law. They define how the basic hourly work value is calculated in the security and guarding, cleaning and catering fields, which components are included, and how overtime pay, weekly-rest pay and event-dependent components are added. They came into force on 1 January 2024.

What is a financial sanction under the law?

A financial sanction is an administrative penalty that Ministry of Labour inspectors may impose on an employer for a breach of the labour laws listed in the schedules to the law, without the need for criminal proceedings. The amount and the mechanism are set in the law and updated from time to time. For exact details, review the official text on Nevo and on the Ministry of Labour website.

How does employing through NETO help with compliance?

NETO is a licensed manpower contractor, licence 1565, operating under the supervision of the Ministry of Labour. When you employ a worker through NETO, NETO is the employer for labour-law purposes · it calculates and pays the full wage components, issues the worker a lawful payslip, and issues the ordering party an invoice. The payment and calculation procedures thus move to a professional, supervised entity. This is not a substitute for legal advice on the specific case.

How much does it cost to employ through NETO?

NETO's fee is 5% of the worker cost (derived from the invoice the client pays, before VAT). Beyond that you pay the worker's wage cost including the social components. The process is simpler and cheaper than direct employment or a casual transaction, and includes issuing a payslip to the worker and an invoice to the ordering party.

Where can the official text of the law and the regulations be found?

The Increased Enforcement of Labour Laws Law, 5772-2011, appears on Nevo. The 5783-2023 wage-component regulations appear on Nevo in a text updated to 1 January 2024. Further general information is published on the Ministry of Labour and Welfare website on gov.il. The binding text is the one published in Reshumot.

Do the regulations apply only to security, cleaning and catering?

The 5783-2023 wage-component regulations deal with calculating the hourly work value for contractor workers in the three sectors · security and guarding, cleaning and catering · in which the service-recipient liability regime exists. However, the other labour laws, and the law's enforcement tracks (financial sanction and officer liability), apply to employers more broadly. Check the concrete application to each case.

In summary

The Increased Enforcement of Labour Laws Law, 5772-2011, tightens enforcement on employers and service recipients · financial sanctions, personal liability of officers and the service recipient's liability toward a contractor's workers in cleaning, security and catering. Under it, the 5783-2023 wage-component regulations were enacted, defining how the hourly work value is calculated in these sectors, in force from 1 January 2024. The simple way to carry all of this · employ the worker through NETO, an automated employment system, a licensed manpower contractor 1565 operating under the supervision of the Ministry of Labour since 2016.

Three enforcement tracks · financial sanction, officer liability, service-recipient liability.
2023 regulations · calculating the hourly work value in security, cleaning and catering (from 1 January 2024).
NETO 1565 · the employer that pays the full wage components · payslip to the worker, invoice to you.
5% fee · of the worker cost · simpler and cheaper than direct employment or a casual transaction.

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Everything you need to employ lawfully · manpower licensing, contractor-worker rights and employment against an invoice.

Notice: the information in NETO labour law is for general enrichment only and should not be treated as legal advice. Consult a lawyer, tax adviser, accountant or other professional as needed. The Hebrew regulation text is kept in the original and cross-checked against Nevo; the binding text is the one published in Reshumot.

The quiet way

Employ a worker through NETO · and rest easy

No employer-employee relationship with you · NETO pays the full wage components in line with the law and the regulations, issues the worker a payslip, and you receive an invoice. Fee 5% of the worker cost.

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Info & policies

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Increased Enforcement of Labour LawsWhat the law requires of employers · and how to stay inside it without the headache

In short

The Increased Enforcement Law · three enforcement tracks

Administrative financial sanction

Officer liability

Service-recipient liability

The service recipient's liability · when you employ through a contractor

Security & guarding

Cleaning

Catering

How to reduce exposure

Wage-component regulations · how the hourly work value is calculated

Basic hourly work value

Overtime and rest

Event-dependent component

Don't want to puzzle over every wage component?

How an employer stays inside the law

Map the wage components

Update payment procedures

Control and documentation

Employ through a licensed contractor

How NETO keeps you inside the law

NETO is the employer

Licence and supervision

Simple and affordable

The regulation text · verbatim, in the original Hebrew, with English

Increased Enforcement · questions and answers

In summary

Guides you may find useful

Employ a worker through NETO · and rest easy

Why this page exists

Accessibility

Manpower Contractor License

Report a problem or leave feedback

Welcome to NETO

Get in touch

Info & policies

Book a demo

Increased Enforcement of Labour LawsWhat the law requires of employers · and how to stay inside it without the headache

In short

The Increased Enforcement Law · three enforcement tracks

Administrative financial sanction

Officer liability

Service-recipient liability

The service recipient's liability · when you employ through a contractor

Security & guarding

Cleaning

Catering

How to reduce exposure

Wage-component regulations · how the hourly work value is calculated

Basic hourly work value

Overtime and rest

Event-dependent component

Don't want to puzzle over every wage component?

How an employer stays inside the law

Map the wage components

Update payment procedures

Control and documentation

Employ through a licensed contractor

How NETO keeps you inside the law

NETO is the employer

Licence and supervision

Simple and affordable

The regulation text · verbatim, in the original Hebrew, with English

Increased Enforcement · questions and answers

In summary

Guides you may find useful

Employment through manpower contractors

Manpower contractor licence

Employee rights in Israel

Employ a worker through NETO · and rest easy

Why this page exists