In brief: In Israel there are only two lawful ways to be paid for work · as an employee with a payslip, or as a business owner issuing an invoice. The law permits mediating between workers and employers only to a licensed manpower contractor, and operating without a license is a criminal offense. NETO holds that license · number 1565 · and is therefore entitled to employ and report its workers as salaried employees. Without a license, the worker would be treated as self-employed · despite the payslip. This is the foundation that lets NETO act as the employer of record for your Israeli worker · fully licensed and supervised. The license can be verified independently in the official Ministry of Labor registry, and every claim in this document is backed by the letter of the law.
1How can you be paid for work in Israel?
Israeli law recognizes only two routes:
| Route | What is required | What you get |
|---|---|---|
| Employee | An employer that reports you | A payslip · deductions and contributions are made by the employer |
| Business owner | Opening a file with the Income Tax and VAT authorities | Issuing an invoice · self-reporting to the authorities |
There is no third route. Anyone who is paid and does not fall into one of these two categories · is not being reported lawfully.
2Who is permitted to mediate between worker and employer?
This is the heart of the matter. There is only one lawful construct that the legislator permits for mediating between workers and employers: a licensed manpower contractor. This is not a business choice · it is an explicit statutory requirement.
״לא יעסוק אדם כקבלן כוח אדם אלא אם כן הוא בעל רשיון לכך מאת השר.״
Unofficial translation: "A person shall not act as a manpower contractor unless he holds a license to do so from the Minister."
Binding text = the Hebrew original (Reshumot / Nevo) Source: statute text · NevoIn other words: the legislator did not settle for a prohibition · it made the breach a criminal offense.
3What is required to obtain a license?
The license is not a form. The process required us to meet a series of cumulative conditions, each of which continues to apply for as long as the license is in force:
- Seniority and absence of convictions · a threshold condition for the license (s. 3).
- A bank guarantee · to secure the fulfilment of obligations toward the workers. Even in the worst case, the workers' money and rights are secured (s. 3(a)(2)).
- Ministry of Labor supervision · inspectors, investigative powers and the possibility of license revocation.
- An annual report approved by a certified public accountant.
- A duty to provide a copy of the license to the client on request (s. 10b(a)).
4What happens without a license?
This is the point most important to understand · and it has two sides.
From the worker's side: without a license, the company is not permitted to employ and report the worker as a salaried employee. In that case the worker would be treated as self-employed · even though a payslip was issued. The payslip alone does not create status; status derives from the legal framework behind it.
From the client's side: the exposure is not only the supplier's.
Section 20(d): the fine is imposed for each worker separately.
5How to verify NETO · without taking our word for it
Every detail below can be independently checked in the official Ministry of Labor registry:
| Detail | Value |
|---|---|
| Manpower contractor license number | 1565 |
| Company name in the registry | Bareket I.T Ltd |
| Company ID | 515486058 |
| License type | Manpower contractor |
| Status | Valid |
Direct check in the manpower contractors registry · Israel Ministry of Labor →
The registry is a government source · it is not under our control, and does not depend on anything stated in this document.
6What NETO does · and what is determined by the National Insurance Institute
This distinction is important, and we present it explicitly so that no misunderstanding remains:
| What NETO does | What is determined by the National Insurance Institute |
|---|---|
| Employs the worker as a salaried employee of a licensed manpower contractor | The insured person's actual status · according to their individual data |
| Issues a payslip and makes lawful deductions | Eligibility for any specific benefit or allowance |
| Contributes to pension and severance per law | An individual assessment under the criteria and the provisions of the law |
Additional documents for review
For clients and partners wishing to examine the matter in depth, we make available for review · on request · additional legal and regulatory references documenting the company's standing before the authorities.
To receive them · contact us and we will be glad to present them.
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