The construction industry in Israel has long been reliant on foreign workers to meet its growing demands. Due to labor shortages, the government has implemented various procedures to streamline the employment of foreign workers, ensuring the sector continues to function efficiently, especially in critical times such as the current conflict in the region.
Key requirements for companies employing foreign workers
Companies that receive approval from the authorities to employ foreign workers must fulfill several requirements, which include financial obligations and documentation submissions.
- Bank guarantee: After receiving the notification of approval, the company is required to deposit a bank guarantee of 9,326 NIS for each foreign worker under its permit
- Completion of documents: The company must submit:
- Proof of an active deduction account from the National Insurance Institute and the Tax Authority.
- Certificate of incorporation of the company.
- Company memorandum and articles of association.
- Details of the company’s bank account.
- Payment of fees: Once the documents are submitted, the company must pay the following fees:
- Application fee: 1,000 NIS per foreign worker.
- Annual license fee for labor contractors: 13,630 NIS.
Bilateral and private employment routes
The process of employing foreign workers in the construction sector can be done through two primary channels: the bilateral agreement and the private employment route.
Bilateral agreement process:
- The Ministry of Construction and Housing is responsible for reviewing and approving potential foreign workers from countries that have been authorized by the Director-General of the Population and Immigration Authority.
- Companies are required to send a list of foreign workers for potential recruitment. Once approved, the company must submit signed employment contracts for the workers.
Private employment route:
- Due to labor shortages caused by the “Operation Iron Swords” conflict, a temporary procedure was introduced allowing companies to bring foreign workers into the construction sector through private recruitment. This temporary procedure provides a maximum quota of 10,000 foreign workers, available on a first-come, first-served basis.
Fees associated with foreign worker employment
In addition to the aforementioned bank guarantees and initial fees, companies employing foreign workers in the construction sector are subject to several ongoing fees:
- Annual fee: 8,020 NIS per worker (divided into monthly payments).
- Work permit fee: 13,620 NIS per worker, also paid in monthly installments.
- Entry visa fee: 195 NIS, plus an additional 195 NIS for the worker’s permit.
Ensuring professional standards
The Ministry of Construction and Housing, in cooperation with the Population and Immigration Authority, plays a crucial role in verifying the professional qualifications of foreign workers. Workers must pass professional exams in their country of origin to ensure they meet the required standards for employment in Israel.
Conclusion
The foreign worker employment process in Israel’s construction sector is carefully regulated, ensuring that only qualified workers are brought in and that companies comply with legal and financial requirements. As the industry continues to face challenges, particularly during times of conflict, the Israeli government has adapted procedures to ensure the continued growth and functionality of the sector while protecting the interests of both companies and workers.
