Employing foreign workers: the permit, the employer’s duties and the sanctions

Service page: Support for employers: hearings, dismissals and employee claims.

Permit and visa: two documents, two bodies, two holders

A “work visa” is not one document:

• The permit belongs to the employer. Section 1M of the Foreign Workers Law provides: “A person shall not take on a foreign worker for work unless the Commissioner, or an employee of the Ministry of Interior on the Commissioner’s behalf, has permitted in writing the employment of the foreign worker by that employer, and in accordance with the conditions of the permit”. The permit can be given for a certain quota of workers or by a list of names. It is given “taking into account, among other things, the characteristics of the labor market in the various work sectors and areas of employment”.
• The visa and the residence permit belong to the worker. A B/1 visa and residence permit are given to the worker under the Entry into Israel Law, 5712-1952 and its regulations. They allow the worker to stay and work in the sector and under the conditions set in them.

In practice, a valid permit with one employer does not “cover” employment with another employer. And a valid visa held by the worker does not make the permit unnecessary. Employment where one of the two documents is missing is unlawful employment.

Permits, quotas and sectors: where they are set

The Population and Immigration Authority manages the permits, the sector quotas, the application procedures, the fees and the permit charges. They change from time to time through government decisions and procedures. A legal article is not a substitute for the current procedure. Before applying, check the foreign workers employment page on the Population and Immigration Authority website. Also check the procedure in force for the relevant sector.

What is fixed in the Law, and worth knowing before you start the process:

• Section 1H allows the permit to be made conditional on depositing a security.
• Sections 1J and 1J1 set a fee and a permit charge.
• Section 1N1 allows a permit to be made conditional on paying a final fine. In other words, past debts for earlier offenses block a new permit.
• Section 1O gives the power to cancel or restrict a permit, or to refuse to give or renew it.
• Section 1I imposes an ongoing duty to report to the Commissioner.

This is the regulatory layer. Most of the claims and fines come from a completely different layer. It does not depend at all on whether the permit is valid. These claims are heard in the Labor Court. So representation in the Labor Court is part of the preparations of every employer that employs foreign workers.

The five duties the employer owes to the worker

Chapter B of the Foreign Workers Law is titled “Conditions of employment”, and it places personal duties on the employer. Failing to fulfill any one of them is a separate criminal offense, separately from and in addition to the offense of employment without a permit:

1. A medical certificate (section 1B): providing a medical certificate as required before employment starts.
2. A written employment contract, in a language the worker understands (section 1C): it has ten mandatory details. They include the list of deductions, the payment dates, the weekly rest day and the details of the Commissioner for Foreign Workers’ Rights. A copy is given to the worker; a copy and a Hebrew translation are kept at the workplace under section 1F.
3. Medical insurance at the employer’s expense (section 1D): for the whole period of employment, covering the basket of services set by the Minister of Health. A deduction from wages is allowed only up to the rate set in the regulations.
4. Adequate housing at the employer’s expense (section 1E): for the whole period of employment and for at least seven days after it ends. Here too, the deduction is limited by a regional ceiling.
5. A deposit (Chapter D, section 1K onward): a monthly deposit into a dedicated account, no later than the 15th of the month for the previous month. The amount is the severance component and the employer’s pension contribution component under the applicable extension orders. Exempt: a caregiver employed by an individual not in the course of their business, the experts sector and the agriculture sector.

On top of all these: the total deductions from wages may not exceed 25%, and a term in the contract that allows more is void. The ceilings and the updated amounts are set out in the guide Foreign workers in Israel: their rights under the law.

Alongside all this, all the protective employment laws apply in full. These include minimum wage, working hours and rest, annual leave, sick leave, recuperation pay, advance notice, severance pay and a detailed payslip. See Recuperation pay 2026: how many days, how much money and when it is paid and Employment contract: what it must say.

Employing a foreign worker without a permit: the actual sanction

Section 2(a) of the Law defines the offense. An employer commits it by employing a foreign worker who is not allowed to work in Israel under the Entry into Israel Law. An employer also commits it by employing a worker in breach of section 1M. The penalty is set as a multiple of section 61 of the Penal Law, 5737-1977. So it “moves” when the amounts in that section are updated. Based on the amounts in section 61 today (NIS 29,200 in section 61(a)(2) and NIS 1,400 a day in section 61(c)):

Three notes that change the picture:

• A minimum penalty. Under section 2(a1), the fine shall not be less than double the administrative fine set for the offense. The court may reduce it only for special reasons, and it must record them.
• The daily fine adds up for each worker. In a business that employs several workers over months, it is the daily component that produces the large amount, not the basic fine.
• The amounts in section 61 are updated. Check the wording in force on the date of the offense.

There is more, in addition to the fine. Section 5A1 allows an administrative order restricting the use of the premises. Section 1N1 allows a future permit to be blocked until a final fine is paid.

The administrative route: a monetary sanction without an indictment

Alongside the criminal proceeding, there is a much faster route: the Increased Enforcement of Labor Laws Law, 5772-2011. It allows the Commissioner (a senior labor inspector) to impose a monetary sanction (an administrative fine) without a court. This applies to a breach of a provision listed in the Second Schedule to the Law. The amounts under section 3, in their updated values for 2026:

The Second Schedule expressly includes breaches of the Foreign Workers Law. Among others, it covers the prohibition on deducting amounts from the foreign worker’s wages (section 2(b)(9)). It also covers deductions above the permitted rate for medical insurance or for adequate housing. And it covers the duty to enter into an employment contract and set out the terms of employment in it under section 1C(a) and (b).

Three mechanisms that multiply the exposure:

• A continuing breach (section 4(a)): one fiftieth of the sanction is added for each day on which the breach continues.
• A repeated breach (section 4(b)): a breach of the same provision within two years of the previous one doubles the amount.
• The general manager’s liability (section 14): the CEO of a corporation must supervise and take reasonable measures to prevent breaches. If no measures were taken after a warning, the CEO is presumed to have breached that duty. A personal sanction can then be imposed on them, unless they prove that they did everything possible.

Before imposing a sanction, section 15 allows the Commissioner to give an administrative warning (התראה מינהלית) instead of a notice of intent to impose a sanction. The employer may ask in writing, within 30 days, for the warning to be canceled. There are two grounds: it did not commit the breach, or the act is not a breach. This is the least expensive point of intervention in the whole process, and it should not be missed. See also: Support for employers in employment law.

Who else is exposed: the actual employer, the client and the officer

Liability does not stop with whoever signs the payslip.

The actual employer (section 4 of the Foreign Workers Law). A foreign worker who is not allowed to work in Israel may be employed at a person’s business. That person is treated like the employer who committed the offense under section 2(a)(1). In other words, “the worker belongs to a manpower company (a manpower contractor)” is not a defense.

Transfer of duties under section 1G1. Sometimes a manpower contractor employs a foreign worker. Then several duties also pass to the actual employer: to pay the full wages, to make the deposit, to provide medical insurance, and to provide housing when the worker lives on the actual employer’s premises. This happens in one of three cases. The worker demanded in writing that the manpower contractor fulfill the duty and gave written notice of this to the actual employer. Or an inspector gave such notice. Or a claim was filed against both of them. In each case, the duty was not fulfilled within 21 days of the notice.

A client under the Increased Enforcement Law. Here the scope is narrow and focused. A “service” for the purposes of the Law is guarding and security, cleaning, and catering provided to the client’s employees. In these fields, section 25 makes the client civilly liable for the contractor’s obligations toward its employees. Three cumulative conditions apply. The service is provided through at least four employees. It lasts at least six months, on a regular and continuous basis. And notice was given as required, and the duty was not fulfilled within 30 days. Section 26 adds an active duty. The client must set up at the workplace an effective way to give notice of violations of rights, and inform the contractor’s employees about it. A client that did not do so is exposed to liability even without the notice condition. Section 27 sets the defenses: full correction of the breach, or relying in good faith on periodic checks by a certified wage auditor (בודק שכר מוסמך).

An officer (section 5 of the Foreign Workers Law). An officer must supervise and do everything possible to prevent offenses under sections 2–4. If a corporation committed an offense, the officer is presumed to have breached their duty. They can rebut this by proving that they acted without criminal intent and without negligence, and did everything possible to prevent it.

The other side of the table: what the Commissioner for Foreign Workers’ Rights does

Sections 1V–1CC created a dedicated position at the Ministry of Labor to enforce the rights of foreign workers. Any person may file a written complaint with the Commissioner, not only the worker. The Commissioner may hold an inquiry, or file a civil claim in the Labor Court on behalf of the complainant or in the Commissioner’s own name. The Commissioner may also ask for a general order. With the consent of both parties, the Commissioner may refer the complaint to mediation within the meaning of section 79C of the Courts Law [Consolidated Version], 5744-1984.

For the employer, mediation is often the most favorable of the available outcomes. It prevents the dispute from escalating into a claim and publicity, and it is confidential. How the process works in an employment dispute, and what can be settled in it: Mediation at work.

Frequently asked questions

What is the difference between an employment permit for a foreign worker and a work visa?

These are two separate documents from two bodies. The permit is given to the employer. Section 1M of the Foreign Workers Law, 5751-1991 provides that a person shall not take on a foreign worker for work without a written permit. The Commissioner, or an employee of the Ministry of Interior on the Commissioner’s behalf, must have permitted their employment by that employer. The employment must also follow the conditions of the permit. The B/1 visa and residence permit are given to the worker under the Entry into Israel Law, 5712-1952 and its regulations. They allow the worker to stay and work in the sector and under the conditions set in them. A permit of one employer is not valid with another employer, and a valid visa held by the worker does not make the permit unnecessary.

What is the sanction for employing a foreign worker without a permit?

Section 2(a) of the Foreign Workers Law sets the penalty as a multiple of the fines in section 61 of the Penal Law, 5737-1977. The amounts in force today are NIS 29,200 in section 61(a)(2) and NIS 1,400 a day in section 61(c). So the penalty is double the fine, about NIS 58,400. About NIS 5,600 is added for each worker and each day on which the offense continues. The worker may have been employed in the course of the employer’s business or occupation. Then the penalty is one year’s imprisonment or four times the fine, about NIS 116,800, plus the daily fine. Section 2(a1) sets a minimum: the fine shall not be less than double the administrative fine set for the offense. The amounts in section 61 are updated from time to time.

Is the client responsible for the rights of a foreign worker employed at its site through a contractor?

In two ways. Section 1G1 of the Foreign Workers Law covers a foreign worker employed by a manpower contractor. The duties to pay full wages, to make the deposit, to provide medical insurance and to provide housing also pass to the actual employer. This happens if a written demand and notice were given, or a claim was filed, and the duty was not fulfilled within 21 days. In addition, the Increased Enforcement of Labor Laws Law, 5772-2011 makes a client civilly liable in the fields of guarding and security, cleaning and catering. The conditions are at least four employees, six months of regular and continuous service, and no correction within 30 days of the notice. Section 27 sets defenses, including relying in good faith on checks by a certified wage auditor.

What is the monetary sanction that can be imposed without a criminal proceeding?

Under section 3 of the Increased Enforcement of Labor Laws Law, 5772-2011, the Commissioner may impose a monetary sanction. This applies to a breach of a provision listed in the Second Schedule. These include breaches of the Foreign Workers Law. Examples are a prohibited deduction from the foreign worker’s wages, and a deduction above the permitted rate for medical insurance or housing. Another is not entering into an employment contract under section 1C. The updated amounts for 2026 are NIS 6,010 for Part A, NIS 24,060 for Part B and NIS 42,100 for Part C. An individual who employs not in the course of a business pays half of that. For a continuing breach, one fiftieth of the sanction is added for each day. For a repeated breach within two years, the amount is doubled.

How do you bring a foreign worker to Israel: what is the order of steps?

In general terms, this is the process under the Foreign Workers Law. The employer applies to the Population and Immigration Authority for an employment permit (section 1M). It pays an application fee for each worker (section 1J). In the construction sector, the permit also depends on a permit charge (section 1J1). The application for the worker’s visa and residence permit must include a medical certificate from a recognized medical institution (section 1B). The test must be carried out in the three months before the worker enters Israel. From the start of employment, three things are required: a written contract in a language the worker understands, and medical insurance and adequate housing at the employer’s expense (sections 1C–1E). In the sectors where the deposit applies, a monthly deposit is also required. The quotas, sectors and procedures are set by the Population Authority and they change, so check the procedure in force before applying.