Israel

Are you familiar with section 12 A of the labor law ?

Moshe

Are you familiar with section 12 A of the labor law ?

Submitted by Moshe on Tue, 08/03/2011 – 10:26

There is a trend among employers, especially in Public sector jobs where there is a mandatory tender for every position. This lengthy beaurocratic process can take months. Especially if the employer hasn’t put the proposed position into the annual budget.

In years past, there were employees who worked for years via employment agencies in the same place of work. Sometimes these employees would be transfered from one agency to another, thus losing valuable tenure.

The “Employment of employees via employment agencies” law which was passed by the knesset in 1996 helped rectify this situation somewhat.

The law specifies explicitly that an employee can be employed via an employment agency for a maximum period of 9 months. After this period, The employer either hires the employee directly or ends his employment. Extending the 9 month period is no longer an option, nor is transfering the employee to another employment agency.

The 9 month period is a mutual period of trial where both the employer and the employee check each other out and decide whether they want to continue employment with each other.

If the employer was negligent and didn’t notify the employee of his intentions on time, The law specifies that “an employee who worked for more than 9 months via an employment agency will then automatically be considered the actual employer’s employee”.

The tenure that an employee worked for an employer via the employment agency is recognized as tenure for all purposes with the employer, as the place of employment hasn’t changed.

The employment agency must conduct a hearing with the employee as to intent of continuation of employment directly via the employer or release of the employee. This needs to be done within the 9 month period and also subject to the advance notice law.

Warning Signs – Employers You Don’t Want to Work For

Moshe

There are many indications that one can detect if they are aware of them, even in job interviews (!), that will indicate a “bad” boss or mildy put “an employer you do not want to work for. This is especially true in Israel, where some employers just blatantly disregard labor laws. However, things are improving in this area in the last decade since Government enforcement has become more involved. they act on anonymous tips and after investigation submit suits in labor law, which heavily fine employers for recurring infractions of the law. Continue reading “Warning Signs – Employers You Don’t Want to Work For” →

New Tax Brackets for 2011

Moshe

In 2011, the tax rates (%) remain the same, but the amounts in each bracket have been revised.

The new tax rates for 2011 are as follows:

monthly gross pay tax rate in % tax

up to 5,070 10 507

next 3,590 (up to 8,660) 14 503 Continue reading “New Tax Brackets for 2011” →

Additonal 2011 Tax Changes

Moshe

The following are the new tax changes as published by the Israel Tax Authority:

Tax credits

value of tax credit point 209 shekels

qualifying income ceiling for section 45 alef 8,200 shekels

25% credit ceiling 143.50 shekels

35% credit ceiling 200.90 shekels

minimum annual donation (charity) 310 shekels

Tax deductions Continue reading “Additonal 2011 Tax Changes” →

Night Shift Work

Moshe

“Night shift” is specifically defined in the “work and rest hours” labor law (1951): “Any work day of which at least two hours are between 22:00 and 06:00 shall be considered night shift.”

Note: It is enough that a minimum of two hours of the work day/shift are between these hours for the employee to receive all the rights regarding night shift, for all of the hours worked in continuity with the two hours (the two hours can be at the beginning, end or middle of the work day. Continue reading “Night Shift Work” →

Tax Reduction for University Graduates

Moshe

If you completed higher education or vocational training at a recognized university or college in Israel from 2005 and onwards, you may be eligible for a reduction in taxes. You need to fill out a 119 tax form and attach a photocopy of the degree / certificate as well as a letter from the academic institution, which specifies your name and Israeli ID # and the date upon which you are eligible for the degree and the number of years you studied. You also need to check the appropriate box on the reverse side of your annual 101 tax form and attach the 119 form and photocopies listed above to be handed in to your employer (payroll or HR) Continue reading “Tax Reduction for University Graduates” →

Oct 2010 AACI mini seminar a huge success !

Moshe

AACI mini seminar – huge success !

Submitted by Moshe on Tue, 23/11/2010 – 10:14

The October 2010 mini-seminar at AACI Jerusalem had a wonderful turnout of over 30 people !

The feedback I received was that it was informative and precise and interesting. All of the attendees felt that they gained important knowledge and were glad they attended.

I want to personally thank each and every one of the attendees as well as Josie Arbel and Sheila Bauman of the AACI who organized the event. Without their dedicated work it would not have been possible !

Moshe

Order and enforcement of labor laws

Moshe

Order and enforcement of labor laws

Submitted by Moshe on Tue, 23/11/2010 – 00:12

 

The Administration of order and enforcement of labor laws takes a lot of action in implementing the directives of the labor laws in the State of Israel. The Labor laws, whom the administration has been trusted with enforcing, are defined as protective laws, that make up the legal infrastructure of the Israeli employment market. the purpose of these laws is to set a minimum Raff and to determine basic social rights for employees. These rights are expressed in setting employment terms for employees, that come to ensure a person’s honor, his ability to self fulfillment, equality, division of justice and more. A good portion of these laws have considerable financial significance and they increase the minimum wage to be paid to an employee, with aim to ensure a relatively appropriate standard of living in exchange for his work.

The Administration, as both the professional and authorized agent, coordinates under it’s auspices the enforcement of 19 labor laws, and locating violators and minimizing the detrimental treatment of salaried employees in the lower pay scales.

Goals:
1) Implementation of labor laws via efficient and effective mechanisms of
licensing and enforcement.
2) Creating and establishing practical basis for cooperation with internal and
external enforcement partners.
3) Intensifying both employer and employee awareness to directives of labor
laws within the administration’s responsibility.

The administration’s actions, both criminal and administrative are accompanied, guided and handled by the legal bureau of the Ministry of Industry, Trade & Labor.

Please note that while all complaints are followed through, a complaint may not necessarily solve your own personal issue with the employer and further action by you may be needed.

The administration can be contacted as follows:

Voicemail for complaints: 1-800-354-354 (can be done anonymously)
Tel: 03-622-3116
Fax: 03-682-8690
Email: achifa-ma@moital.gov.il

The administration of order and enforcement of labor laws
Derech Salameh 53
Tel-Aviv

Collective agreements and how they affect you

Moshe

Collective agreements and how they effect you

Submitted by Moshe on Tue, 09/11/2010 – 21:40

Most of the terms of employment are set not by law, rather by collective negotiating, thereby determining that the collective agreement is the basis for employee’s rights and duties.

The arrangements in collective agreements can be best characterized by the fact that they are not uniform. In each collective agreement one can find a different arrangement which is the fruit of collective bargaining. From the non uniformity of rights in collective agreements one can learn that not only are the span of rights different , but there are large groups of employees who do not share the same rights.

So, what is a collective agreement ?
They can be effectively divided into 2 types:
1) General Collective agreements
These are reached & signed by organizations that represent factoriesemployers in a certain field (such as: construction, textiles, diamonds, hotels, electronics, etc.) or in all fields (cost of living increase, travel expenses, Havra’a payment) and the liason office of general organizations and the worker’s union (histadrut) that represents the employees in a certain field or sector as well as the government (usually the Finance ministry).
2) Special Collective agreements
These apply to a certain employer and are signed by both the management of the employer and the worker’s union that represents the employees of that employer.

Some collective agreements get issued as a expanded regulations order by the minister of Labor, thereby becoming mandatory for every employer in the State of Israel.
A few examples of this are: travel
reimbursement to and from work, cost of living increase.

When a collective agreement is signed it binds all employees and an employee cannot say that he disagrees and didn’t approve it. That is why there are worker’s unions.

Not always does a collective agreement define the terms of employment. Frequently Small or private employers or where personal contracts are used, the contracts define the terms of employment, However, it should be noted that the personal contract cannot diminish or contradict the rights defined by law or by an expanded regulation order or collective agreement that may apply to the employer due to the field in which he operates. In short, the personal agreement cannot violate the labor laws of the State of Israel or the expanded regulation orders of collective agreements which are treated as labor laws. The personal agreements can however improve the terms in the law or collective agreement.

Even if a personal contract specifies explicitly terms that diminish the terms/rights defined by law, it becomes null and void, even if an employee signs it.

In small places of employment, it was customary to have work agreements based on verbal agreements, which would be always hard to prove. In such cases the law provides the minimum.

Since Jan 2008, when the section 24 of the protection of wages law came into effect, making mandatory written notification to all employees describing their terms of employment and specifying what needs to be written on this notification, verbal contracts have no place anymore.

see my blog post on correction 24:

and the blog post on “what needs to be included on my payslip” :

What happens to unused vacation days ?

Moshe

 

What happens to unused vacation days ?

Submitted by Moshe on Mon, 08/11/2010 – 20:23

If your employer has a policy of erasing unused vacation days that have been accrued, then basically it’s “use them or lose them”.
This is totally legal provided the employer notifies the employees in ample time to allow them to utilize the accrued days.

If an employee has 10 accrued days, the employer can’t notify the employee on Dec 31st that the days will not be carried over to January. He can and should specify this in employee’s contracts or notification of work conditions as well as a reminder in Sept or Oct with the payslip and notification on employee notice boards.

If such policy does not exist then the days are accrued and carried over from one year to the next. This is easily checked as the balance must be listed on the paylsip.

When an employee resigns or is terminated his position, all unused vacation days that have been accrued are paid out on the last payslip.

Mandatory Pension law – updated Sep 7, 2010

Moshe

Mandatory Pension law – updated Sep 7, 2010

Submitted by Moshe on Sat, 09/10/2010 – 23:18

 

The mandatory pension law was recently updated (Sept 7, 2010).
Originally planned for gradual annual updates from 2008 – 2013, when the mandatory % will reach 15% (5% employee, 5% employer and 5% severance pay -employer)

The new revision now ads another year (2014).
Starting Jan 1, 2014 the mandatory pension will be 17.50% as follows:
employee – 5.5 %
employer – 6.0 %
employer (pension) – 6%

The mandatory pension revision also specifies:
1) that it applies to employees who retired at retirement age and receive a stipend from social security (Bituach Leumi).
2) An employee who begins work at a new place of employment and is insured in a pension plan from his previous place of employment, will be eligible to receive the percentages specified in the mandatory mandatory pension law from day one with the new employer.

see the full wording of the mandatory pension plan here:

Everything you wanted to know about Havra’a payment

Moshe

 

Everything you wanted to know about Havra’a payment

Submitted by Moshe on Mon, 30/08/2010 – 23:51

 

What is Havra’a payment ?
Havra’a payment (or convalescence pay) is an annual, mandatory payment effecting all employers in the state of Israel via an expanded regulation order signed by the Minister of Labor. This means it is treated as a law.
Havra’a pay is paid to all employees who have at least one year of tenure with the employer.
Those who don’t are not eligible, but the following year are eligible to receive Havra’a payment for the full year plus the portion of the first year.
The payment is a number of days (see table below) multiplied by the rate (currently 351 shekels), which is updated every June. Employees who work less than full-time positions, it is prorated according to your % of position actually worked (including sick days, vacation, reserve duty and maternity leave).
There are two rates, one for the private sector and another, higher rate for the public sector. There are also separate tables of days of Havra’a eligibility for Histadrut employees, municipal employees and teachers.

Since most of the users of this site are employed in the private sector I have chosen to relate to this only.

Tenure with employer                       Number of Havra’a days
1 year                                                                     5
2-3 years                                                                   6
4 -10 years                                                               7
11-15 years                                                                8
16-19 years                                                                9
20 years and  upwards                                         10

 

Example: an employee who has been employed with the employer for 4 years in the private sector would receive as follows:

7 days * 351 sh = 2,451 sh (gross)

Note: There are employers who prefer to pay Havra’a on a monthly basis instead of a one-time annual payment. This is legal and the result would be an additional payment on each payslip of 1/12 of the Havra’a payment. Of course the amount needs to be updated annually (usually in June or July payroll).