Effective on June 19,2012 The Administration of Enforcement & Regulation in the Ministry of Trade, Industry and Labor will be stepping up their efforts to enforce labor laws by spot checking employers. Any discrepancy can lead to fines of thousands of shekels for each offense and for each employee. In addition, CEO’s will be held personally responsible for failure to implement the laws. The fine issued to a CEO cannot be paid for by or refunded by the company and in extreme cases can result in criminal charges and even possible jail sentence. The only way a CEO can legally fight the fines and charges in a court are if he has proof of existing policies and procedures and that he has done all in his power to enforce the labor laws.
For example, a company who hires a manpower agency to provide cleaning workers or guards, can be held responsible if the manpower agency doesn’t pay them minimum wage, overtime, allow them to sit or take a break, are tardy in paying. The company needs to check the manpower agency’s calculations and payslips to ensure they pertain to the labor laws.
All employees need to have time-sheets, they can be an actual swipe card electronic clock, a computerized program, via a cash register or an internet time-sheet. It must have start and end times for each day worked and be able to track absences and overtime. The only exception are employees who work outside, on the road, etc in which case the pay slip needs to say “hours not able to be tracked”
