Israel's Labor and Social Affairs Ministry reported a 90% decrease in fines given to companies that have violated worker rights, according to a press release from the ministry on Monday.
In 2020, the ministry imposed some 40 fines on employers who deprived workers of their rights, compared to 450 fines imposed in 2019. the fine on companies have been applied to a variety of industries, ranging from cleaning, education, catering, transportation, industry and commerce.
Most of the fines in 2020 were given due to supervision activity done by the ministry, while a minority were due to complaints from employees. Fines can range, depending on the number of violations, their severity, and time lapsed, from NIS 18,000 to NIS 1 million.
Sharon Witkowski-Tabib, a partner at BDO Israel, said in a statement that the dramatic decrease in fines during the coronavirus pandemic was due in part to a reduction of commercial activity, particularly in regards to workers on temporary leave. Similarly, audits by the ministry were also reduced to avoid additional financial burdens on employers.
In an effort to reduce the potential of violations, some companies have also resorted to hiring the services of payroll inspectors to examine the strictness of employment conditions of workers not directly employed by the company, such as contractors. This method, according to BDO, has led to a 60% decrease in worker rights violations.