Employee employer relations in Israel the complete guide



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EMPLOYEE-EMPLOYER RELATIONS IN ISRAEL - THE COMPLETE GUIDE
Strong employer-employee relationships are based upon a strong legal connection that can only be made from natural and necessary laws.
What constitutes an employee-employer relationship in Israel? The Labor Court rules on disputes between an employee and employer.

WHAT IS THE LEGAL SIGNIFICANCE OF DETERMINING AN EMPLOYEE-EMPLOYER RELATIONSHIP?
Types of Employees in the state of Israel:
• Employee: receives a salary based upon working hours
• Independent Contractor: fixed price with no hourly rate
• Freelancer: serves a particular client on a regular basis
• Volunteers: unpaid work
• Employees by virtue of the law: elected officials where the Knesset decides the salary, including soldiers and police officers
• Forced labor: people who have received punishment involuntarily and work under duress. Prison inmates who work while serving their sentences are included.
• Work from home: receives a salary but performs work remotely from home
• Manpower contractor and services contractor are both forms of indirect employment.

Each transaction is subject to different legal norms therefore we must identify the nature of the working relationship to understand which laws apply. The distinction between each relationship is critical.

The protective laws (e.g. minimum wage, Hours of Work and Rest Law, the Dismissal Compensation Law) apply to only those who are legally employees and therefore are not applicable to a “self-employed person” who has entered into a contract.

Two main questions arise in the case of a lawsuit:
1. What type of employee is the defendant or plaintiff?
2. Did the employee commit the offense?
If it is found that the job operator is in the status of an employee then the client of the work will immediately be considered an employer
To determine who is an “employee”, a number of auxiliary tests are used.

Test of control and subordination:
Firstly, the employer's control is examined. Did the employer have the right and the ability to control the employee's operation and supervise his work?
Secondly, the employee’s subordination is examined. Is the employee obligated to follow the employer's instructions and does the employer see the employee as an employee?

However, in some cases, this test is too conservative. For example, the majority of high-tech workers do not pass this test. Therefore, additional auxiliary tests were developed.

Rob was a gardener employed by a building committee by contact. When he was absent, he would bring a replacement. When the committee wanted to replace him, Ron demanded compensation. The committee never stated that Ron was the only worker and there was no personal connection between the committee and Ron. Additionally, because Ron found a replacement when he could not come to work he did not constitute an employee.

WHO IS A FREELANCER?
Tzedaka v. State of Israel (Galey Tzahal)
Tzedaka was a correspondent for the Haaretz newspaper in London and GLC wanted him to be their correspondent too. He agreed. GLC paid him for every article he produced. After nearly eight years, GLC told Tzedaka that his services were no longer needed.

A service contractor, in Israel, specializes in providing a specific professional service The service must be provided in the customer’s place. The service is also not temporary. They have no employer-employee relationship.

HIRING CONTRACTOR WORKERS
In 1996, the Israeli legislature decided to make an order and enact the Law on the Employment of Workers by Contractors, 1556-1996.
In 2000, the amendment was made into law. According to section 12A of the Employment of a Contractor Employee Law, it is not possible to employ an employee for more than nine months (for the first time there is a definition of a temporary employee). If the employment period exceeds nine months the employee must be hired directly.

ACCORDING TO ISRAELI LAW, AN EMPLOYEE WHO IS OUTSOURCED AND EXPERIENCES A VIOLATION OF HIS HUMAN RIGHTS MUST TELL HIS INITIAL EMPLOYER WHO THEN MUST CONTACT THE CONTRACTOR.

DESPITE MANY CRITICISMS, EMPLOYMENT THROUGH MANPOWER COMPANIES AND SERVICE CONTRACTORS IS LEGAL IN ISRAEL.

ACCOMPANIMENT AND LEGAL REPRESENTATION FROM QUALIFIED AND EXPERIENCED LABOR LAW ATTORNEY
Shimon Hahn Law office specializes in labor, civil, and commercial law. Shimon Hahn is also very experienced in real estate, litigation of neighbor disputes, lawsuits, inheritance, wills, and more. Our firm provides personalized legal services to our clients and ensures full assistance in the process of filing claims with labor courts. Our experienced labor law attorneys collect and formulate testimonies and evidence. They use proper conduct before the responsible and relevant parties and represent in mediation proceedings and in all courts until the desired result is achieved all while preserving the client's important interests and rights.
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