Reforming Foreign Worker Employment in Israel
Author: Yoram Ida Policy Research

In 2005, comprehensive reforms were instituted regarding the employment of foreign workers in the construction sector, in whose framework the Restrictive Employment Arrangement was repealed and an alternative system was implemented, referred to as the Corporations Arrangement.

 This new arrangement authorized the hiring of foreign workers on a fixed-quota basis, subject to various fees and employment levies, solely via licensed manpower corporations.The findings of the present study, which looked at the reform’s impact on foreign workers and their employers, indicate that the reform has significantly improved the employment conditions of foreign workers in the construction sector, reduced the profitability of switching to illegal employment frameworks, and created a financial incentive for workers to leave the country once their permitted employment period has ended. Further, the study makes recommendations regarding extending this arrangement to other sectors where foreign workers are employed.

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