Regulation on Migrant Workers' Employment in the Israeli Construction Sector

This article deals with a reform in the regulation on employment of migrant workers which was implemented in the Israeli construction industry from 2005. This corporations-based arrangement replaced a restrictive employment arrangement which tied the employee to a specific employer. The new regulation of work conditions and wages, coupled with a significant reduction in the number of work permits issued to construction, has improved work conditions and wages paid to migrant workers, and made their employment less attractive to employers. The reform also included elements designed to reduce the illegal employment phenomenon and to encourage migrant workers to leave the country at the end of their contracts. However, the new arrangement still restricted the mobility of migrant workers to some extent and had negative consequences such as a significant rise in the broker fees demanded of workers.