March 23, 2020
Dear Clients and Friends,
New regulations entitled “Emergency Regulations (Limiting the number of workers in the workplace to reduce the spread of the new Coronavirus)-2020” entered into effect on March 22, 2020 (the “New Regulations“). The New Regulations are aimed at limiting the general activities and workplace activities in Israel and constitute an additional step by the Israeli Government in order to prevent the spread of the Covid-19 disease virus in Israel.
The New Regulations limit the number of employees who may be present simultaneously in a workplace (whether in one or several buildings) to 10 employees or 30% of all employees, whichever is higher. An employer who violates this obligation may be subject to criminal penalties of up to six months incarceration and fines of up to NIS 14,000 (approximately USD 3,800).
The New Regulations provide for a number of exemptions to this limitation (or apply the limitation in a different manner1). Exempted employers are still required, under the New Regulations, to reduce manpower as much as possible. The exemptions include, among others, various government ministries, government corporations, essential service plants (as such term defined under the Emergency Labor Service Law-19672) , and different industries, including the following sectors: financial (including banking and capital markets), energy, healthcare and pharma, food and beverage, agriculture, telecommunications, environmental protection and certain services in the field of tech, cyber security, communications, digital and research and development. The full list of exempt industries is available in the following link, and of course we are at your disposal for any clarification or assistance.
Certain employers may be recognized “Vital Enterprises“, according to the Emergency Labor Service Law-1967. A production plant (in whole or part) can be operated for the state or public security or for the provision of essential services, as well as a production plant that can be operated for the purpose of sustaining the economy and whose operation is essential for the supply of services necessary for the public or for export can be declared a Vital Enterprise.
Generally, the process of being declared as a “Vital Enterprise” involves filing a request by a designated authority (i.e. the relevant governmental office) to a competent committee within the Ministry of Labor, Social Affairs and Social Services. To our knowledge, to date, the Ministry of health (which handles and supervises the prevention of the spread of the Coronavirus in Israel), has not yet declared any new “vital enterprises”.
Please note that our firm is at your service during these unique times. We are continuing our work and are available by email, telephone, and, if required, even face-to-face meetings where permitted.
1. Certain industries are subject to different limitations (e.g. the National Cyber Security Authority shall limit its manpower to 70%).
2. Defined as a plant which operates (or such that can operates) for the state or public security, or which provides essential services (e.g. water, food, electricity, health services, sanitation, communications, mail.
For additional information please contact Atty. Yael Dolev at 03-6074800; email: yaeldo@gkh-law.com, or Atty. Idan fefer at 03-6074800; email: idanf@gkh-law.com
Gross, Kleinhendler, Hodak, Halevy, Greenberg, Shenhav & Co. (GKH), is one of the leading law firms in Israel, with over 170 attorneys. GKH specializes, both in Israel and abroad, in various fields of law including Mergers and Acquisitions, Capital Markets, Technology, Healthcare and Life Science, Banking, Real Estate, Project Finance, Litigation, Antitrust, Energy and Infrastructure, Environmental Law, Intellectual Property, Labor Law and Tax.
This alert is prepared as an informational service to clients and colleagues of Gross, Kleinhendler, Hodak, Halevy, Greenberg, Shenhav & Co. (GKH) and the information presented is not intended to provide legal opinions or advice. Readers should seek professional legal advice regarding the matters about which they are particularly concerned.
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