Order to increase enforcement of labor laws
Jan 25, 2018
Administrative Monetary Sanction for Violation of Occupational Safety Regulations
In June 2017, an amendment to the Law for the Enhancement of Enforcement of Labor Laws, 5772–2011, was published, authorizing labor inspectors to impose administrative monetary sanctions for violations of provisions relating to occupational safety.
The law authorizes a labor inspector to impose fines (administrative monetary sanctions, as termed by the law) for any breach of any of the employer’s obligations. For example: if four breaches are found in the fence surrounding a construction site, the inspector may impose four separate fines on the contractor.The “cost” of each breach is NIS 25,000. “A breach invites an inspector.”
This amendment entered into force on January 1, 2018, and applies to violations committed from that date onward. Below are several examples of the monetary sanctions imposed for violations of safety regulations:
Failure to appoint a safety officer may result in the imposition of a monetary sanction on the employer in the amount of NIS 20,160.
Failure to comply with instructions set out in a safety order, a stop-work order, or an improvement order—monetary sanction in the amount of NIS 35,280 for each violation.
Failure to ensure the preparation of a safety management plan and its updating may lead to the imposition of a monetary sanction in the amount of NIS 35,280 for each violation.
Additional provisions were also introduced relating to safety in work at height, work platforms, machinery and lifting accessories, and cranes.
Where multiple different violations are discovered, or in cases of a continuing or repeated violation, the monetary sanctions may accumulate up to a total amount of NIS 2.5 million.
An application may be submitted for a reduction of the monetary sanction in cases where the contractor immediately remedied the deficiencies that were discovered, or where the matter involves a “one-time lapse.” Conversely, where the contractor is deemed a “repeat offender,” the sanctions will be aggravated, and the contractor will also be subject to public disclosure (“shaming”).
In addition, the monetary sanctions imposed for violations of safety regulations do not detract from the contractor’s criminal liability and do not preclude the possibility of filing a criminal indictment against them.
Recommendation: The negligent party should pay!We recommend making it clear to every subcontractor that they will be financially liable for safety failures that fall within their scope of conduct and enforcement toward their employees, and for which a monetary sanction is imposed.This sanction, which will cascade downward to each subcontractor and their workers, may also contribute to improved site safety and worker conduct.
Financial penalty for violating workplace safety regulations
During June 2017, an amendment to the Law for Increasing Enforcement of Labor Laws 2011 was published, authorizing labor inspectors to impose financial sanctions for violating provisions relating to maintaining safety at work .
The law authorizes the labor inspector to impose fines (financial sanctions, as the law states) for any violation of any of the employer's duties. For example: if four breaches are found in the fence surrounding the construction site, the inspector may impose four fines on the contractor.
The 'cost' of each breach is 25,000 NIS. "A breach calls for an inspector."
The said amendment entered into force on January 1, 2018 and applies to violations from the date of its entry into force onwards. Here are some examples of the cost of the sanction for violating safety instructions:
Failure to appoint a safety officer may result in the imposition of a financial sanction on the employer in the amount of 20,160 .
Failure to comply with instructions set forth in a safety order, work stoppage order, and improvement order - a financial sanction of NIS 35,280 for each violation.
Failure to ensure the preparation and updating of a safety management plan may lead to a financial penalty of 35,280 NIS for each violation.
Instructions related to safety when working at heights, on work surfaces, with lifting machines and accessories, and with cranes were also added.
When several different violations are discovered or due to a continuing or repeated violation, the financial sanctions can accumulate up to an amount of NIS 2.5 million.
A request for a reduction in the amount of the financial sanction may be submitted in cases where the contractor immediately corrected the discovered faults or when it is a 'one-time stumbling block.' On the other hand, when it is a 'contractor on a deadline', he will be subject to more severe sanctions and will also be subject to public publicity ('shaming').
In addition, the sanctions imposed for violations of safety regulations do not detract from the contractor's criminal liability and do not block the possibility of filing an indictment against him.
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Recommendation: The negligent will pay!
We recommend making it clear to every subcontractor that he will be financially liable for safety failures that are within his scope of conduct and enforcement towards his employees, for which a financial sanction will be imposed.
This sanction, which will trickle down to every subcontractor and his employees, may also contribute to the safety of the site and the behavior of the employees there.
Below are our modest recommendations for proper conduct:
What to do first thing tomorrow morning
✔ Ensure that notice of commencement of work and appointment of a foreman has been given.
✔ Ensure that there are inspection reports for all equipment that requires a report, including the crane.
✔ Ensure that all workers who work in 'Works at Height' have valid certification
✔ For working at height and that they are equipped with the appropriate protective equipment.
✔ Ensure that the appropriate registers are present at the construction site and that they are managed properly: general register, crane register, and training register.
How to behave during an inspection by an inspector from the Ministry of Labor
✔ Upon the arrival of an inspector to the construction site, he will be accompanied by the foreman.
✔ The work manager will immediately notify the project manager of the audit.
✔ The foreman will document and photograph the inspector's visit and all apparent defects found.
✔ The contractor will ensure that the defects are repaired as soon as possible (preferably immediately) and will document their completion.
✔ After correcting the defects, it is recommended to send a letter to the person in charge of the defects detailing the correction of the defects and the measures taken to prevent their recurrence.
Early prevention action
We recommend reviewing and refreshing the safety instructions, ensuring full compliance with all safety instructions at work, and, as necessary, taking corrective measures, including updating the company's work procedures.
To review the safety regulations for refresher purposes, click here.
What to do first thing tomorrow morning
✔ Make sure that a notice of commencement of work has been submitted and that a site manager has been appointed.
✔ Make sure that inspection reports are available for all equipment that requires inspection, including a crane.
✔ Make sure that all workers engaged in “work at height” hold valid certification
✔ for work at height and are equipped with the appropriate personal protective equipment.✔ Make sure that the required logbooks are present at the construction site and are properly maintained: a general logbook, a crane logbook, and a safety training logbook.
How to conduct yourself during an inspection by a Ministry of Labor inspector
✔ Upon the inspector’s arrival at the construction site, the site manager shall accompany them.
✔ The site manager shall immediately notify the project manager of the inspection.
✔ The site manager shall document and photograph the inspector’s visit and all deficiencies allegedly found.
✔ The contractor shall ensure that the deficiencies are remedied as soon as possible (preferably immediately) and shall document the corrective actions taken.
✔ After correcting the deficiencies, it is recommended to send the authority responsible for the deficiencies a letter detailing the corrections made and the measures taken to prevent their recurrence.
Preventive action in advance
We recommend reviewing and refreshing the safety instructions, ensuring full compliance with all occupational safety regulations, and, as necessary, taking corrective steps, including updating the company’s work procedures.
For a review of the safety regulations for refresher purposes, click here
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