The danger of terrorist attacks by illegal workers and the implications for the employer
Apr 21, 2024
By: Omri Nisani, Civil EngineerWritten with the assistance of: Attorney Maya Arieli, specialist in issues related to employing Palestinian workers
On January 15, two vehicles stolen from customers left a car wash in Ra’anana. The vehicles were driven by a pair of attackers who were working at the facility without permits (illegal residents).
The assailants split up, with one heading to Ahuzat HaRishon Street and the other to HaTaasiya Street. Their killing spree resulted in the murder of one woman and injuries to approximately 18 others. During the investigation, the attackers admitted to their actions, and it was revealed that they had extensive criminal and security-related backgrounds.
The question arises: Can a business owner who employs illegal residents that later become attackers be charged criminally or even face civil claims from the victims? What are the implications of this event for employers across the construction industry, and do they have any insurance protection against potential legal actions?
These issues are briefly addressed in the following article, written with the assistance of Attorney Maya Arieli, an expert on employing foreign and Palestinian workers, including in the construction sector.
Update: In January 2024, a criminal indictment was filed against the owner of the car wash for illegal employment and lodging in aggravated circumstances. The offense carries potential penalties including many years of imprisonment as well as significant financial sanctions.
By: Omri Nissany, Civil Engineer
Written with the assistance of Attorney Maya Arieli, an expert in issues of employing Palestinian workers
On January 15, two vehicles that were stolen from customers and driven by a pair of terrorists who worked there without permits (illegal residents) left a car wash in Ra'anana.
The attackers split up, one heading to the main Ahuza Street and the other to Industrial Street. The killing spree led to the murder of a woman and the injury of about 18 others. During their interrogation, the terrorists confessed to their actions and it turned out that they had extensive criminal and security records.
Is a business owner who employs illegal immigrants who become terrorists liable for indictment or even a civil lawsuit from the victims? What does the incident mean for various employers in the construction industry and do they have insurance protection against any proceedings that may be taken against them?
This is briefly discussed in the following article, which was written, among other things, with the assistance of Attorney Maya Arieli, an expert in employing foreign and Palestinian workers, including in the construction industry.
Before we begin, an update: In January 2024, the owner of the car wash was indicted for aggravated unlawful hiring and exploitation. A crime that can result in many years behind bars, as well as significant financial penalties.
Manpower shortage as a source of danger
The shortage of manpower in the construction industry, following the absence of tens of thousands of Palestinian workers, is increasing. As a result, it is also creating many situations in which employers, who are largely caught between a rock and a hard place, "deviate" from the guidelines and employ illegal Palestinian workers.
The involvement of illegal residents in terrorism is a well-known fact, and many attacks have been carried out over the years by Palestinians who crossed the fence illegally. In January 2024, the police even announced an unprecedented operation to combat the phenomenon, which was named Operation Mamim because it is aimed at drivers, employers , and campers. After the attack in Ra'anana, the operation was intensified and expanded.
Attorney Arieli emphasizes that employing Palestinian workers without a work permit is a violation of the law, even without any connection to terrorism or the commission of criminal acts by them. A contractor or subcontractor who employs illegal residents is primarily subject to an administrative fine that can reach up to 10,000 shekels per employee and even double the fine in the event of a repeat offense. At the same time, he may face criminal prosecution with sanctions of fines of hundreds of thousands of shekels and even actual imprisonment behind bars. In April 2024, the Entry into Israel Law was updated and the offenses for these acts were drastically and significantly aggravated.
Adv. Arieli explains that in addition to direct sanctions against the employer, the business may be closed by administrative order, and if it is a contractor, then the information will reach the Contractors' Registry. In the case of the attack in Ra'anana, for that matter, the police arrested the employer and imposed an administrative closure order on the car wash for 30 days.
It is important to add that employing an illegal Palestinian worker in the current climate may encounter a stricter approach from law enforcement authorities, especially if the worker commits a terrorist attack while employed. We will also note in a sidebar that employing illegal Palestinian workers entails many additional problems. For example, payment in cash due to the worker's failure to register with the tax authorities, the inability to pay for the worker's National Insurance contributions and, as a result, the lack of coverage in the event of a work accident, and more.
The manpower shortage in the construction industry, due to the absence of tens of thousands of Palestinian workers, is steadily worsening. As a result, situations increasingly arise in which employers—who often find themselves between a rock and a hard place—“violate” regulations by employing illegal Palestinian workers.
The involvement of illegal residents in terrorism is a well-known fact, and over the years, many attacks have been carried out by Palestinians who crossed the border illegally. In January 2024, the police even announced an unprecedented operation to combat this phenomenon, called Operation MEMIM, targeting transporters, employers, and hosts of illegal workers. Following the attack in Ra’anana, the operation was intensified and expanded.
Attorney Arieli emphasizes that employing Palestinian workers without a work permit is a violation of the law, regardless of any connection to terrorism or criminal acts. A contractor or subcontractor who employs illegal residents may first face an administrative fine of up to 10,000 NIS per employee, with fines potentially doubled for repeat offenses. At the same time, the employer may face criminal prosecution, with penalties including fines of hundreds of thousands of NIS and even imprisonment. In April 2024, the Entry into Israel Law was updated, and the offenses associated with such actions were significantly and comprehensively tightened.
Attorney Arieli explains that, alongside direct sanctions against the employer, the business may be shut down by administrative order, and in the case of a contractor, the information will be reported to the Contractors’ Registrar. For example, following the Ra’anana attack, the police arrested the employer and issued a 30-day administrative closure order for the car wash business.
It is important to add that employing an illegal Palestinian worker in the current climate may meet a strict approach from law enforcement authorities, particularly if the worker carries out a terrorist attack while employed. In addition, employing illegal Palestinian workers presents numerous other issues. For instance, paying in cash due to the employee’s non-registration with tax authorities, inability to pay National Insurance contributions, and consequently, a lack of legal and social protection in the event of a workplace accident.
Attorney Arieli notes that victims of a crime in Israel are entitled to file a civil claim for compensation that is not conditional on the existence of a criminal proceeding. This right ostensibly allows for filing a claim not only against the offending party but also against additional "responsible" parties to whom liability in the matter can be attributed.
A quick review of the case law does not reveal any clear examples of lawsuits against employers following terrorist events and by victims of hostilities, but it cannot be denied that the first case could arise.
A victim of a hostile act who proves that the terrorist who attacked him was employed illegally in Israel by an employer who was aware of this can certainly consider filing a civil lawsuit, the chances of which are not necessarily eliminated. The employer's liability for damages will likely be determined by questions such as:
· Is this a temporary employee with whom you are only superficially acquainted or a veteran employee?
· Was the lack of a work permit a "technical" or substantive matter?
· Did the employer know about the employee's past in a way that should have raised a "red flag"?
· Did the employer monitor the employees and be alert to suspicious signs?
· Was the attack carried out at the same time or near business hours? Is there a connection between the tools used to carry out the attack on the business (for example, stolen vehicles belonging to customers from a car wash, such as the attack in Ra'anana)?
Employer's liability towards a victim of a crime
What about insurance companies?
Contractor insurance policies do not cover cases of illegal workers being involved in terrorism. Both in terms of legal expenses for dealing with administrative fines or criminal charges, and the direct and indirect consequences of these proceedings. The insurance company will not bear the fees of the lawyers representing the contractor, nor will it cover fines imposed on him or compensation required to be paid in civil proceedings.
The insurance coverage for criminal proceedings in the contractor's policy concerns completely different situations. For example, an indictment following the death of a worker at a construction site. However, with regard to indictments for terrorist incidents, the policy will not be able to protect and provide a response.
Contractor insurance policies do not cover cases of illegal workers being involved in terrorism. Both in terms of legal expenses for dealing with administrative fines or criminal charges, and the direct and indirect consequences of these proceedings. The insurance company will not bear the fees of the lawyers representing the contractor, nor will it cover fines imposed on him or compensation required to be paid in civil proceedings.
The insurance coverage for criminal proceedings in the contractor's policy concerns completely different situations. For example, an indictment following the death of a worker at a construction site. However, with regard to indictments for terrorist incidents, the policy will not be able to protect and provide a response.
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