The new expansion order in the guarding and security industry
Jul 12, 2022
By: Adv. Shkema Levi Ezra / Head of Claims and Contracts Department
The Minister of Economy recently signed an extension order in the security and guarding sector, aimed at improving employment conditions for workers in the field. The order is highly relevant to the construction industry, as contractors and developers frequently engage security and guarding companies at their sites.
As is well known, the Law for the Enhancement of Enforcement of Labor Laws, 2011, establishes that the obligations of an employer who is a contractor toward their employee “also apply to the service client.” It is therefore important to highlight for you the main points and changes arising from the new extension order in the security and guarding sector.
By Attorney Shikma Levi Ezra / Manager of the Claims and Contracts Department
The Minister of Economy recently signed an order to expand the security and guarding industry, which aims to improve the employment conditions of workers in the field. The order is very relevant to the construction industry, as contractors and developers frequently communicate with security and guarding companies on their sites.
The Law for Increasing Enforcement of Labor Laws, 2011, states, as is well known, that " the duty of an employer who is a contractor, towards his employee... shall also apply to the person ordering the service." It is therefore important for us to reflect to you the main points and changes arising from the new expansion order in the guarding and security industry.
"Good news for security industry workers"
The signing of the order is a direct continuation of the general collective agreement in the security and guarding industry from March 2021 and the stipulation presented by the Histadrut that the agreement will enter into force only upon its expansion.
Among the main issues that arise from it are the 10% increase in employee wages and a higher wage increase for employees with special training (according to the classification and level of training). The date of implementation of the extension is set for September 1, 2022.
The minister described the signing of the order as " good news for workers in the security and guarding industry in the economy ." The chairman of the Histadrut agreed, adding that the move will help " strengthen workers at low wage levels " and help prevent wage erosion among those employed in the industry.
The signing of the order is a direct continuation of the general collective agreement in the security and guarding sector from March 2021, and of the condition presented by the Histadrut that the agreement would come into effect only upon its extension.
Among the main issues arising from it are a 10% wage increase for employees and a higher wage increase for employees with special training (according to the type and level of training). The effective date of the extension was set for September 1, 2022.
The minister described the signing of the order as good news for employees in the security and guarding sector. The chairman of the Histadrut echoed these remarks, adding that the move will help “strengthen employees at lower wage levels” and assist in preventing wage erosion among workers in the sector.
The dramatic issue in the new expansion order is, as stated , the determination of a minimum wage for employees in the security and guarding industry at a rate of 10% more than the minimum wage according to all laws (including future updates).
As of April 2022, this is an hourly wage of 32.03 NIS and a monthly wage of 5,830 NIS. With regard to employees who have completed training or courses, and are employed in positions that require the aforementioned training/courses, a higher minimum wage has been set.
For example, a graduate of the "Advanced Security Guard B" training is entitled to a salary of 30% above the minimum wage, and a graduate of the "Advanced Security Guard A" training is entitled to a salary of 40% above the minimum wage. Graduates of the "Jerusalem Area Security Guard" or "Senior Security Guard B" training are entitled, according to the expansion order, to an hourly/monthly salary that is already 60% higher than the minimum wage.
The expansion order leaves room for higher wage rates for additional training, which will be discussed in the future within the framework of the "monitoring committee." It was determined that the training that the employee undergoes will be permanent and will accompany him in his work, even when moving between employers.
Alongside the special minimum wage, the new expansion order in the security and guarding industry deals with socio-economic issues such as provisions for a further education fund, the amount of the holiday gift, weekly rest (and additional compensation for working during the weekly rest hours), and provisions for a provident fund for a pension.
The minimum wage according to the decree
Many contractors and developers contract with security and maintenance companies. As the "service providers", they are responsible for the terms of employment of the contractor's employees when the following conditions are met:
· The service is provided by at least 4 employees.
· The service is provided for at least six months.
· The employee or labor supervisor gave the service customer a notice regarding a violation of rights.
Please note that liability is not only civil but also criminal. The Law to Increase Enforcement of Labor Laws imposes criminal liability on service providers to the extent that violating the employment conditions of contractor employees can result in financial sanctions. This includes violations of various sections of laws such as the Minimum Wage Law, the Youth Labor Law, the Wage Protection Law (which deals with wage garnishment, for example), the Annual Leave Law, or the Working Hours and Rest Law.
See, for example, what was said on the subject by the Labor Court last August: " The service customer is not relieved of his responsibility in accordance with the provisions of the Law for Increasing Enforcement, where he allows the main contractor to employ "subcontractors", while supervising the employment conditions of the main contractor's employees only, and turning a blind eye to the employment conditions of the employees who actually perform the work on his premises, through a third party " (Sa'sh 57713-12-16).
The contractor/developer's responsibility for the rights of the contractor's employees
The Law to Increase Enforcement of Labor Laws states that service providers (in the construction industry - contractors/developers) must take reasonable measures to prevent infringement of the rights of the contractor's employees employed by them.
Dear contractors and entrepreneurs, take precautions. Remember that a contractor insurance policy does not provide coverage against claims by subcontractors for violations related to their wages .
You should know that the law places a responsibility on you to ensure that there is an effective way for employees to report violations of their rights, and that there is a mechanism for clarifying the information in the report. Contractors/developers are required to inform employees of subcontractors about the ways in which they can report violations of their rights by their employers.
It should be noted that the law also provides contractors/developers with protections against claims filed against them in this regard. This is, for example, to the extent that the violation of rights was fully remedied immediately or there was good faith reliance on periodic inspections conducted by a qualified wage inspector. Similarly, the cancellation of the contract due to failure to remedy a violation within a reasonable period of time may serve as a legal argument in your defense.
What should the contractor/developer do?
In conclusion,
The expansion order in the security and guarding industry embodies a significant improvement in workers' rights in this industry. Since security and guarding companies frequently provide their services to contractors and developers, often in the context of guarding construction sites, and since contractors/developers have responsibility for violating the rights of subcontractors' employees, it is important to be aware of the changes.
The expansion order in the security and guarding industry embodies a significant improvement in workers' rights in this industry. Since security and guarding companies frequently provide their services to contractors and developers, often in the context of guarding construction sites, and since contractors/developers have responsibility for violating the rights of subcontractors' employees, it is important to be aware of the changes.
מסמכים
