Immigration & Aliyah

What happens to an Israeli work visa if the sponsoring employer dismisses the worker or closes down?

An Israeli work visa is tied to the specific employer who sponsored it. When that employer dismisses the worker or ceases operations, the visa authorization lapses and the worker must leave Israel or find a new approved employer within the grace period. Under the Foreign Workers Law 5751-1991, the Population and Immigration Authority grants up to 60 days to find a new employer and transfer the work permit. Overstaying this grace period converts the worker's status to unlawful, triggering potential fines, detention, and deportation.

The principle of employer-tied visas in Israel is established by the Foreign Workers Law 5751-1991 and the regulations made under it. Most Israeli work visas — B/1 visas — authorize the holder to work only for the named employer in the specific occupation listed on the permit. When the employment relationship ends, whether through dismissal, resignation, or the employer's closure, the legal basis for the work authorization ends with it. The Population and Immigration Authority (*Rashut HaHagirah VehaKnisah*) provides a grace period of up to 60 days, during which the worker may seek a new employer and apply for a permit transfer. The transfer requires the new employer to file a fresh work permit application and is not automatic.

Foreign workers dismissed in Israel often do not realize that their dismissal simultaneously affects their immigration status. Practical steps are time-sensitive: the worker must notify the Population and Immigration Authority of the employment termination, avoid working without authorization during the transfer process (a criminal offence under Section 2 of the Foreign Workers Law), and obtain written documentation of the dismissal and its cause. Labor rights — including severance pay, unpaid wages, and compensation for unfair dismissal — are entirely separate from immigration status and can be pursued through the Israeli labor courts regardless of visa status. Specialized categories such as agricultural workers and caregivers have sector-specific transfer rules. Our full guide to Israeli work visas explains the permit categories and the application process in detail.

⚖ In Practice
  • Governing law: Sections 1A, 2, and 13, Foreign Workers Law 5751-1991 (Hok HaOvdim Zarim); Work Permit Regulations 5761-2001
  • Competent authority: Population and Immigration Authority (Rashut HaHagirah VehaKnisah) — online portal and regional offices
  • Grace period: Up to 60 days from termination of employment to find a new employer and apply for permit transfer
  • Penalties for overstay: Approximately NIS 1,000–2,500 per day of unlawful stay (2026); potential deportation and re-entry bar of 5–10 years
  • Labor rights: Severance, unpaid wages, and unfair dismissal claims survive the visa lapse and can be filed with the Regional Labor Court within seven years

From the full guide: Work Visas in Israel: A Complete Guide for Foreign Nationals


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