What is the penalty for employing a foreign worker without a permit in Israel?

Under Section 2(a) of the Foreign Workers Law 5751-1991, it is a criminal offence for an employer to employ a foreign national without a valid employment permit. The Ministry of Economy and Industry's Labour Inspectorate (Agaf Pikuah Al Ovdim Zarim) can issue administrative penalty notices without going to court. As of the 2026 penalty table, the fine is NIS 17,320 per undocumented worker for a first offence, rising to NIS 56,340 for repeat violations. Employers who knowingly employ undocumented workers face imprisonment of up to two years under Section 2(c) of the same law.

The Labour Inspectorate conducts unannounced workplace inspections and specifically targets the technology, hospitality, and construction sectors. Penalties for employing a worker without a permit are treated as separate violations from failing to provide mandatory health insurance — each carries its own NIS 17,320 fine per affected worker. The undocumented worker themselves is liable to deportation and a ban from returning to Israel. For more detail, see Israel Work Permit Guide: How Foreign Nationals Get a B/1 Work Visa.