A regulation withholding social welfare deductions from foreign workers if they fail to leave Israel after their visas expired was struck down by the High Court of Justice on Wednesday.
Six of the seven justices accepted the petition claiming that this regulation violated the property rights of a Chinese citizen who had worked in the construction industry for 12 years and was denied over NIS 90,000 in social welfare deductions after he failed to leave by the deadline.
The court gave the Knesset a six-month stay to develop an alternative regulation. If no such plan was introduced, all employers would need to settle the withheld funds with their former employees.
Social benefits are deducted from the salary of workers automatically by the employer and reserved in a bank account, but to incentivize foreign workers to leave Israel, these funds are withheld if they don't leave when legally required.
The majority opinion ruled that while the incentive was a proper purpose, the effectiveness of the incentive was brought into question. The plan was also disproportionate to the goal, since all the funds were retained.
Foreign worker funds
The money in the account was rightfully the foreign workers, and the denial of these funds was a violation of their property. It was also argued that there wasn't a single comparable regulation in other states.
Justice Noam Sohlberg wrote in dissent that the workers consensually agreed to the scheme as a condition of working in the country. Even if it did violate their property rights, it was proportionate to the violation of immigration laws.
Justice Minister Yariv Levin attacked the decision, saying that it proved that reform of the judicial reform was needed.
"The ruling gives the green light to tens of thousands of foreign workers to violate the conditions of their visa and remain in the country unhindered in violation of the law," said Levin. "The ruling reflects an extreme progressive values, in which foreign workers who remain in Israel contrary to their commitment and contrary to the law are preferable to preserving Israel's identity as the nation state of the Jewish people."
National Security Minister Itamar Ben-Gvir said that "today's cancellation [of the regulation] by the High Court is the exact proof why we are fighting with all our might to pass the judicial reform."
Foreign Workers Special Knesset Committee chairman Eliyahu Revivo called for an urgent hearing on the matter on Sunday.