Employ Candidates Compliantly in Israel

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  1. Overview:Israel
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global Employer of Record (EOR) in Israel

What Is a Global Employer of Record?

The global Employer of Record (EOR) service is a new way for companies to hire workers in other countries. Companies can reduce administrative costs and improve compliance with local labor laws using the GEO (Global Employer of Record).

Previously, finding workers from other countries was time-consuming and required extensive research into local laws and regulations. With the GEO, employers can employ their pre-selected qualified workers worldwide in just minutes without taking on the cost and risk of establishing a local entity. The global EOR also provides valuable HR support and compliance assistance, making it easier for businesses to thrive in a competitive global marketplace. The Global EOR offers employers access to a single point of contact for all their foreign employment needs, from complying with local labour laws to managing payroll and benefits.

What Services Does Employer of Record (EOR) Provide?

A Global Employer of Record usually handles part of BPO services, particularly human resources-related issues regarding global remote personnel. These issues include but are not limited to:

  • Payroll management;
  • Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
  • Handling employment contracts:
  • Background, education, and other checks;
  • Onboarding and termination processes, as well as employee’s compensation;
  • Arranging visas and work permits for employees;
  • Ensuring the working process is organized under local labor laws;
  • Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
  • Process maps, employment guides, and other documentation.

Why You Should Look for an EOR for Your Business Expansion to Israel

1. Hiring a candidate for a new location

Today, businesses are looking for ways to save money and increase efficiency. One solution is the EOR model, which allows companies to hire the best talent regardless of location. By outsourcing work to an EOR, a business avoids establishing an entity and complies with global regulations. This makes it an ideal solution for companies that need to hire workers in multiple locations but do not have the internal resources or infrastructure to support them.

2. Test the New Market with a Global EOR without Making Long-term Investments in Israel

Stepping into a new market can be risky, both financially and reputationally. A Global Employer of Record (EOR) in Israel will take on the risk for you, making expanding your business into new markets easy and affordable.

An Employer of Record (EOR) is a legal entity that allows you to test a new market before incorporating. It also protects you from liability and other issues arising because you operate in a different state or country.

If you plan to expand your business into another state, you can use an EOR to test the waters first. Think of an EOR as a low-risk “try before buy”, allowing you to see if the new location is a good fit before incorporating. The process doesn’t require additional investment or paperwork on your part. You can also use an EOR to protect yourself from liability issues while testing out a new location or service offering.

3. A Global Employer of Record Is a Better Alternative for Entity Set Up in Israel

The Global Employer of Record offers a simple, low-cost solution for companies looking to expand their operations in a foreign country.

Companies can work with a local partner in their chosen country and utilize the services of an Employer of Record (EOR). This provides an alternative to setting up an entity or subsidiary, as it allows companies to sidestep the administrative and financial burdens involved in establishing a legal entity.

The EOR will be responsible for all tax obligations and regulatory compliance requirements on behalf of your company. The EOR engagement also allows you to avoid additional costs associated with hiring local staff and other expenses such as office space and equipment rentals.

Partnering with an Employer of Record, you will retain full control over your employees and business operations while benefitting from substantial cost savings and avoiding non-compliance risk. 

4. Avoid  Independent Contractor Non-compliance and Misclassification Risk

Employment and tax laws vary from country to country. You must comply with all local labor laws if you hire a worker directly. The penalties for non-compliance are steep and can include fines, imprisonment, and loss of your business license. In some countries, employers must pay payroll taxes for all employees, regardless of whether they work for the company in-house or remotely.

Labour and tax authorities in the Czech Republic can impose penalties for misclassifying employees as independent contractors, including fines and back taxes. You could risk violating employment and tax laws if you plan to grow your business by hiring international contractors. A global EOR can enhance compliance by hiring contractors on your behalf and following all local in-country labour requirements.

Global EOR Solution by Acumen International: Employment Done Right and Fast

Acumen International’s EOR solution lets customers tap into the local workforce without setting up a new office or bank account. Acumen will take care of the employee onboarding, payroll, and compliance with local tax laws and regulations, freeing customers to focus on the employee’s day-to-day tasks.

Our global employment cost estimation technology, coupled with our global presence, experience in managing global payroll & local compliance and immigration regulations, and knowledge of local benefits and taxes, allows our clients to optimize the management of their extended workforce. Acumen’s global  EOR services are delivered leveraging a single global platform that ensures data accuracy across all countries of operation.

To help your organization legally onboard and payroll a workforce in Israel, Acumen International offers a global employment solution via our Global Employer of Record (EOR) designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Israel to conduct business there.

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Acumen International offers a global PEO and payroll solution to take care of all payroll details while ensuring full compliance with in-country labor and taxation laws.

Employ your Selected Workforce via Acumen Employer of Record (EOR) in Israel

As a Global Employer of Record services provider, Acumen International helps businesses to legally engage and pay their selected highly skilled professionals in Israel.

Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves end employers and service companies representing international clients as a global employment organization.

Acumen’s Global employment services are designed to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion to help you quickly enter new global markets without legal and HR compliance risks
  • Local support for international clients and their ex-pat employees

Acumen’s Employer of Record (EOR) service in Israel offers an efficient and inexpensive alternative to direct hire. Our global Employer of Record solution allows companies to operate in Israel and in 190 international markets, where we serve our clients without registering as a local business entity.

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Legally onboard and payroll employees in Israel via Acumen Global Employer of Record (EOR)

Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating their local and expat workforce in Israel on your behalf risk-free and cost-effectively.

If you want to reinforce your internal team with the expertise of Israel-based global talent, or if you have already selected a local candidate to work for you remotely and in full legal compliance in Israel, our global EOR solution is the ideal choice for you.

You can trust Acumen to handle your workforce management’s global employment and HR details in Israel to ensure full compliance with in-country employment laws.

Acumen’s Global Employer of Record (EOR) solution was designed to help international companies like yours expand their global reach and engage the brightest global talent for their projects.

In addition to legally onboarding local citizens, we can organize work permits and business visa sponsorship for your expatriate team via our Global Employer of Record and employ them on your behalf once legal permissions have been attained.

Partner with Acumen International, and let us help you handle your global employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Israel and 190 countries worldwide where we serve our international clients.

Reduce risks while expanding your business without establishing your legal entity in Israel. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.

Trust us to handle the global employment and HR side of your workforce management in Israel so you are sure that none of these nuances is missed and that your employees are employed and payrolled properly and compliantly on your behalf.

Spotlight on Israel

  • Location – formally known as the State of Israel, a country in Western Asia located on the Mediterranean Sea’s southeastern shore and the Red Sea’s northern shore. It has land borders with Lebanon to the north, Syria to the northeast, Jordan to the east, the Palestinian territories of the West Bank and Gaza Strip to the east and west, respectively, and Egypt to the southwest.
  • Capital – Jerusalem
  • Population – 9,19 million
  • Official language – Hebrew
  • Recognized minority languages – Arabic
  • Government – Unitary parliamentary republic
  • Currency – Israeli shekel (ILS)
  • Dominant religion – Judaism
  • Labor force – 4.13 million people accounting for 60.7% population as of 2020
  • Exports – $60.6 billion (2017). Exportable goods: cut diamonds, refined petroleum, pharmaceuticals, machinery and equipment, medical instruments, computer hardware and software, agricultural products, chemicals, textiles, and apparel.
  • Main export partners: Hong Kong, United States, United Kingdom, China, and Belgium.
  • Imports – $66.76 billion (2017). Import products: raw materials, military equipment, motor vehicles, investment goods, rough diamonds, crude petroleum, grain, and consumer goods.
  • Main import partners: United States, China, Switzerland, Germany, United Kingdom, Belgium, Netherlands, Turkey, and Italy.
  • Public holidays – Rosh Hashanah, Yom Kippur, Succoth, Passover, Shabuoth, Independence Day.

Employment in Israel

In general, Israeli law does not require an employment contract to be in writing. However, each employer is required to provide all new employees (and any existing employee upon the employee’s request) with a written notification form regarding certain employment terms and to update all such employees, in writing, regarding any changes in the employment terms, everything as mentioned in the Notice to Employee Laws and relevant regulations.

An employer must give his foreign employee a signed employment contract in a language that he understands, setting out the details of his employment. The contract must also include contact information concerning the filing of complaints with the Ombudsman of Foreign Worker Labour Rights in the Ministry of Industry, Trade, and Labour.

  • Are you seeking to reinforce your existing team with the expertise of Israel-based international employees?
  • Have you already selected a candidate from Israel?
  • Do you want the prospect to work for you remotely from Israel?
  • Would you prefer to hire shortly and stay compliant with Israeli legislation?

Our global employment solution is the way to go!

Like every other country, Israel has its employment specifics. Abiding by the local employment law ensures 100% compliance.

By entrusting local tax and law subordination as well as workforce employment and management to an authority with extensive expertise, you safeguard professional handling of all things legal in Israel on behalf of your company.

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