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Israel Cabinet Approves Penalties for Failure to Pay Wages on Time

A measure providing penalties for failure to pay wages on time and calling for the payment of six months’ wages to every worker in the event an employer goes into bankruptcy or liquidates his business was adopted by the Israel Cabinet today. The provision against withholding an employee’s wages is in keeping with Jewish Biblical tradition.

A Ministerial Committee will decide the extent of the penalties for late payment of wages and other details. It has been instructed to decide also which deductions may be made by the employer from wages without prior consent of the employee. So far the only automatic deductions recognized are those for income tax and for national insurance. A draft bill embodying these principles was introduced two years ago by Hapoel Hamizrachi deputy Moshe Una.