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Israel Promulgates Workmen’s Compensation Law for Occupied Areas

May 18, 1976
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Israel promulgated a far-reaching workmen’s compensation law today for the administered territories. Labor Minister Moshe Baram, who estimated that the new legislation would benefit some 60,000 workers on the West Bank and Gaza Strip, said it reflected Israel’s humanitarian concern for the welfare of the local population.

The law, which takes effect Jan. 1, 1977, requires all employers in the territories to insure themselves against liability for injuries or disabilities sustained by their employes on the job. Premiums will amount to two percent of wages, payable by the employer. Under the new law, a worker who is totally disabled could receive a lump sum payment of up to IL 100,000. Proportionately smaller sums would be payable for lesser injuries. The law automatically entitles the worker to compensation even if there is contributory negligence on his part.

Baram said that employers will have a choice of commercial insurance firms in Israel or on the West Bank. He said that Jordanian and Egyptian companies would be considered if they submit applications to the Controller of Insurance and prove that they have sufficient assets to meet claims.

Heretofore, workers in the territories who sustained job-related injuries had no recourse but to sue their employers, not always with prompt or satisfactory results. The maximum compensation obtainable at present is about IL 18,000 on the West Bank and less in the Gaza Strip. Residents of both territories who are employed in Israel are covered by Israel’s strict National Insurance System to which both employer and-employe must contribute by law.

Baram conceded that Israel’s National Insurance provides substantially higher compensation than the new legislation for the administered territories. But he said the new law must be compared to the present coverage in the territories rather than to conditions in Israel. Any employer who fails to insure himself under the new legislation will be subject to fines and possible imprisonment. The law will be administered by local civil courts and by the military courts in the territories.

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