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IMPACT – MEDIUM
What is the change? Israeli consulate employees went on strike Thursday, suspending operations at consular posts around the world.
What does the change mean? No services will be provided during the strike, the duration of which is unknown at this point. This change will likely delay immigration processing, especially given that the workers went on strike shortly before holiday closures in September for Rosh Hashanah, Yom Kippur and Sukkoth.
BAL Analysis: Processing delays should be expected as a result of the work stoppage and the upcoming holidays. BAL will continue following the strike and will provide updates as more information becomes available about how long it is expected to last.
This alert has been provided by the BAL Global Practice group and our network provider located in Israel. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? The Ministry of Interior’s Population and Immigration Authority recently announced that it will begin conducting unannounced workplace inspections of companies that employ foreign workers, including refugees.
What does the change mean? The inspections will focus, among other things, on compliance with labor and immigration rules, work permit terms and geographical (place of work) limitations.
BAL Analysis: Companies face serious consequences if employees are found to be conducting activities that are not allowed on the permit or visa they hold. Employers are urged to conduct an internal audit to ensure they are in compliance with applicable labor and immigration laws. BAL is able to assist in this process.
What is the change? Authorities in Israel have clarified recent changes to the Hi-Tech visa with additional details on the duration, minimum salaries and processing times.
What does the change mean? A one-year Hi-Tech visa replaces the former Hi-Tech visa, and a 90-day Hi-Tech visa is available to visa-waivered nationals working for high-tech companies in Israel. Both require that the employee be paid double the Israeli average salary.
Background: The one-year Hi-Tech visa must be processed through an Israeli consulate, even for visa-waived nationals. The initial duration is one year, but can be extended in one-year increments up to a maximum of five years and three months.
The 90-day Hi-Tech visa is only available to visa-waived nationals and does not require consular processing. It has a duration of 90 days per calendar year; multiple-entry visas are available for repeat visits during a consecutive 90-day period.
BAL Analysis: Israeli-based tech companies should weigh these new options but be mindful that these visas are only recently introduced and some of the conditions and processing details may still be in flux.
What is the change? Israel has announced amended rules for its Hi-Tech Visa program that was launched in February.
What does the change mean? All applicants for Hi-Tech (HIT) visas must apply for a visa through an Israeli consulate when applying for the HIT visa. In addition, the normal Short Employment Authorization (SEA) visa period of 45 days has been extended to up to 90 days maximum per year for HIT applicants. Hi-Tech SEA (90 days) visa-waived applicants are exempt from visa processing at the consulate prior to entering Israel.
Background: Israel introduced the Hi-Tech visas in February to attract foreign tech talent. Authorities subsequently clarified the qualifying criteria for Hi-Tech employers.
BAL Analysis: In addition to planning for the longer processing time at consulates, high-tech foreign employees should plan for additional documentation gathering time as consulates may require medical records and police clearances, which can take time to obtain.
What is the change? Israeli government offices will close March 30-April 8 for Passover, suspending visa and work permit processing during the holiday period. Israeli consulates may also close or limit their hours.
What does the change mean? Applicants with time-sensitive applications should file them as soon as possible and anticipate delays when offices reopen.
BAL Analysis: Companies and individuals applying for visas and work permits should factor the holiday break into their plans. Those applying abroad should contact the relevant Israeli consulate for individual holiday schedules.
What is the change? The Israeli government has clarified the criteria it will apply to determine if a company qualifies for the new Hi-Tech, or HIT, visa.
What does the change mean? When a company registers with the registrar, the Central Statistics Bureau classifies the company. The Innovation Authorities then request this confidential information from the Bureau and review certain corporate information to determine if the company qualifies as a high-tech company.
Business impact: Companies will be considered based on funding, tax exemptions or public listing from the Innovation Authorities, or based on which industry they are in or based on their R&D costs. Israeli registered companies will be considered based on various factors, mainly on which industry sector they are in.
Background: The HIT visas, introduced through regulations earlier this year, are available only to visa-waived nationals working for high-tech companies registered in Israel. The visas are processed in six days and allow the employee’s spouse to work, although details are not yet clear.
If an Israeli-registered company has received either monetary funding, a tax exemption or a public listing on the Tel Aviv Stock Exchange as an R&D company from the Innovation Authorities in the last three years, it will qualify as a high-tech company.
If it has not received any of those benefits from the Innovation Authorities, it will still qualify if it is in one of the following industries: pharmaceutical product manufacturing, manufacturing of computers and components or electrical or optical components, computer programming/consultation/related services, research and development (not including social sciences), manufacturing of aircrafts or space ships and their components, or IT processing and data storage.
A company that does not qualify based on the above criteria may still be eligible as a high-tech company if its R&D costs exceed 7 percent of its overall sales turnover in the previous calendar year or if at least 15 percent of its employees work in R&D.
BAL Analysis: The clarifications are a welcome development that should help companies determine if they may qualify to use the new HIT visas. The relevant authorities will make the actual determination of whether a company qualifies when the visa application is submitted for a company under the HIT process.
What is the change? Israel has introduced a new long-term and multiple-entry business visa for Indian national businesspersons.
What does the change mean? Israeli consulates in India will be able to issue multiple-entry B-2 visitor visas, valid for up to five years and allowing up to 90 days per stay.
Background: The visas will apply to Indian businesspeople who are visiting Israel to develop their business. The permitted business activities include “participating in business meetings, engaging in negotiations, investing in Israel, buying or selling Israeli companies, participating in conferences and conducting market research.” The sponsoring company must be active and registered in the Indian Company Registrar for at least six months before the filing date of the B-2 visa application.
BAL Analysis: Indian national businesspersons may take advantage of the longer validity visas immediately. They are reminded that productive work of any kind is prohibited on the B-2 visas and would require a work visa. Prohibited activities include, for example, supplying products, providing services or serving as the company’s permanent representative in Israel.
What is the change? Israel has moved to provide new immigration incentives for high-tech companies bringing foreign experts to Israel.
What does the change mean? Companies that are recognized as “Hi-Tech Companies” by Israel’s Innovation Authority will be eligible to sponsor workers on a type of B-1 work visa called a High Tech Visa, or HIT Visa. The visas will initially be valid for one year and will be processed in six working days. Spouses of HIT visa holders will be eligible for general work authorization for the duration of the principle visa holder’s stay.
Background: The changes took effect under a set of regulations recently published by Israel’s Ministry of Interior.
Under the regulations, nationals of visa-waived countries working for hi-tech companies will be eligible for HIT visas, which will be processed in six business days. Visa applicants will be eligible to enter Israel immediately once their application is approved. The visa must then be processed in the employee’s passport at the Ministry of Interior within two business days of the employee’s entrance into the country. Authorities will review any previous stays in Israel in order to ensure compliance with all of the country’s immigration laws. The visas will be valid for one year, extendable for an additional five years and three months. Sponsoring companies seeking this route must pay the foreign employee at least 19,604 shekels (about US$5,570) gross per month, which is double the average salary in Israel.
The regulations also call for providing employment authorization to spouses of HIT visa holders. Spouses of HIT visa holders will be eligible for EAS visas if the HIT visa holder will be working in Israel for more than 90 days. Spousal visa duration will be tied to the principle visa holder’s work authorization and will allow spouses to work for any employer in Israel. There are no prevailing wage requirements for EAS visa holders. Applicants and their spouses will be required to be physically present at the Ministry of Interior for visa processing. It is anticipated that EAS visas will also be available to qualifying domestic partners, but this is not yet clear from the regulations.
BAL Analysis: While the steps are positive developments for high-tech companies in Israel, the new regulations are still unclear on some points, mainly in relation to spousal visa applications. BAL also continues to seek information about how companies can qualify as high-tech. BAL will provide more information to clients as it becomes available.
What is the change? Israel has increased its minimum prevailing wage requirement for foreign experts from 19,086 shekels to 19,604 shekels (about US$5,735) gross per month for 2018.
What does the change mean? The increase affects B-1 foreign experts, but does not affect foreign workers on short-term authorization permits or STEP visas.
Background: Israeli officials recently announced the new prevailing wage for foreign experts. Employers may include the following when calculating employee wages: gross salary, unconditional per diem payments, unconditional monthly relocation compensation, unconditional monthly international travel allowances, unconditional monthly bonuses and other unconditional monthly payments. Bonuses or other payments that are conditional on job performance or other factors cannot be included. Foreign nationals working in Israel under short-term authorization permits or STEP visas are covered under the minimum salary levels announced earlier in January.
BAL Analysis: Companies are required to meet the new 2018 prevailing wages for B-1 foreign experts immediately and should identify affected employees and adjust salaries accordingly.
What is the change? According to Israeli press reports, the Ministry of Interior is planning several changes to improve and speed work-permit processing for foreign workers in the high-tech industry.
What does the change mean? Among the changes, a streamlined online application process will be introduced for high-tech companies that are preapproved by the Innovation Authority. Additionally, the ministry will ease other rules for the high-tech sector, such as allowing work authorization for domestic partners of high-tech experts and allowing up to 500 foreign students to work without meeting prevailing-wage requirements.
BAL Analysis: The steps are positive developments for high-tech companies in Israel. BAL will update clients when more details are announced.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.