Israeli Public Transport Authority Imposes Heavy Fines on Operators Hiring Drivers Through Contractors
The Israeli National Authority for Public Transportation has announced a crackdown on operators who employ bus drivers through contractors, violating direct employment regulations. In a letter sent on Tuesday, Authority Director David Yosef warned public transport operators, service contractors, and third parties that they will face fines of 10,000 shekels for each trip driven by improperly employed drivers. This penalty is calculated per trip rather than per driver, potentially escalating fines to hundreds of thousands of shekels.
The decision follows investigations and reports revealing that some operators continue to use employment practices contrary to guidelines issued in February. The Authority emphasized that direct employment of drivers is crucial for maintaining service quality and protecting drivers' social rights and wages. The letter clarified that the responsibility for compliance with competitive tender requirements, including direct driver employment, lies entirely with the winning operator.
To enforce these rules, the Authority plans to increase oversight through surprise inspections at company offices and in the field, demand ongoing data and documentation from operators, and cross-check information with government databases, including payroll and employment reports. Operators are now required to review their employment practices to ensure full compliance with tender conditions and operating agreements to avoid accumulating fines that could reach millions of shekels.
The Workers' Power organization, representing drivers at Superbus, Electra Afikim, and Dan Darom, welcomed the Transport Ministry's decision. The organization stated it had prevented the use of contractor drivers in its member companies, noting that replacing company drivers with contractors had harmed service quality, as confirmed by Transport Ministry inspections. They pledged to continue opposing attempts by companies to replace Israeli drivers with foreign workers.
