Microsoft Israel to Integrate Contract Employees as General Staff

Israeli law restricts contract employment to a nine-month period, but many companies use a loophole to fire employees after said period only to rehire them under the same terms

Meir Orbach 11:1517.06.19
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Microsoft’s Israeli research and development center will begin assimilating its contract employees as permanent staff members, according to an email sent to employees by the center’s General Manager Assaf Rappaport and reviewed by Calcalist.

 

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Contract employees, hired through a third party company, are legally considered non-permanent workers, exempting their employers from paying some social benefits. Israeli law restricts contract employment to a nine-month period, requiring the company to either let the employee go or hire them as permanent staff. Many companies, however, use a loophole to fire employees after said period only to rehire them again under the same terms.
Assaf Rappaport, the general manager of Microsoft's Israel R&D Center. Photo: Amit Sha'al
Assaf Rappaport, the general manager of Microsoft's Israel R&D Center. Photo: Amit Sha'alצילום: עמית שעל
“After a long and complex process we are beginning to hire outside contractors and professional service providers as part of the general staff of our Israeli R&D center,” Rappaport said in the email. According to the email, the company will absorb about 100-130 contract employees, starting next month. The center currently employs over 1,200 people in Herzliya, a town north of Tel Aviv.