Unlicensed Employment Agency Managers Avoid Conviction via Conditional Deals

Managers of an unlicensed employment agency supplying workers to Mei Eden secured conditional agreements to avoid criminal convictions, while a third was fined.

Source:Maariv
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ECONOMY // FINANCIAL FLOW

Two managers of an employment agency that provided workers to the Mei Eden plant in Katzrin without the required license have reached conditional agreements that will allow them to avoid a criminal conviction, subject to compliance with set conditions. This development occurred after the state initially opposed resolving their cases through this legal track. A third defendant in the case was convicted and fined 5,980 shekels.

Mei Eden itself was not a defendant in the case and was not accused of any offense. Its name was linked to the proceedings because workers via Spanis Transportation and Manpower Ltd. were employed in its factory yard in Katzrin.

The affair began in the summer of 2022. According to the indictment, during June and July of that year, Spanis provided manpower services despite not holding the required license to operate as an employment contractor.

After the Ministry of Economy identified the employment of workers through an unlicensed agency, a criminal investigation was launched and indictments were filed in the Haifa Regional Labor Court. One defendant served as the registered owner and manager, while the other two were active managers. The prosecution claimed they failed to properly supervise the company's operations.

Turning Point in Court: Conditional Agreements Without Conviction

Despite initial resistance and the state's insistence on a strict policy regarding unlicensed employment contractors, negotiations led by defense counsel Omri Leshem resulted in conditional agreements for two of the managers.

Under the terms, the two admitted to violating their supervisory duties. Each agreed to pay 14,400 shekels to the state treasury in ten monthly installments, avoid labor law violations for one year, and provide accountant or legal certification of compliance. If fulfilled, the files will be closed without a criminal conviction.

The third defendant did not join the conditional agreements. In August 2026, he confessed and was convicted of breaching his supervisory duty. In September 2026, the labor court sentenced him to a 5,980 shekel fine, payable in 12 installments, alongside a suspended sentence.

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