Fischer Behar Chen Well Orion & Co
Founded in 1958 – and celebrating its 60th anniversary in 2018 - Fischer Behar Chen Well Orion & Co (FBC) is one of Israel's premier and largest full service law firms. FBC acts for prominent multinational and Israeli clients and offers professional excellence and personal attention across the spectrum of multidisciplinary legal services. The firm's attorneys pride themselves, first and foremost, on their business and legal acumen and ability to bring matters to closure, integrating commercial sensitivities of attorneys experienced in handling large-scale matters with in-depth knowledge of first-class practitioners.Show more
The Law for the Reduction of Cash Use, which came into force on 1 January 2019, imposes certain restrictions on the use of cash and cheques that do not name the payee. The law aims to reduce cash transactions in an effort to fight financial crime and money laundering and foster the use of more modern and efficient payment methods. Violation of the law may constitute a criminal offence, resulting in financial penalties and imprisonment.
The second half of 2018 was characterised by a sharp decrease in the number of equity and debt initial public offerings in Israel and a significant rise in bond yields. The Tel Aviv Stock Exchange (TASE) and the Israeli Securities Authority continue to promote various initiatives to encourage non-Israeli issuers to list on the TASE, including the publication of a bulletin clarifying the rules that apply to the public offering of securities, listing and delisting and ongoing disclosures by dual-listed companies.
The Corporate Finance Department at the Israel Securities Authority recently issued its Staff Legal Bulletin on dual-listed companies. The bulletin is a summary of the most up-to-date information on the issuance, reporting, listing and delisting of dual-listed companies and is intended to clarify and reflect these processes for dual-listed companies and companies considering dual listing.
An inter-ministerial committee was recently set up to promote the establishment of publicly traded funds for investment in infrastructure. The committee was formed to examine and recommend measures and actions that would encourage the establishment of traded infrastructure funds in order to increase the availability of financing sources for infrastructure projects, reduce the financial costs of these projects and enable small investors to directly participate and own these projects.
The Supreme Court recently confirmed that the liability for breaches of reporting obligations in the secondary market by dual-listed companies is governed by the securities laws of the foreign trading jurisdiction. The governing law with respect to the liability of a dual-listed company's external auditors is also the law of the foreign jurisdiction in which the company's shares are traded.
The Israeli Securities Law was recently amended with the goal of making the Tel Aviv Stock Exchange (TASE) more competitive, efficient and profitable, by changing its ownership structure. This change of ownership structure will allow private investors, in addition to institutional investors, to acquire means of control over TASE. This can be viewed as a privatisation of sorts, as TASE is Israel's only stock exchange and is widely viewed as a national asset.
Israel has seen a growing trend in debt initial public offerings by US and Canadian real estate companies with income-producing real estate, as well as in the listing of the bonds for trading on the Tel Aviv Stock Exchange. In recent years, more than 30 such real estate companies have completed public debt offerings in Israel, the large majority of which were initial public offerings.
In a recent decision, a district court in Israel ruled in favour of Broadcom Semiconductor Ltd and rejected the Israeli Tax Authority's claim that Broadcom Semiconductor was required to pay additional taxes of NIS100 million due to the deemed sale of its main functions and assets to affiliated companies. In its decision, the court ruled that a change of a company's business model would not necessarily be deemed as a sale of its assets (and, in particular, a sale of its intellectual property).
The Organisation for Economic Cooperation and Development (OECD) set a goal to deliver by 2020 a final report that includes a consensus approach with respect to the challenges of the digital economy, both the allocation of taxation rights (pillar one) and Base Erosion and Profit Shifting issues (pillar two). What are the latest proposals of the OECD and where does Israel stand?
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Employment & Benefits
Israeli employment laws set certain limitations on employers' right to terminate employees. For example, according to case law, the termination of employment relationships requires a hearing process, for which specific guidelines have been developed by the labour courts. Employers' obligation to hear an employee before making a final decision regarding their future employment results from employees' basic right to be heard and derives from the rules of natural justice and bona fide obligations.
Pursuant to Israeli employment law, an employer cannot employ workers on their weekly rest days unless it obtains a special permit from the Ministry of Labour and Social Affairs. On commencement of their employment, employees can notify their employer that they will not work on weekly rest days in accordance with their religious beliefs. Employing workers on their rest day without a permit is a criminal offence, which in certain cases may result in fines for the employer's officers and managers.
Israeli employment law is a blend of continental and common law legal systems. Employment protection laws – a set of laws that provide minimum conditions for all employees, irrespective of their wage levels – are at the foundation of employment law in Israel. Failure to comply with these requirements may constitute a criminal offence and further expose an employer to liability for damages.
Collective labour law in Israel is a dynamic and constantly evolving field. In the past decade, many important changes have taken place with respect to collective labour law which have greatly influenced the scope of organised labour. This article examines the legal aspects of organised labour, the protection of the right to organise and the support granted by the labour courts to organisers and the definition of collective bargaining units and workers' organisations.
Israeli and international organisations seeking to employ foreign workers in Israel in management positions or in positions that require special expertise or training must apply for a foreign expert work permit (B/1 permit) from the Population and Immigration Authority. The employment of foreign workers without a proper work permit constitutes a criminal offence, which may lead to fines and other criminal penalties being levied on the employer and its senior management, as well as on the employees.
Insolvency & Restructuring
This update has been removed on request by the contributing firm.