Client updates

Employers that want to use technological surveillance measures to monitor and track employee performance remotely must be diligent about formulating a clear policy, informing employees, and using these means reasonably and proportionately.

It is surprising to realize Israel does not have a general regulatory binding framework for the approval of such transactions as they pertain to national security, like CFIUS in the United States , the recent UK National Security and Investment Act 2021, or similar bodies in developed countries. As a result, there are no broad cross-sector consolidated controls on foreign investments.

The SEC is expanding the application of US Foreign Corrupt Practices Act provisions. It is commencing law enforcement proceedings against non-American companies operating outside the United States and against actions that merely raise concerns of acts of corruption. Companies with international operations must familiarize themselves with the FCPA’s provisions and prepare accordingly.

An EUR 1.2 billion fine was imposed on Meta after the EDPB ruled the company was systematically transferring the personal data of millions of Facebook users from the European Union to servers in the United States in violation of the European GDPR.

New provisions set out the licensing framework for the provision of payment services, designed to encourage new players to enter the Israeli market and offer payment services while providing broad protection to consumers. The law will apply to companies providing payment services, credit service providers, acquirers, and more.

Law enforcement authorities in the United States are adopting a policy of lenient law enforcement measures against corporations that cooperate during investigations, document their activities, and implement compliance programs. This policy also applies to Israeli companies operating in the United States.

In order to contend with the meager supply of investment advice or portfolio management services via technological interfaces, the Israel Securities Authority has published a proposed amendment to the directive focusing on two main services: trading signal services and social trading. Both of these services rely on digital media.

The regulations grant several new rights to the relevant data subjects, when the database contains information transferred from the European Economic Area (EEA) to Israel, including the data subject’s right to delete information and a broader right of review.

The regulations grant several new rights to the relevant data subjects, when the database contains information transferred from the European Economic Area (EEA) to Israel, including the data subject’s right to delete information and a broader right of review.

To ensure the agreed arrangement is appropriate and does not include a waiver of the buyer’s cogent rights under Israeli law, several principles should be taken into account, such as if the agreement reflects a reasonable assessment of the inherent risks in the event of disputes between the parties.

For employers that discover gender wage disparities in their organizations, the Equal Employment Opportunities Commission recommends taking action to appoint an implementation team comprised of both senior management representatives and employees, for the purpose of preparing a multi-year work plan to promote equal pay and reduce gender wage disparities.

Companies should promptly settle unresolved issues with the Registrar of Companies in order to avoid sanctions, fines, and difficulties obtaining credit.

The Israeli Supreme Court has ruled that legal advice given to directors who are members of an audit committee or an independent committee is not protected by attorney-client privilege and that the company (and the trustee who is subrogating for the company) own the legal advice. Consequently, a trustee appointed after a company collapses may receive documents and correspondence exchanged between directors and the company’s attorneys.

The publication of the questionnaire aligns with global trends and reflects the importance of this subject for investors. According to the TASE press release, only 70 companies currently publish full ESG reports.

The monitoring of greenhouse gas emissions is not only important for protecting environmental quality, but it also offers commercial benefits, such as monitoring energy and supply chain expenses and participating in carbon emissions trading markets. 

The update will take effect already in the salaries for April 2023 and will affect the sums of social contributions to provident funds and severance pay, vacation pay, overtime pay, and sick pay.

A few months after ChatGPT became a popular tool for millions of users, users began filing lawsuits alleging violations of users’ privacy and data security breaches. The conclusions from these lawsuits are relevant to all companies engaging in the development and assimilation of AI technologies.

At the conclusion of a proceeding conducted over about two years, an Israeli court recommended that the class plaintiffs withdraw their actions in light of the legal difficulties and since there is no reasonable possibility that the legal questions will be  ruled in favor of the plaintiffs. The plaintiffs accepted the court’s recommendation, and the court dismissed in limine 66 class actions.

The Ministry of Finance and the Histadrut (General Federation of Labor in Israel) reached some understandings regarding the framework agreement for the public sector for the years 2020 to 2027.

A corporate inversion is a process of changing a company’s holding structure, largely with the intention of turning an existing company into a foreign company by positioning a foreign company as a parent company of the Israeli company and enabling the Israeli company to expand into new markets in the international arena.