NEWS
UPDATES
A New Amendment Imposes New Obligations concerning the Employment of Handicapped Persons by Suppliers entering into Contracts with the State
A New Amendment Imposes New Obligations concerning the Employment of Handicapped Persons by Suppliers entering into Contracts with the State

Recently, an amendment to the Public Bodies Transactions Law, 5736-1976, has been published in the Official Publications. 

This amendment imposes new obligations on entities which are interested in entering into contracts with public bodies for the sale of assets or for the provision of services – such as via a tender (or transactions which are not entered into via a tender). 

The amendment adds Section 2B1 to the Law and imposes on the supplier an obligation to give fair representation to handicapped persons, as a condition to the transaction with the public body.  A public body includes the State, a body operating under a budget, a public institute and other entities as mentioned in the Law.

In the legislative proposal, it is explained that the rate of employment among handicapped persons, and especially those with severe handicaps, is low and certainly when this is compared to persons without handicaps. 

It is also mentioned that in recent years there has been increasing awareness about the importance of integrating persons with handicaps into the work force. 

This is due to not only to the advantages which employment provides to the handicapped individual including a feeling of self-worth, social environment and economic independence, but also to the ability of such employees to contribute to society and the economy.   

Accordingly, there have been put into place – inter alia via legislation – arrangements the purpose of which is to offer an equal opportunity to persons with handicaps, and this particular legislative proposal is designed to be an additional part of these arrangements.

According to the new amendment to the Public Bodies Transactions Law (Amendment No. 11), there will be a prohibition on a public body to enter into a contract with a supplier for the sale of an asset or the provision of services, unless the supplier filed a declaration in writing concerning the employment of handicapped persons. 

The declaration to be provided by the supplier must state that one of the following two conditions exist within the supplier:

 Section 9 of the Equal Rights for Handicapped Persons Law does not apply to it, namely, it does not employ more than 25 employees or the Minister of the Economy and Industry has exempted it from the obligation to give fair representation to handicapped persons.
Section 9 of the Equal Rights for Handicapped Persons Law applies to it and the supplier complies with the same.  Namely, that it employs more than 25 employees and it gives fair representation to handicapped persons.  If the supplier employs 100 employees or more, it must also declare that it has complied with the obligation on it to approach the Managing Director of the Ministry of Labor and Social Affairs to verify implementation of its obligations under the said Section 9 and, if required, has received instructions on how to implement the same.  If the supplier received such instructions, the supplier should declare that it has in fact implemented them.

It should be mentioned in this respect that the Managing Director of the Ministry of Labor and Social Affairs will publish on the website of the Ministry a list of those suppliers which have approached it for verifying implementation of their obligations under Section 9 of the Equal Rights for Handicapped Persons Law. 

The Minister for Labor and Social Affairs will report to the Knesset once per annum on the number of such approaches which have been received at their offices.

In parallel, Amendment 15 to the Equal Rights for Handicapped Persons Law was recently published, which imposes an obligation of fair representation to handicapped persons on public entities.  According to this amendment, 5% of the entire number of employees in public entities is to be employees with severe handicaps.

For previous Newsletters on the subject of handicapped persons, please refer to: 

Employment Law: New Expansion Order issued by the Ministry of Economy concerning the Employment of Persons with Disabilities

‚ÄčThe Last Date for Implementing Obligations for Accessibility to Internet Sites by Handicapped Persons is Approaching