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This chapter focuses on the effect that outsourcing, as a subset of privatization, has had on employment relations in Israel. Particularly, it highlights the adverse, and perhaps counter-intuitive, effects that the law has had on the plight of Israeli contract workers. Israeli governmental agencies and local councils have turned to outsourcing as a means to circumvent post limits and due to the Ministry of Finance’s pressures to increase “flexibility” in the civil service. Intriguingly, paradoxically, and tragically, the law’s effort to regulate this growing phenomenon has led employers to resort to tactics which have redefined agency workers (teachers, nurses, etc.) as workers subject to the “outsourcing of services” (teaching, nursing, etc.). This has moved such workers into a legal void, depriving them of rights and protection. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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