IC Compliance Success: KellyOCG & CWS Israel
See how CWS Israel helped KellyOCG and their client avoid over $5 million in misclassification risks with a proactive, expert-led compliance process for independent contractors.
The Challenge
Key Metrics
- Estimated risk per misclassified contractor: $200K–$250K
- Potential total risk avoided: $5M+
- Additional savings from avoided government fines and social payments
The Solution
- Annual compliance checks on all independent contractors
- Two-part surveys and interviews with each contractor and their supervisor
- Custom risk assessment tool based on Israeli labor law
- Expert legal oversight and continuous process improvement
Implementation and Results
- 74 interviews over three years
- 37 independent contractors assessed
- Systematic, unbiased status evaluation
- $5M+ in misclassification risk avoided
- Zero compliance breaches
- Enhanced workforce transparency and peace of mind
Key Learnings
- Proactive compliance checks are essential to avoid financial and reputational damage.
- Expert partners like CWS Israel provide critical local knowledge and legal expertise.
- Ongoing assessment ensures workforce integrity in a complex regulatory landscape.
About CWS Israel
CWS Israel is a leading contingent workforce services provider, trusted by the world’s largest MSPs and global employers.
Learn more about our partnership with KellyOCG
Resources
Frequently Asked Questions
IC (Independent Contractor) compliance refers to ensuring that freelancers or self-employed (עוסק מורשה או עוסק פטור) individuals meet the legal criteria to work independently, without being classified as employees. In Israel, misclassification can lead to legal exposure, retroactive benefits, and tax liabilities—so proper IC compliance is critical for risk mitigation.
CWS Israel helps Israeli and international clients navigate Israel’s strict IC classification rules by conducting compliance assessments, managing onboarding, and offering compliant engagement models—whether via true IC structures or transitioning contractors into fully employed (EoR for International Clients without a local entity) roles.
KellyOCG is a global Managed Service Provider (MSP) in the staffing industry . The firm needed to ensure that their client’s IC engagements in Israel adhered to local laws, and minimising misclassification risks. The challenge was maintaining the flexibility of engaging contingent workforce to conudct independent work while staying fully compliant with Israeli employment law.
CWS Israel partnered with KellyOCG to assess the contractor’s risk profile, propose a compliant engagement structure, and recommend a solution to keep the worker and client fully protected under Israeli law—while preserving the working relationship.
Yes. Through CWS Israel’s EoR or IC compliance solutions, foreign companies can engage talent in Israel without establishing a local entity, while ensuring full compliance with local labour and tax regulations.
Misclassification can result in retroactive claims for employee benefits, tax penalties, fines from the National Insurance Institute, and potential lawsuits. Partnering with a local expert like CWS Israel significantly reduces these risks. Try our misclassification risk assessment calculator to measure your company’s risk exposure.
Conversion is advisable when the engagement resembles an employer-employee relationship (e.g., fixed hours, exclusivity, direct supervision).
CWS Israel combines deep local legal expertise with tailored solutions for each client. We don’t just offer a yes/no risk assessment—we work with you to build a sustainable and compliant engagement model that fits your business goals.
Ready to Protect Your Business?
Contact CWS Israel today to schedule a compliance assessment and safeguard your workforce.
Email UsW Space Center, Pika 13, Rishon Le’zion, 7566113
www.cwsisrael.com
