This sub-category of involvement refers to the exploitation of occupied labor by Israeli and multinational corporations.

The Israeli occupation has stripped Palestinian workers of their land and livelihood. 11% of Palestinian workers in illegal Israeli settlements work on confiscated lands originally owned by their families or one of their relatives.

In order to work in settlements, Palestinians must obtain work permits from the Israeli Civil Administration, which also entails the approval of the Israeli internal security service (the Shin Bet). This permit can be annulled at any time, especially when workers demand their rights or try to unionize, or if they (or one of their family members) engage in any kind of political activity. This situation exposes Palestinian workers to extortion by the Israeli internal security service.

Palestinian workers in settlements and within the Green Line are uniquely vulnerable to labor rights violations such as discrimination in salary and social rights, the inability to switch employers, poor safety conditions, the withholding of wages, and arbitrary cancellation of work permits by the Israeli Civil Administration. Restrictions on labor organizing and collective bargaining power further compound this structural vulnerability.

Israeli labor regulations, though applicable to employers in settlements, are rarely enforced in the occupied Palestinian territory, and workers cannot demand these rights for fear of losing their permits. Furthermore, Israeli employers frequently hire workers through Palestinian labor contractors, which render the workers more vulnerable to rights violations.