A group of Bahraini MPs have proposed a new law that aims to reform the current system of penalties related to violations of foreign worker permits and fines. The proposed legislation introduces a tiered approach to fines based on the size of the business, starting with a fine of 100 Bahraini dinars for micro-enterprises. The MPs argue that the current flat fine of 1,000 dinars is unfair as it does not consider the economic activity of the business and can have a disproportionate impact on small businesses.
The MPs, including Basma Mubarak, Hamad Al Doy, Bader Al Tamimi, Mohammed Janahi, Hassan Ibrahim, and Mohammed Al Balushi, emphasize the need for a more gradual approach to penalties, starting with a warning for first-time violations. They believe that this approach will be more effective in correcting violations and preventing businesses from being forced out of the market due to hefty fines.
The proposed law also calls for greater collaboration between the private sector and the Labour Market Regulatory Authority (LMRA) in the development of new regulations and administrative rulings. The MPs conducted consultations with business owners who highlighted the negative impact of the current high fines, particularly on small businesses in sectors like construction that heavily rely on foreign labor.
The MPs stress the importance of regular reviews of labour market regulations to ensure their effectiveness and impact on the market. They argue that the current flat fine system has remained unchanged for too long and needs to be revised to better reflect the realities of the market and the challenges faced by businesses.
Additionally, the proposed law addresses loopholes in the current system, such as the practice of transferring workers between different companies owned by the same individual and challenges in compliance when workers are temporarily assigned to different tasks. The MPs believe that addressing these loopholes will ensure a more transparent and efficient system that encourages compliance and supports the growth of businesses.
In conclusion, the proposed legislation by Bahraini MPs aims to reform the current system of penalties related to violations of foreign worker permits and fines. The tiered approach to fines based on the size of the business, along with greater collaboration between the private sector and the LMRA, is expected to create a more balanced and fair system that encourages compliance and supports the growth of businesses. Regular reviews of labour market regulations and addressing loopholes in the system are also key aspects of the proposed law to ensure a more transparent and efficient system for all businesses operating in Bahrain.
