A new labor law aimed at streamlining regulations and providing more flexibility for companies and workers is set to be introduced soon in Bahrain. The draft law, published in the official gazette, includes amendments to the Labour Market Regulation Authority (LMRA) Law. One of the most significant changes involves a reduction in fines for companies found to be employing workers in violation of labour regulations. The fine for companies employing workers with expired work permits or permits belonging to other companies will be reduced from BD1,000 to BD500 if settled within 14 days.
Additionally, a tiered system for fines imposed on workers whose work permits have expired has been introduced under the new law. The fines range from BD100 for violations detected within the first 10 days of expiry to BD1,000 for repeat offenses. The law emphasizes the importance of settlement, allowing for the payment of a specified amount within 14 working days of being notified to avoid criminal charges.
The law is expected to be implemented by the Prime Minister’s office upon its publication in the official gazette. The LMRA board will issue regulations outlining the specific procedures for settlements. The new law aims to provide greater flexibility for both companies and workers while maintaining a strong regulatory framework for the labor market. By reducing fines and offering settlement options, the law aims to encourage compliance and reduce the burden on businesses, while ensuring fair treatment for workers.
The proposed changes in the labor law signify a positive step towards enhancing the efficiency and effectiveness of labor regulations in Bahrain. The reduced fines for companies and workers are designed to strike a balance between enforcing compliance and supporting business growth. By providing options for settlements and clarifying the process for addressing violations, the new law aims to create a more conducive environment for both businesses and workers. The focus on flexibility and fairness in the law reflects a commitment to promoting a healthy and sustainable labor market in Bahrain.
The tiered system for fines based on the duration of the violation provides a structured approach to addressing expired work permits and encourages prompt resolution of issues. The emphasis on settlement within a specified timeframe underscores the importance of timely compliance with labor regulations. By offering a clear path for companies and workers to rectify violations, the new law seeks to promote a culture of responsibility and accountability in the labor market. The regulations to be issued by the LMRA board will further clarify the procedures for settlements and ensure consistency in the application of the law.
Overall, the new labor law in Bahrain represents a significant step towards modernizing and improving the regulatory framework for the labor market. By introducing amendments that address key issues such as fines for violations and settlement options, the law aims to strike a balance between regulatory oversight and business flexibility. As the law moves towards legislative review, it is expected to bring about positive changes that support compliance, encourage fairness, and foster a conducive environment for businesses and workers alike. With a focus on streamlining regulations and providing greater flexibility, the new law is poised to make a meaningful impact on the labor market in Bahrain.
