Employers in Bahrain who breach labour laws, such as hiring expat workers without permits, could soon see reduced fines under proposed reforms. The changes aim to ease the burden on small businesses, with fines potentially dropping from BD 500 to as little as BD 100. The new penalty system would offer flexibility for businesses to address violations promptly, with fines increasing if not resolved within specific timeframes. Repeat offenders could face fines up to BD 1,000, but reconciliation options would also be available for employers to resolve issues outside of court.
The goal of the proposed changes is to support struggling enterprises while upholding labour laws and promoting fairness in the market. Small and medium-sized enterprises (SMEs) play a crucial role in Bahrain’s economy, and officials believe these reforms will help these businesses avoid closure and legal battles. The Labour Market Regulatory Authority (LMRA) has reported a significant increase in cases of workers without permits and employers hiring illegally, emphasizing the need for a more lenient approach to compliance.
Currently, employers must pay fines within seven days to avoid legal consequences, but the reforms would extend this grace period to 14 days. This adjustment aims to give businesses more time to rectify violations and avoid facing mounting fines. The proposed amendments are part of Decree-Law No. 12 of 2024, which seeks to amend Article 40 of the Labour Market Regulation Law. The changes are seen as a practical and fair solution to assist businesses in recovery while maintaining a balance between enforcement and support.
The Bahrain Chamber of Commerce and Industry (BCCI) has expressed support for the reforms, highlighting the positive impact they could have on alleviating financial pressure on employers. These amendments align with Bahrain’s broader objectives to attract investment, promote entrepreneurship, and bolster the private sector. The upcoming debate in Parliament will determine the fate of these proposals, marking a crucial moment for small businesses and the future of Bahrain’s labour market.
In conclusion, the proposed reforms in Bahrain’s labour laws aim to provide a more lenient penalty system for employers breaching regulations, particularly in hiring expat workers without permits. The changes seek to support struggling businesses while upholding fairness in the market. By offering reconciliation options and extending the grace period for fine payments, officials hope to help SMEs avoid closure and costly legal battles. The amendments have garnered support from the BCCI and are in line with Bahrain’s broader economic goals. The upcoming debate in Parliament will be pivotal in shaping the future of Bahrain’s labour market and the business landscape.
