In a recent announcement by Jameel bin Mohammed Ali Humaidan, Minister of Labour and Chairman of the Labour Market Regulatory Authority (LMRA), a significant regulatory update has been made for licensed manpower agencies in Bahrain. According to Decision No. 4 of 2024, which amends Article (6) of Decision No. 3 of 2014, licensed agencies are now required to deposit a BHD 150 insurance fee for every work permit issued, in addition to the regular work permit fee. This new requirement specifically applies to manpower agencies that supply labourers on temporary contracts, whether hourly, daily, monthly, or yearly.
The Labour Market Regulatory Authority (LMRA) has made it clear that this decision is targeted at agencies that provide temporary labour services. The BHD 150 insurance deposit will serve as a safety net to cover repatriation costs for foreign workers hired by these licensed supply agencies. The ultimate aim is to protect both the workers and the agencies involved, ensuring that foreign workers are not burdened with repatriation costs in the event of contract termination or other related circumstances. This decision reflects Bahrain’s commitment to enhancing the regulatory framework of the labour market while safeguarding the rights of workers and employers.
With this new amendment in place, licensed manpower agencies in Bahrain will need to factor in the additional costs when securing work permits for temporary labourers. While this may pose a financial challenge for agencies, it also represents a proactive step towards providing better financial security for foreign workers in the country. By requiring agencies to deposit the BHD 150 insurance fee, the Bahraini government aims to ensure that workers are protected in case of unforeseen circumstances that may lead to contract termination or repatriation.
Overall, this regulatory update highlights Bahrain’s dedication to improving labour market standards and protecting the rights of both workers and employers. The decision to require licensed manpower agencies to deposit an insurance fee for work permits issued to temporary labourers is a crucial step towards ensuring the safety and financial security of foreign workers in the country. While the amendment may pose a financial challenge for agencies, it is a necessary measure to prevent workers from bearing the burden of repatriation costs in cases of contract termination. This move underscores Bahrain’s commitment to creating a fair and transparent labour market that prioritizes the well-being of all parties involved.
