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Home » Labour Court instructs company to pay BD5,500 for outstanding salaries and compensation
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Labour Court instructs company to pay BD5,500 for outstanding salaries and compensation

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Last updated: 2025/01/04 at 12:20 PM
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In a recent case in Bahrain, a Labour Court has ruled in favor of a salesman who was not paid his wages by his company. The legal battle, lasting six months, resulted in the company being ordered to pay BD5,500 in back pay and compensation to the salesman. The salesman, who worked for the company from May 2023 to August 2024, had a monthly salary of BD800 basic pay and an additional BD150 for transport. When he did not receive his wages, he was left with no choice but to resign and take legal action.

The court ordered the company to pay BD4,900 for unpaid salaries, BD617.867 for unused annual leave, and provide an end-of-service certificate to the salesman. Interest on the unpaid wages was set at 6% annually for delays of up to six months, increasing to 12% for delays beyond that period. Despite the company’s lack of attendance at hearings and failure to present a defense, the court found in favor of the salesman due to their tacit acceptance of the claims.

The salesman’s lawyer argued that his client had to resign on 1 September 2024, as a result of not being paid his wages. The salesman was entitled to annual leave compensation due to his over a year of service, leading to the award of BD617.867 for unused leave, based on his basic salary. An end-of-service certificate was also granted, in accordance with Bahrain’s Labour Law.

However, the court rejected the salesman’s claim for BD10,500 in commission, citing a lack of evidence to support his entitlement. A claim against one of the company’s partners was also dismissed, as individual employment disputes fall within the jurisdiction of the Labour Court. The court also denied the salesman’s claim for compensation for unfair dismissal, as he did not follow the required procedure outlined in Article 106 of the Labour Law before resigning.

In addition to the payment of back wages and compensation, the company was ordered to cover BD216.500 in court fees and a BD10 execution fee. This case highlights the importance of adhering to legal procedures and regulations in employment disputes, as well as the consequences of non-payment of wages by companies. Workers in Bahrain can seek justice through the Labour Court and receive compensation for unfair treatment in the workplace. It is crucial for both employers and employees to be aware of their rights and responsibilities under the law to ensure fair and just treatment in the workforce.

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News Room January 4, 2025
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