The Bahraini Parliament has approved new measures that will see fines for employers hiring expat workers without permits reduced from BD 500 to BD 100. The changes are aimed at easing pressures on small businesses and providing them with more time to address issues without facing heavy legal penalties. The amendments, introduced through Decree-Law No. 12 of 2024, adjust Article 40 of the Labour Market Regulation Law and introduce a tiered system of penalties based on the timing of permit breaches.
MP Maryam Al Dhaen hailed the decree-law as one of the most important labour reforms of 2024, stating that it was widely welcomed by the business community. The new system offers a more fair and gradual penalty structure, unlike the previous system where employers were fined a flat rate of BD 1,000 for violations. According to Labour Minister Yousif Khalaf, the reforms strike a balance between enforcement and fairness, aiming to create a labour market that operates efficiently and fairly.
MP Ahmed Al Salloom praised the reforms as a relief for small businesses, highlighting the importance of fairness in dealing with financial burdens faced by SMEs. Meanwhile, MP Jalal Kadhem called for further improvements to address labour market inefficiencies, suggesting that individual workers involved in illegal activities should be held accountable rather than penalizing employers. Figures from the Labour Market Regulatory Authority show a significant increase in cases of unlicensed workers and employer violations in recent years.
CEO of the LMRA, Nebras Talib, emphasized the importance of considering the input of MPs and business owners in continuously reviewing and improving legislation. Kadhem raised concerns about the economic impact of unchecked remittances and highlighted the need to regulate these transactions through proper documentation and transparency. The reforms also introduce a 14-day reconciliation period for unlicensed workers, allowing employers to settle fines before cases are escalated to court.
Overall, these changes are expected to provide much-needed relief for smaller enterprises while addressing the root causes of labour market violations. MPs believe that the adjustments will not only help keep businesses afloat but also ensure that people remain employed. The government’s efforts to sustain SMEs and improve the labour market are seen as a step in the right direction towards a more efficient and fair system for all parties involved.
