The Bahraini Parliament has approved a decree-law to reduce fines for businesses employing expatriate workers without permits from BD 500 to BD 100. This move aims to ease the burden on small businesses and provide them with more time to comply with regulations. The amendments, introduced through Decree-Law No. 12 of 2024, implement a tiered penalty system based on the time of violation resolution. MP Maryam Al Dhaen praised the new system for acknowledging differences in situations and allowing for reconciliation, unlike the previous law which imposed a fixed fine of BD 1,000.
Labour Minister Yousif Khalaf emphasized that the goal of the reforms is to create a fairer and more efficient labor market without burdening employers. MPs like Ahmed Al Salloom welcomed the amendments, stating that small businesses are the backbone of the economy and imposing a BD 1,000 fine on them can be overwhelming. The new law introduces fairness missing in the previous system and aims to support SMEs in compliance with regulations. MP Jalal Kadhem called for further improvements in holding individual workers accountable for violations rather than penalizing employers.
Data from the Labour Market Regulatory Authority (LMRA) shows an increase in unlicensed workers from 1,500 in 2022 to over 3,400 in 2023. Employer violations almost doubled, reaching 2,100, with 2,700 cases recorded by September 2024, of which fewer than one in five were resolved. LMRA CEO Nebras Talib highlighted the importance of proposals from MPs and business owners in addressing the issue. Kadhem also raised concerns about the economic impact of unregulated remittances, costing the economy billions annually and weakening financial stability.
The decree-law also introduces a 14-day reconciliation period for unlicensed workers, allowing employers to settle fines of BD 500 before cases go to court. MP Maryam Al Dhaen commended the government for addressing a long-standing issue and taking a step in the right direction to support SMEs and improve the labor market. While the reforms may not solve every challenge, they represent progress towards a fairer and more efficient system for businesses employing expatriate workers.
In conclusion, the reduction in fines for employing expatriate workers without permits in Bahrain demonstrates a proactive approach by Parliament to support small businesses and improve compliance with regulations. The tiered penalty system introduced through Decree-Law No. 12 of 2024 allows for reconciliation and acknowledges the differences in violation situations. The reforms aim to create a fairer and more efficient labor market without overly burdening employers, particularly small businesses that are vital to the economy. Further improvements and accountability for individual workers are being called for, alongside efforts to address the economic impact of unregulated remittances. The government’s initiatives to tackle these challenges are seen as positive steps towards supporting SMEs and enhancing the labor market in Bahrain.
