Efforts are currently being made in Parliament to extend the period for disbursing unemployment benefits in Bahrain to 3 years in specific cases in an attempt to provide greater support for the unemployed. The proposed amendment, submitted by MP Jalila Alawi, has been referred to the Speaker of the Council of Representatives, Ahmed Al Musallam, for consideration. The key points of the proposed amendment include providing full salary for six months to one year in cases of arbitrary dismissal, permanent business closure, or company bankruptcy, as verified by audited financials.
In cases of layoffs at foreign companies due to global bankruptcy, eligible individuals will receive compensation 1.5 times the salary per year, with a minimum of six months’ salary and a maximum of 24 months’ salary. Similarly, for layoffs at foreign companies relocating to a different country, the compensation will be three times the salary per year, with a minimum of six months’ salary and a maximum of 36 months’ salary. For layoffs at local companies due to permanent closure and bankruptcy, the compensation will be equal to one year’s salary, with a maximum of 18 months’ salary.
The proposed amendment also addresses layoffs at local companies due to cost-cutting and restructuring by providing compensation twice the salary per year, with a minimum of six months’ salary and a maximum of 24 months’ salary. The proposal highlighted Article 5(c) of Bahrain’s Constitution, which requires the state to provide necessary social security for citizens in the event of unemployment. The proposal has gained the support of several MPs, including Jalila Alawi, Hisham Al Asheeri, Mohsen Al Asboul, Hassan Bukhammas, and Jalal Kadhem.
In conclusion, the proposed amendment to Bahrain’s unemployment insurance law aims to provide additional support for the unemployed by extending the period for disbursing benefits to 3 years in specific cases. The amendment includes compensation for individuals who have been laid off due to arbitrary dismissal, permanent business closure, or company bankruptcy, as well as those affected by layoffs at foreign companies due to global bankruptcy or relocation. The proposal has garnered support from several MPs who believe in the importance of providing necessary social security for citizens in times of unemployment.
Overall, the proposed amendments to Bahrain’s unemployment insurance law seek to ensure that individuals who find themselves without a job receive the support and compensation they need during difficult times. By extending the period for disbursing benefits and providing various forms of compensation for different circumstances of job loss, the proposed amendment aims to alleviate the financial burden faced by the unemployed. With the support of several MPs, including Jalila Alawi, the proposal is a step towards strengthening Bahrain’s social security system and ensuring that citizens are taken care of in times of hardship.
