Parliamentarians in Bahrain are set to discuss a proposal that aims to reduce fines for employers who quickly correct violations related to hiring expat workers without a license. Under the current system, employers face a BD500 fine if caught hiring expat workers without a license. However, the proposed changes would allow employers to resolve the issue by paying a reduced BD100 fine if they act swiftly within 10 days. The fines would increase to BD200 after 20 days and BD300 after 30 days, with repeat offenders potentially facing fines of up to BD1,000.
The amendments also provide an opportunity for reconciliation in cases involving foreign workers without permits, giving employers a chance to settle the issue without going to court. These changes are designed to create a more balanced system, particularly for small and medium-sized enterprises (SMEs) that are essential to Bahrain’s economy. In recent years, the number of cases involving workers without permits has been on the rise, with nearly 2,750 cases remaining unresolved as of September 2024.
Currently, employers in Bahrain must pay fines within seven days to avoid legal action, but the proposed reforms would extend this period to 14 days. The Labour Market Regulatory Authority (LMRA) has stated that these changes are intended to strike a balance between enforcing labor laws and supporting businesses. The amendments are part of Decree-Law No. 12 of 2024, which proposes changes to Article 40 of the Labour Market Regulation Law. Jaleela Alawi Sayyed Hasan, Chairperson of the Services Committee, has described the changes as a sensible approach to supporting businesses while maintaining fairness in the labor market.
The Bahrain Chamber of Commerce and Industry (BCCI) has expressed support for the reforms, lauding them as a positive step towards easing the financial burden on employers while ensuring compliance with labor regulations. The amendments are also in line with Bahrain’s broader efforts to attract investment and support the private sector. By creating a more flexible system that allows for reconciliation and reduced fines for prompt action, the reforms are aimed at supporting businesses, particularly SMEs, in navigating the complexities of labor regulations in Bahrain.
Overall, the proposed amendments to labor laws in Bahrain reflect a commitment to striking a balance between enforcing regulations and supporting businesses. By offering reduced fines for prompt action and opportunities for reconciliation in cases of violations, the reforms aim to create a more balanced system that supports both employers and employees. The support of the BCCI and other business organizations indicates that the changes are seen as a positive step towards easing the financial strain on employers while maintaining compliance with labor regulations. As Bahrain seeks to attract investment and promote growth in the private sector, these reforms are a crucial part of creating a business-friendly environment that encourages compliance and supports economic development.
