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Zawya
08-05-2025
- Business
- Zawya
Amendment to work permits cap approved in Bahrain
Bahrain - Legislators have unanimously approved a proposed amendment to the 2006 Labour Market Regulatory Law that mandates the inclusion of a maximum cap on work permits, as part of the national labour market plan. Parliament's services committee chairwoman MP Jalila Al Sayed explained that the amendment aims to curb over-reliance on foreign labour by tightening controls over the issuance of permits by the Labour Market Regulatory Authority (LMRA). 'The goal is to enhance job opportunities for Bahrainis, reduce economic outflows through remittances and encourage the recruitment of qualified foreign professionals committed to local laws,' she said. However, acting Labour Minister and Legal Affairs Minister Yousif Khalaf said it was impractical to force the cap on permits. 'The current law gives the minister power to introduce a cap, if necessary, depending on circumstances,' he said. 'Enforcing it would mean several vital infrastructure and investments could be harmed if we are unable to get more workers when needed. 'In 2019-2020, expat work permits dropped by 21 per cent due to the Covid-19 pandemic, then increased by 25pc in the next two years. So it is more of a dynamic approach rather than enforcement as the country needs to fast-track development.' During the debate, MPs also raised issues such as rising inflation, the presence of unlicensed street vendors and concerns about public order, calling for stronger measures to uphold Bahrain's economic and social stability. Parliament first deputy speaker MP Abdulnabi Salman said expats on vocational work permits were now competing with Bahrainis by launching food trucks, and selling fruits, vegetables and milk on the roadside. 'When we have no cap on expats, it is expected that they will come to the country en masse and take up jobs and businesses intended for Bahrainis,' he said. 'Even the crime rate is up and Interior Ministry statistics show that mostly expats are involved, the case of bootleggers in Eker being a recent example.' Meanwhile, Strategic Thinking Bloc spokesman MP Khalid Bu Onk recounted how a fellow MP had BD3,000 stolen from his car by an unlicensed food delivery driver. He called for stricter enforcement against illegal workers. He also said that his domestic worker had fled two days ago. 'Now I'm required to pay for her return ticket, while those who helped her escape face no accountability,' he said. He urged the government to abolish the current expat vocational labour registration system, arguing that it has facilitated serious violations and imposed economic, social, and security burdens on citizens. 'We must replace it with a more disciplined system that protects society and reduces illegal labour,' he said, calling for urgent reforms and a review of policies contributing to the problem. The government, however, cautioned that flexibility in labour market regulation remains critical to adapt to changing economic needs. LMRA chief executive Nibras Talib echoed this view, emphasising that the current law already enables responsive adjustments to market dynamics. The Bahrain Chamber expressed concerns that rigid caps could undermine the labour market's agility and impede the private sector's capacity to respond to fluctuations in demand. The chamber advocated for a broader legislative framework that preserves flexibility while supporting economic growth. Meanwhile, the General Federation of Bahrain Trade Unions welcomed the amendment as a positive step towards increasing employment opportunities for Bahraini citizens. The Bahrain Recruitment Agencies Association, however, warned that the measure might conflict with Bahrain's Economic Vision 2030 and impact sectors such as domestic labour recruitment. They called for clearer definitions of targeted labour categories and for the LMRA to conduct periodic market studies. The legislation has been forwarded to the Shura Council for review. mohammed@ Top stories for today: School probedINDIA ATTACKS: Pakistan downs two jets after three killedGreen light for new corporate tax Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Daily Tribune
30-04-2025
- Business
- Daily Tribune
MPs approve bill requiring employers to give advance notice or pay full compensation
TDT | Manama A proposal to compel employers to pay full compensation in cases of economic dismissal, unless they notify the Labour Ministry two months in advance and provide audited accounts, has passed through Parliament and now moves to the Shura Council for review. During the debate, Acting Labour Minister Yousif Khalaf warned that the bill rests on a mistaken belief that financial losses are the only cause of workforce reductions. He told MPs that firms may cut jobs for a range of reasons, including organisational changes, shifts in production, regulatory pressures, or events beyond their control. He argued that the proposal does not capture these realities and would unfairly burden businesses, particularly smaller ones. Khalaf pointed out that requiring proof of losses over three consecutive years would force companies to carry staff they could no longer afford, even where their operations were shrinking or struggling. Audited accounts Many microbusinesses, he said, do not maintain regular audited accounts and would find it impossible to comply with the new demands. He warned that tying employers' hands in this way might seem on the surface to protect Bahraini workers but would, in practice, discourage firms from hiring. The aim, he said, should be to create a balanced working environment where both employee and employer interests are taken into account. The minister also explained that workforce reductions are sometimes the result of factors such as falling demand, soaring costs, or a lack of administrative capacity, rather than wilful neglect or bad faith. He said forcing small firms to hold on to workers under such conditions could push them closer to collapse. The bill, which amends Bahrain's Labour Law (Law No. 36 of 2012), was originally submitted as a revised proposal by Parliament. It sets out stricter steps for ending contracts where economic reasons are cited, such as full or partial closure or the replacement of production methods. Under the new terms, employers must notify the Labour Ministry 60 days before informing the worker. Financial records This notice must be backed by financial records covering the past three years or the most recent audited statement, depending on the circumstances. In cases where both a Bahraini and a foreign worker hold the same job with similar experience and skill, the Bahraini must be kept on unless the company is closing entirely. Failure to meet the notice requirement or the submission of inaccurate information would entitle the worker to full compensation under Article 111. Where procedures are followed correctly, only half that amount is payable. The government voiced concerns that the bill would add to the burdens of struggling firms without offering any meaningful gain to either party in the employment relationship.
