Bahrain

Bahrain

Capital: Manama
Currency: Bahraini Dinar- BHD
BHD

Bahrain: Overview of Labor Laws and Employment Policies

Employment Law Overview

  • Key Legislation:
    • Labor Law (Law No. 36 of 2012)
    • Social Insurance Law (Law No. 24 of 2014)
  • Legal Characteristics:
    • Aims to protect employee rights and promote a fair employment environment.
    • Covers aspects such as employment contracts, working hours, vacations, severance pay, and social insurance.

Employment Contract Requirements

  • Contract Types:
    • Fixed-term contracts (up to 60 months)
    • Indefinite-term contracts
  • Contractual Provisions:
    • Must include details on job description, salary, working hours, probation period, annual leave, termination conditions, etc.
    • Must be written in Arabic and use Bahraini Dinar currency.
  • Language and Currency:
    • Arabic
    • Bahraini Dinar (BHD)

Working Hours Regulations

  • Standard Working Hours: 40 to 48 hours per week, 8 hours per day.
  • Rest Days and Breaks:
    • Friday and Saturday are rest days.
    • During Ramadan, working hours may be reduced to 6 hours per day.

Vacation Policy

  • Annual Leave:
    • 30 days of paid annual leave per year.
    • Accrued after one year of service.
  • Public Holidays:
    • 9 official public holidays.
    • Religious holidays are determined by the lunar cycle.
  • Special Leaves:
    • Sick Leave: 35 days of paid sick leave per year.
    • Maternity Leave: 75 days of maternity leave, with the first 60 days paid.
    • Paternity Leave: 1 day of paid paternity leave.
    • Hajj Leave: Muslim employees are entitled to 14 days of paid Hajj leave after 5 years of service.

Employee Severance and Contract Termination

  • Notice Period: 30 days.
  • Severance Pay:
    • Less than 3 years of service: 0.5 month's salary for each year of service.
    • More than 3 years of service: 1 month's salary for each year of service.
  • Unfair Dismissal Protection:
    • Employers must provide valid reasons and proper notice for dismissal.
    • Employees are entitled to compensation for unfair dismissal.

Tax Laws

  • Personal Income Tax: Bahrain does not have personal income tax.
  • Social Insurance Contributions:
    • Employee: 1% of salary (unemployment insurance) and 6% (social security)
    • Employer: 9% of salary (social security)

Health Insurance

  • Insurance Policy:
    • Bahrain has a public healthcare system, but expatriates may not be eligible for coverage.
    • Some employers provide private health insurance as an employee benefit.
  • Coverage:
    • Basic healthcare services.

Compensation and Benefits

  • Minimum Wage: No statutory minimum wage for private sector employees.
  • Compensation Structure:
    • Basic salary
    • Bonuses
    • Allowances

Work Permits and Visas

  • Permit Requirements:
    • Foreigners require a work permit and visa to work in Bahrain.
  • Application Process:
    • Employer applies for a work permit on behalf of the employee with the Ministry of Labor and Social Development.
    • Employee then applies for a visa.

Confidentiality and Non-Compete Clauses

  • Enforceability:
    • Confidentiality and non-compete clauses are enforceable in Bahrain.
  • Common Provisions:
    • Restrict employees from disclosing confidential information after leaving employment.
    • Restrict employees from working for competing companies after leaving employment.

Training and Development

  • Legal Requirements:
    • Employers must provide safety training and skill development for employees.
  • Government Support:
    • Government provides training and development programs to support workforce development.

Workplace Diversity and Inclusion

  • Legal Requirements:
    • Labor Law prohibits discrimination based on race, religion, gender, or nationality.
  • Enforcement:
    • Ministry of Labor and Social Development is responsible for enforcing diversity and inclusion policies.

Remote Work Policy

  • Legal Framework:
    • Labor Law does not specifically address remote work.
  • Tax and Insurance Implications:
    • Tax and social insurance implications of remote work depend on the specific circumstances.

Authoritative Website Addresses

1.Bahrain: Overview of Labor Laws and Employment Policies
1.1Employment Law Overview
1.2Employment Contract Requirements
1.3Working Hours Regulations
1.4Vacation Policy
1.5Employee Severance and Contract Termination
1.6Tax Laws
1.7Health Insurance
1.8Compensation and Benefits
1.9Work Permits and Visas
1.10Confidentiality and Non-Compete Clauses
1.11Training and Development
1.12Workplace Diversity and Inclusion
1.13Remote Work Policy
1.14Authoritative Website Addresses