Bahrain
Capital: Manama
Currency: Bahraini Dinar- 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.