Proposed Law Aims to Gradualise Penalties for Foreign Worker Permit Violations

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

A group of Bahraini MPs are proposing a new law that would introduce a tiered system of penalties for violations related to foreign worker permits and payment of fines. The proposed legislation aims to address concerns raised by business owners, particularly those operating small and medium enterprises, regarding the current system's harsh penalties.

The current law imposes a flat fine of 1,000 Bahraini dinars for any labour violation related to foreign workers, regardless of the size of the business. The proposed law, however, takes into account the economic activity of the business, starting with a fine of 100 dinars for micro-enterprises.

The proposed law, drafted by MPs Basma Mubarak, Hamad Al Doy, Bader Al Tamimi, Mohammed Janahi, Hassan Ibrahim, and Mohammed Al Balushi, argues that the current fines are unfair as they don't differentiate between small and large businesses and often don't reflect the size of their operations.

The MPs' proposal calls for a more gradual approach to penalties, starting with a warning, followed by a small fine, and then increasing the fine progressively with repeated violations. This approach, they argue, would be more effective in correcting violations and preventing businesses from being forced out of the market due to hefty fines.

The proposal also stresses the need for greater collaboration between the private sector and the Labour Market Regulatory Authority (LMRA) before issuing new regulations and administrative rulings.

The MPs' proposal comes after consultations with business owners who highlighted the negative impact of the current high fines, particularly on small businesses. They argued that the fines often exceed their earnings, especially in sectors like construction, which rely heavily on foreign labor and are prone to violations due to the nature of their work.

The MPs also pointed out that the current system fails to consider the specific circumstances of businesses and their ability to pay fines. They cited examples of construction companies with 50-70 employees who have been forced to shut down due to the hefty fines imposed for minor violations.

The proposed law underscores the need for regular reviews of labour market regulations to ensure their effectiveness and impact on the market. It also calls for a more collaborative approach between the LMRA and the private sector to address issues related to labor regulations.

The MPs argue that the current flat fine system has remained unchanged for too long and needs to be revised to better reflect the realities of the market and the challenges faced by businesses. They hope that the proposed law will create a more balanced and fair system that encourages compliance and supports the growth of businesses.

The proposal also highlights several loopholes in the current system, such as the practice of transferring workers between different companies owned by the same individual and the difficulty in complying with regulations when workers are temporarily assigned to different tasks. The MPs believe that these loopholes should be addressed to ensure a more transparent and efficient system.