Push to Extend Unemployment Benefits to 3 Years

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Efforts are underway in Parliament to extend the period for disbursing unemployment benefits to 3 years in specific cases, amending Bahrain's unemployment insurance law to provide greater support for the unemployed. The proposal, submitted by MP Jalila Alawi, has been referred to the Speaker of the Council of Representatives, Ahmed Al Musallam.

The proposed amendment includes several key points. In cases of arbitrary dismissal, permanent business closure, or company bankruptcy (verified by audited financials), eligible individuals will receive their full salary for six months to one year while the Ministry of Labour assists them in finding a similar or suitable job. Should the person turn down the job offers, the salary payments will cease the month they begin new employment.

In cases of layoffs at foreign companies due to global bankruptcy (confirmed by audited financials), the compensation will be 1.5 times the salary per year, with a minimum of six months' salary and a maximum of 24 months' salary. For layoffs at foreign companies relocating to a different country (also proven by audited financials), the compensation will be three times the salary per year, with a minimum of six months' salary and a maximum of 36 months' salary.

For layoffs at local companies due to permanent closure and bankruptcy (as verified by audited financials), the compensation will be equal to one year's salary, with a minimum of six months' salary and a maximum of 18 months' salary. In cases of layoffs at local companies due to cost-cutting and restructuring (proven by audited financials), the compensation will be twice the salary per year, with a minimum of six months' salary and a maximum of 24 months' salary.

The proposal cites Article 5(c) of Bahrain's Constitution, which obliges the state to provide necessary social security for citizens in the event of unemployment. The proposal has gained the support of several MPs, including Jalila Alawi, Hisham Al Asheeri, Mohsen Al Asboul, Hassan Bukhammas, and Jalal Kadhem.