New law to cut fines for labour violations

TDT | Manama

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A new law is set to be introduced soon to streamline labour regulations and provide more flexibility for companies and workers.

The official gazette has already published a draft law, slated for legislative review in the coming period, introducing amendments to the Labour Market Regulation Authority (LMRA) Law.

The most significant change involves a reduction in fines for companies employing workers in violation of labour regulations.

Companies found to be employing workers with expired work permits or permits belonging to other companies will now face a fine of BD500, down from the previous BD1,000.

This reduced fine applies if the company settles the violation within 14 days of being notified.

The law also introduces a tiered system for fines imposed on workers whose work permits have expired. The fines range from BD100 for violations detected within the first 10 days of expiry to BD1,000 for repeat offenses.

The law also introduces a tiered system for fines imposed on workers whose work permits have expired.

The fines are as follows:

BD100: If the violation is detected within 10 days of the permit’s expiry. BD200: If the violation is detected between 10 and 20 days after the permit’s expiry. BD300: If the violation is detected between 20 and 30 days after the permit’s expiry.

The new law emphasises the importance of settlement. It allows for the settlement of violations by paying a specified amount within 14 working days of being notified. The law also clarifies that criminal charges are dropped upon full payment of the settlement amount.

The law will be implemented by the Prime Minister’s office upon its publication in the official gazette.

Regulations

The LMRA board will issue regulations outlining the specific procedures for settlements.

The new law is expected to provide greater flexibility for both companies and workers while maintaining a strong regulatory framework for the labor market.

The reduced fines and settlement options aim to encourage compliance and reduce the burden on businesses while ensuring fair treatment for workers.