New Labour Law Proposal: Six-Month Notice Period for Workers Facing Job Cuts in Bahrain

A group of Bahraini MPs has proposed amending Article 110 of the Labour Law to provide greater protection for workers facing job losses due to business closures or restructuring.  

 

The proposed amendment, put forward by MPs Basma Mubarak, Jalila Al Sayed, Hanan Al Fardan, Ahmed Al Saloum, and Mohammed Al Rifai, would increase the mandatory notice period for employers from the current one month to six months.

Currently, Article 110 allows employers to terminate employment contracts due to full or partial closure, downsizing, or changes in production systems affecting workforce size.  The law requires employers to notify the Ministry of Labour 30 days before informing employees of termination, with an exception for Bahraini employees possessing the same skills and experience as foreign workers in the same establishment in cases other than complete closure.

The proposed amendment significantly extends this notice period to six months.  Furthermore, it mandates that employers seeking to utilise Article 110 must submit an audited financial report.

The explanatory memorandum accompanying the proposal highlights a recent surge in companies using Article 110 to dismiss employees, exploiting the short notice period.  This has left many workers unexpectedly unemployed, prompting the MPs to introduce the amendment to better safeguard employees' rights and prevent exploitation.  

 

The longer notice period aims to give workers ample time to seek alternative employment, mitigating the immediate hardship caused by sudden job losses.  The requirement for an audited financial report adds a layer of transparency and accountability, ensuring that terminations are justified based on genuine economic circumstances.