Vote on Lower Fines for Labor Breaches

TDT | Manama

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Employers who breach labour laws, including hiring expat workers without permits, could see fines reduced from BD 500 to as little as BD 100 under proposals aimed at easing the burden on small businesses. The changes, set to be debated and voted on in Parliament next Tuesday, are intended to help struggling enterprises avoid closure while encouraging them to address violations quickly.

The reforms would introduce a staggered penalty system, where employers resolving breaches within 10 days would pay BD 100, rising to BD 200 after 20 days and BD 300 after 30 days. Employers delaying further would face the standard BD 500 fine, while repeat offenders could be charged up to BD 1,000. Officials believe this approach will provide struggling businesses with the flexibility to comply while avoiding costly legal battles.

The amendments also allow for reconciliation in cases involving foreign workers caught working without permits, offering employers a chance to resolve issues without escalating to court. Officials say these measures aim to create a fairer system for small and medium-sized enterprises (SMEs), which are vital to Bahrain’s economy.

Figures from the Labour Market Regulatory Authority (LMRA) underscore the scale of the problem. In 2022, more than 1,500 cases of workers without permits were recorded, alongside 973 violations by employers hiring illegally. By 2023, these figures had more than doubled. As of September 2024, nearly 2,750 cases have been logged, many of which remain unresolved, leaving employers facing mounting fines and legal challenges.

Currently, employers must pay fines within seven days to avoid legal proceedings. The proposed changes would extend this period to 14 days, giving businesses more time to address violations.

The LMRA said the reforms aim to strike a balance between enforcing labour laws and supporting businesses through a practical and fair framework.

The amendments are part of Decree-Law No. 12 of 2024, which proposes changes to Article 40 of the Labour Market Regulation Law. Chairperson of the Services Committee, Jaleela Alawi Sayyed Hasan, said the changes are a sensible approach to helping businesses recover while maintaining fairness in the labour market.

The Bahrain Chamber of Commerce and Industry (BCCI) has welcomed the reforms, describing them as a positive step toward easing the financial strain on employers while ensuring compliance. Officials added that these amendments align with Bahrain’s broader efforts to attract investment, promote entrepreneurship, and support the private sector.

Parliament’s debate next Tuesday will determine whether these proposals move forward, marking an important moment for small businesses and the future of Bahrain’s labour market.