*** Parliament Approves Reduction in Expat Worker Permit Fines to Support Small Businesses | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Parliament Approves Reduction in Expat Worker Permit Fines to Support Small Businesses

TDT | Manama

Email: mail@newsofbahrain.com

In a move to ease the burden on small businesses and provide them with more time to comply with regulations, Parliament has approved a reduction in fines for employing expatriate workers without permits, cutting the penalty from BD 500 to BD 100.

The amendments, introduced through Decree-Law No. 12 of 2024, revise Article 40 of the Labour Market Regulation Law, implementing a tiered penalty system. A BD 100 fine will apply if violations are resolved within 10 days of a work permit’s expiry, increasing to BD 200 after 20 days and BD 300 after 30 days. If unresolved after 14 days, the case will go to court, where the minimum fine applies.

MP Maryam Al Dhaen described the decree-law as well-received by the business community. "Under the previous law, employers were fined BD 1,000 regardless of the situation. The new system acknowledges these differences and allows for reconciliation." Labour Minister Yousif Khalaf emphasized that the goal is to create a fairer and more efficient labour market, not burden employers.

MP Ahmed Al Salloom welcomed the reforms, noting, "Small businesses are the backbone of our economy. Imposing a BD 1,000 fine on them can be overwhelming. This law introduces fairness missing in the previous system." MP Jalal Kadhem called for further improvements, stating that harsher penalties do not necessarily deter violations.

"The law should hold individual workers accountable for taking jobs outside the establishments they are registered with, rather than penalizing employers, many of whom are Bahraini citizens." Data from the Labour Market Regulatory Authority (LMRA) shows the scale of the issue, with unlicensed workers increasing from 1,500 in 2022 to over 3,400 in 2023. Employer violations nearly doubled, reaching 2,100.

By September 2024, another 2,700 cases were recorded, with fewer than one in five resolved. LMRA CEO Nebras Talib said the authority values input from MPs and business owners, noting, "We carefully consider all proposals." Kadhem also raised concerns about the economic impact of unregulated remittances, stating, "These transfers cost the economy billions annually and weaken our financial stability. Proper documentation and transparency are crucial."

The reforms also introduce a 14-day reconciliation period for unlicensed workers, allowing employers to settle fines of BD 500 before cases go to court. Al Dhaen praised the government for tackling a long-standing issue, saying, "While the reforms may not solve every challenge, they represent a step in the right direction for supporting SMEs and improving the labour market."