Proposed labour law changes could burden SMEs, says MP

TDT | Manama

Email: mail@newsofbahrain.com

Changes to Bahrain’s labour laws may leave small and medium-sized businesses struggling to stay afloat, MP Hassan Ibrahim has warned, as he urged the government to step up support for traders amid mounting economic pressures.

The amendments to Decree-Law No. 12 of 2024, which update Article 40 of Law No. 19 of 2006 regulating the labour market, come at a time when businesses are grappling with dwindling purchasing power and cash flow challenges.

MP Hassan argued that the current economic environment requires greater flexibility in the enforcement of penalties on traders, particularly as some delays in meeting financial obligations stem from auditing firms prioritising larger companies.

Sufficient time

“Limited liability businesses need sufficient time to submit their accounts. It’s unfair to penalise them for delays often caused by auditors focusing on big players,” he said.

He stressed the need to simplify processes for traders, ensuring fair competition in the market while offering consumers more affordable choices.

The MP also welcomed the amendments designed to reduce legal disputes against small businesses, saying these enterprises should be given the chance to adjust their affairs and remain operational.

Micro-businesses

According to MP Hassan, the proposed changes could help sustain micro-businesses and encourage more Bahrainis to start their own ventures.

He called for additional measures to support these efforts and ensure their success.

Statistics from the Labour Market Regulatory Authority (LMRA) show 1,538 cases of foreign workers operating without permits and 973 incidents of labour being employed without proper authorisation or breaching permit terms.

MP Hassan said these figures underscore the importance of tightening oversight while protecting legitimate businesses.

He praised the efforts of Tamkeen in subsidising Bahraini wages in the private sector, describing these programmes as key to making Bahrainis the first choice for employers.

Ther lawmaker urged further investment in such schemes to attract more job seekers.

MP Hassan also called for better cooperation between government bodies to tackle labour violations efficiently without placing undue strain on small firms.

Amendments

The recent amendments, he said, demonstrate the need for a business-friendly environment that balances the rights of all parties.

He concluded by expressing optimism that these changes could strengthen Bahrain’s economy while encouraging more Bahrainis to invest.

“Backing entrepreneurs and creating space for their growth will help build a more resilient economic foundation for the future,” he said.