LMRA urges caution, warns changes could disrupt local job

TDT | Manama

Email: mail@newsofbahrain.com

The parallel Bahrainisation system, which allows businesses to hire foreign workers by paying a BD500 compensation fee, is now under scrutiny.

MPs are pushing to remove this option, claiming it lets companies sidestep local hiring regulations. However, the Labour Market Regulatory Authority (LMRA) warns that scrapping the system could backfire, as the additional cost of foreign work permits encourages firms to hire locals.

The proposal is set for a parliamentary vote on Tuesday.

MPs argue that abolishing the system would force businesses to focus more on hiring Bahrainis rather than relying on foreign workers. The move, backed by MPs Bader Al Tamimi, Hamad Al Doy, Abdulla Al Dhaen, Dr Ali Al Nuaimi, and Waleed Al Doseri, is aimed at promoting local employment.

LMRA Defends

However, LMRA insists that the current system aligns with Bahrain’s labour market plan and the government’s goal of making Bahraini workers the preferred choice. The authority argues that businesses already meeting their hiring targets are exempt from the extra fees, meaning the system isn’t inherently unfair.

Specialist Jobs

The Bahrain Chamber of Commerce and Industry warns that many specialist jobs rely on foreign expertise, and removing the system could lead to shortages, lower work quality, and a less efficient economy.

Lack of Consultation

Meanwhile, the General Federation of Bahrain Trade Unions contends that the system has made it harder for Bahrainis to secure jobs. The union also criticises the lack of consultation with labour groups when the system was introduced, claiming it favours businesses over workers.

Services Committee Backs

Parliament’s Services Committee has reviewed the proposal and is in favour, with most members agreeing that it could help increase Bahraini employment and stabilise the job market.