MPs likely to reject proposal for grace period on late work permit renewals

TDT | Manama

Email: mail@newsofbahrain.com

A proposal to give employers a 30-day grace period for renewing expired foreign work permits without penalty is expected to be rejected by MPs on Tuesday.

The Parliamentary Services Committee has recommended scrapping the draft amendment to Article 26 of the 2006 Labour Market Law, calling it unnecessary and potentially harmful.

Under the proposal, companies would have 30 days after a permit’s expiry to renew it with out incurring a fine. However, a recent legal update —Decree -Law No. 12 of 2024—already introduced a scaled fine system:

• BD100 if paid within 10 days

• BD300 after one month

• Full penalty thereafter

Crucially, the proposed grace period would not legalise employment during the 30 days. Workers with expired permits would still be barred from working, and employers who allowed it would be in violation of the law. The committee warned this could cause confusion, encourage illegal hiring, and mislead businesses.

The Labour Market Regulatory Authority (LMRA) also opposed the change. It pointed out that employers receive six months’ notice before permits expire and are offered online tools and reminders. Still, it acknowledged challenges in tracking expired permits due to workers changing jobs, leaving the country, or going into illegal employment.

The Ministry of Labour and the government also rejected the amendment, citing concerns that delays in permit renewals would disrupt funding for Tamkeen, the national training and employment fund, which relies on permit fees.

Enforcement was another concern. Authorities said it would be difficult to know whether a company was breaking the law if a worker was found on-site during the grace period. Some firms might also abuse the grace period by applying for unnecessary permits to avoid penalties.

The Bahrain Chamber of Commerce supported the idea in principle but said it was unworkable under current rules, as employers couldn’t legally have the employee working during the grace period.