Bahrain company ordered to pay BD100,000 in insurance premiums

TDT | Manama   

The Daily Tribune – www.newsofbahrain.com

The High Civil Appeals Court upheld a ruling that required a tourism company in Bahrain to pay nearly BD100,000 in insurance premiums for one of its employees.

The court affirmed that the employee’s premium to the social insurance system is mandatory and enforced by law. The court rejected the company’s request to obligate the employee to pay the outstanding amounts, arguing that he held the position of General Manager and was authorised to sign government documents.

The court stated that this does not negate the company’s obligation to pay the premiums. Furthermore, the employer’s negligence in deducting the employer’s share of the insurance contribution when paying wages does not allow them to deduct it later in any form.

According to lawyer Taqi Hussain Taqi, the company claimed that the employee retired from his first job over 22 years ago and has joined their company since then. He continued to receive his salary and retirement pension. After leaving the company, he approached the General Organisation for Social Insurance (GOSI) to add his service period with the company to his previous work experience.

The institution responded to his requests and demanded that the company pay approximately BD100,000 towards his insurance premiums for the 22 years. The company refused to pay, claiming that the employee held the positions of General Manager and Board Member and was responsible for his own insurance.