HR policies in Bahrain guide the employers to maintain a compliant workplace according to the Bahrain Labour Law and LMRA regulations. They govern employment contracts, working hours, leave, compensation, social insurance, and end-of-service benefits.
On top of that, the employers need to follow the Bahrainization requirements and fair recruitment rules for hiring expatriates, as failure to do so results in compensation. While following the HR policies in Bahrain is mandatory for minimizing legal risks, HR software like PiHR can make processes easier and enhance overall efficiency.
What Are HR Policies in Bahrain?
HR policies in Bahrain are the rules and procedures that employers use to manage their employees by following the Bahrain Labour Law and Labour Market Regulatory Authority regulations.Â
According to the Bahrain Labour Law, employers must mention the essential terms and comply with the Labour Law in employee contracts. As for expatriates, they need to obtain valid LMRA permits. It sets HR policies on working hours, breaks, leave, pay, and workplace safety. Disputes go first to the Ministry of Labour, then to tribunals if unresolved. As for LMRA, it regulates expatriate employment, work permits, renewals, and cancellations.
What Are the Key Employment and Labor Laws in Bahrain?
Legislative Decree No. 36 of 2012 is the main private sector employment law in Bahrain. The law sets the mandatory terms for employee contracts, working hours, leave, termination, and end-of-service entitlements.Â
Rights and Obligations of Employers and Employees
Here is an overview of the obligations of employers and employee rights mentioned in the Bahrain Labor Law.Â
Employer Rights
- Employers can set workplace rules and disciplinary measures. [Articles 55 to 59, Labour Law.]
- They can also terminate contracts following lawful notice and reasons. [Articles 99 to 110, Labour Law]
- They can hire expatriates using LMRA processes for permits and cancellations.
Employer Obligations
- Employers need to provide written contracts to their employees. [Article 19, Labour Law].
- Employers need to pay wages on time and maintain payroll records. [Articles 40 to 42, Labour Law]
- They need to limit working hours to 8 hours per day or 48 hours per week/ [Articles 51 to 52, Labour Law].
- Employers need to provide at least 30 days of annual leave after one year of service. They should pay end-of-service benefits to employees. [ Article 58, Labour Law]Â
- Employers should ensure workplace safety and health standards. [Articles 166 to 167, Labour Law].
Employee Rights
- Employees have the right to receive agreed wages and overtime [Articles 39 and 54, Labour Law].
- Employees are entitled to have annual leave, sick leave, maternity leave, marriage and bereavement leave. [Articles 58, 59, and 65, Labour Law]
- Employees also have the right to statutory notice before termination and get the End-of-service benefits.
- The Bahrain Labour Law also protects the employee’s rights from unfair dismissal on discriminatory grounds. [Article 104, Labour Law]Â
Anti-Discrimination Laws
Bahrain Labour Law does not allow discrimination based on sex, origin, language, religion, or for similar reasons. It obliged the employers to pay equally for work of equal value. Moreover, the employers need to follow the rules of the Convention while respecting the rules of the Islamic Sharia.Â
Employment Contracts in Bahrain
Employee contracts in Bahrain simply formalize the relationship between employers and employees. It defines roles, responsibilities, wages, and working conditions according to the Labour Law. In Bahrain, employee contracts are mandatory for all employees, including expatriates.
Types of Employment Contracts
Under the Bahrain Labor Law, employment contracts must be written and in Arabic. The employers can attach translations if needed. Here, contracts are two types.Â
- Fixed-term contracts: These types of contracts end automatically at the agreed time unless the employer or employee renews them.
- Indefinite contracts: These types of contracts continue until terminated by either party with proper notice.
Probation Periods
According to Article 21 of the Labor Law, employers in Bahrain can include a three-month probation period. The employers can extend it to six months if the roles are highly skilled or professional. During this probation period, either the employer or employee can terminate the contract without compensation. However, they must give one day’s notice.
Notice Period After Probation
As mentioned in Article 99, employers need to provide 30 days written notice for termination after the probation ends for monthly paid employees. If the employer fails to provide notice, they must compensate the employee equal to the wages for the notice period.
Foreign Workers and Bahrainization
In Bahrain, Bahrainization is a national quota-driven policy. It requires the private employers to hire a minimum share of Bahraini nationals in specified sectors and company sizes.Â
Bahraini employers can also hire foreign workers. However, they must obtain LMRA work permits. Moreover, he needs to follow LMRA/NPRA procedures, medical checks, and visa/residence rules when hiring expatriates. All in all, whether it is Bahrainization or hiring expatriates, employers must use licensed channels and provide clear offer letters.
Working Hours, Overtime, and Leave Entitlements
Bahrain’s Labor Law has set clear rules for working hours and overtime limits. It also outlines employee entitlements for different types of leaves to ensure work-life balance for all employees.
Working Hours Regulations
Here is a quick overview of working hour regulations in Bahrain.Â
- Standard Workweek: 8 hours per day or 48 hours per week.
- Rest Periods: At least 30 minutes of rest during work for meals and prayers. Employees should not work more than 6 continuous hours without a break.
- Weekly Rest: 24 hours of weekly rest, Friday by default.Â
- Reduced hours in Ramadan: Maximum of 6 hours in a day or 36 hours per week.
- Overtime: It should not exceed 2 hours per day.
Paid Leave and Sick Leave
Bahrain Labor Law entitles its employees to different types of paid leave with different conditions. Here is a quick overview of the leaves entitled to the employees working in Bahrain.Â
| Leave | Entitelements | Conditions |
|---|---|---|
| Annual Leave | 30 days of annual leave on full pay | At least 1 year of service |
| Sick Leave | Annually
| At least 3 months of service |
| Maternity Leave | 60 days of leave on full pay | Provide a medical certificate attested by a government health centre |
| Marriage & Bereavement Leave | Three days of paid leave for
| |
| Hajj Leave | 14 working days paid leave | 5+ years of continuous service |
Social Insurance and End-of-Service Benefits
Bahraini employees and employers both contribute to the Social Insurance Organization (SIO) for pensions and social protection. Here, employer rates are higher than employee rates.Â
Expatriates generally do not join Bahraini pension schemes. Instead, they contribute to SIO work-injury/unemployment coverage and receive employer-funded gratuity contributions for EOS benefits.
Moreover, non-Bahraini workers receive a statutory end-of-service gratuity. It is calculated on basic wage and social allowance. It will be payable on contract termination or resignation according to the Bahrain Labour Law.
Compensation and Benefits
According to the Bahrain Labor Law, employers are required to pay the wages on the due date, typically monthly. If an employer delays paying the wages of the workers, they must pay compensation.Â
- The worker will get an extra 6% of the delayed wages for delays up to six months.Â
- If the delay continues past six months, the compensation increases by 1% for each additional month. However, it can’t go over 12% of the wage per year.
According to the update from January 2025, employers are responsible for work-injury coverage and any contractual medical benefits. Moreover, employees should get employment certificates from their employers as they verify current and past employment with them.
Termination of Employment in Bahrain
In Bahrain, termination must follow legal grounds and notice requirements set by the Labour Law. Here, employers and employees both have clear roles and responsibilities that they need to follow.
Grounds for Termination
According to Article 104, an employer cannot terminate employment due to sex, religion, social status, pregnancy, breastfeeding, union membership, lawful union activity, filing complaints, exercising leave rights, or entitlements of the workers being attached.Â
Employers may terminate without notice for below reasons as mentioned in Article 107-
- False identity or certificates, causing financial lossÂ
- Repeated safety violationsÂ
- Absenteeism beyond limits
- Failure to perform dutiesÂ
- Breaching confidentialityÂ
- Criminal convictionÂ
- Substance abuse at work
- Serious assault
- Non-compliance with strike rules, orÂ
- Loss of qualifications
Moreover, contracts end automatically at expiry, completion of specific work, death, total disability, or reaching retirement age (60).
Notice Period and Severance Pay
Either the employer or the employee must give 30 days’ written notice to terminate a contract. As for Indefinite contracts, they can be terminated within the first 3 months. It will need no compensation unless unfair dismissal. In this case, a worker shall be entitled to compensation equivalent to one month’s wages.
Indefinite contracts terminated without cause after 3 months, the employer should compensate the worker by the equivalent of two days’ wages for each month of service, and at no less than one month’s wages. It should not exceed twelve months’ wages.
The employer will need to compensate for unfair termination. If a worker is fired without a valid reason, compensation will be half of the standard severance pay, unless the contract promises more. However, the employers can claim compensation if a worker terminates without proper notice and it causes business damage.
Expatriate Employee Rights upon Termination
As for Bahraini expatriate workers, they get severance and notice rights just like Bahraini workers. Upon termination, these employees are entitled to end-of-service benefits paid by their employer via the Social Insurance Organization (SIO) system.
Protecting Employee Privacy and Data
Bahrain requires employers to handle employee personal data responsibly. They need to follow data protection laws and ensure proper use of all employee information.
Data Protection Laws in Bahrain
Bahrain’s Personal Data Protection Law (Law No. 30/2018) and PDPA regulations require employers to process employee personal data lawfully and register some processing. He should notify the Personal Data Protection Authority about serious breaches.
Data Security and Confidentiality
Employers must follow appropriate technical and organizational rules to secure employee data, limit access on a need-to-know basis, handle sensitive data, and keep processing records and breach-response plans.
Best HR Practices for Employers in Bahrain
In Bahrain, you should as an employer create clear and compliant policies for hiring, termination, workplace conduct, and conflict resolution. You should also promote a diverse and inclusive workplace by implementing policies that ensure equal opportunities and respect for all employees.
On top of that, you should implement strategies that enhance employee engagement and satisfaction to enhance retention rates. For this purpose, you should use HR technology like Huduri to make HR processes easier and enhance efficiency.
Expatriates and Foreign Workers in Bahrain
In Bahrain, expatriates and foreign workers must obtain LMRA-issued work permits and register expatriate contracts through LMRA/NPRA channels. They should use licensed recruitment processes for overseas hires.Â
Here, expatriates are entitled to contractually agreed wages, statutory end-of-service gratuity, workplace injury protection, and LMRA dispute-resolution support while their permit remains valid.
Dispute Resolution in Bahrain’s Labor Market
Bahrain also has structured procedures for resolving workplace disputes. Employees and employers can seek conciliation through MLSD before going to the Labour Court.
Resolution of Labor Disputes
If there are any labor disputes, workplace complaints must first go to the Ministry of Labour & Social Development. It will facilitate negotiation, offering consultation for both individual and collective conflicts. If there are unresolved cases, they can be taken to the Labour Court or arbitration panels, where a legal decision will be made.
Collective Bargaining and Unions
Workers can also form trade unions and can also negotiate together with employers through collective bargaining under Bahrain’s Workers’ Trade Union Law. However, unions must be officially registered, and their activities are limited to essential services.
Final Thoughts
All in all, the Bahrain Labor Law has a fair balance as it protects the employees and supports the business growth at the same time. As an employer, you are obliged to ensure compliance with making timely wage payments and end-of-service entitlements.Â
You should respect employee privacy and use HR technology to simplify HR processes. At last, regularly update HR policies to keep them up-to-date with the Bahrain Labor Law changes.
