Act swiftly to save on fines

TDT | Manama

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Parliamentarians are set to discuss a proposal aimed at reducing fines for employers who swiftly correct their violations. Normally, if an employer is caught hiring expat workers without a licence, they face a BD500 fine. However, the proposal, designed to ease the burden on small businesses, allows them to resolve the issue by paying a BD100 fine if they act quickly in 10 days.

After 20 days, the fine would increase to BD200, and after 30 days, it would rise to BD300. Employers who delay further would face the standard BD500 fine, while repeat offenders could be charged up to BD1,000.

Additionally, the amendments offer an opportunity for reconciliation in cases involving foreign workers without permits, allowing employers to settle the issue without going to court. Officials say the reforms aim to create a more balanced system, particularly for small and medium-sized enterprises (SMEs), which play a crucial role in Bahrain’s economy. In 2022, over 1,500 cases of workers without permits were recorded, with the numbers doubling by 2023. As of September 2024, nearly 2,750 cases remain unresolved.

Currently, employers must pay fines within seven days to avoid legal action, but the proposed changes would extend this period to 14 days.

The LMRA said these reforms aim to strike a balance between enforcing labour laws and supporting businesses. The amendments are part of Decree-Law No. 12 of 2024, which proposes changes to Article 40 of the Labour Market Regulation Law. Jaleela Alawi Sayyed Hasan, Chairperson of the Services Committee, called the changes a sensible approach to supporting businesses while maintaining fairness in the labour market.

The Bahrain Chamber of Commerce and Industry (BCCI) has welcomed the reforms, praising them as a positive step to ease the financial strain on employers while ensuring compliance. The amendments also align with Bahrain’s broader efforts to attract investment and support the private sector.