Bahrain Introduces New Labour Law

On July 26, 2012, the King of Bahrain issued new labour Law No. 36 of 2012 (the New Law). The New Law repeals and replaces the old labour law (No. 23 of 1976).

The New Law underpins Bahrain's efforts to come in line with international standards, and it has aligned Bahrain's domestic law with several of the Arab and international labour treaties and conventions to which it is a signatory and which have come into effect over the last 36 years (since the enactment of the old labour law). Implementing regulations will be brought into force within six months of the date of the new Law.

It is expected that the New Law's pro-employee approach will help to increase salaries and improve working conditions, and generally help to create a better investment environment in Bahrain by aligning the practices and benefits for private-sector employment with Bahrain's public sector. Furthermore, Bahrain has now become the first GCC country to scrap the sponsorship system, as under the new Law an expatriate worker can switch jobs without the need for his prior employer's consent.

In addition to benefiting the working environment in the private sector, implementation of the New Law is expected to result in faster resolution of labour disputes which, under the old law, often took as long as three years to resolve through the courts.

The following is a high-level review of some of the more significant changes that have been made under the New Law.

Scope of the Law

For the first time throughout the GCC, domestic staff (including gardeners, drivers and cooks) previously not protected under the law will come under the ambit of the New Law. Such employees will now be employed under clear contractual terms in line with all private-sector employees. This is seen as a major component of preventing human trafficking in Bahrain.

Non-Discriminatory Practices

Discriminatory practices – of whatever nature – are prohibited under the New Law. For example, discrimination in the payment of wages based on sex, ethnic origin, language, religion or beliefs is prohibited (Article 39). In addition, further anti-discriminatory provisions can be found in the New Law which prohibit termination of contracts based on sex, colour, religion or membership in a trade union.

Annual Leave

Under the old law, annual leave was provided at 21 days for the first five years of service and 28 days for every year thereafter (Article 84). Under the New Law, all employees are entitled to 30 working days...