Bahrain Labour Law

Bahrain Labour Law Guide: Private Sector Regulations

An educational legal overview of private sector employment entitlements, working hours, and termination procedures under Bahrain Law No. 36 of 2012 (Promulgating the Labour Law in the Private Sector) as administered by the Ministry of Labour and the Labour Market Regulatory Authority (LMRA).

1. Standard Working Hours & Overtime Provisions

Employment scheduling across commercial establishments, retail businesses, and industrial concerns is bounded by strict statutory limits:

• Regular Working Week: Maximum of 8 hours per day and 48 hours per week across a standard 6-day work schedule.
• Ramadan Reduction: Working hours for Muslim employees are statutorily curtailed to 6 hours per day (36 hours per week).
• Mandatory Rest: Employees are entitled to at least 24 consecutive hours of weekly rest with full pay, typically designated as Friday.
• Overtime Compensation: Hours worked beyond standard shift limits entitle the employee to their standard wage plus an overtime premium of not less than 25% for daytime work and 50% for nighttime work (between 7:00 PM and 7:00 AM). Working on designated rest days or statutory public holidays incurs a 150% rate or a compensatory day off.

2. Paid Leave Entitlements

Employees accrue statutory leave rights based on continuous length of service:

• Annual Leave (Article 58): 30 working days per calendar year once an employee completes at least one full year of service. New hires accrue leave pro-rata at 2.5 days per month.
• Sick Leave (Article 65): An employee with verified medical certification through an authorized physician or public clinic is entitled to up to 55 sick days per year:
  • First 15 days: Full basic pay.
  • Next 20 days: Half pay.
  • Final 20 days: Unpaid leave.
• Special Paid Leave: 3 days for marriage (one-time), 3 days for bereavement of direct relatives, and 1 day for the birth of a child.

3. Resignation, Notice Periods & Contract Termination

Separation procedures vary depending on the structure of the employment contract:

• Indefinite / Open-Ended Contracts: Either party may terminate the employment relationship by tendering at least 30 days advance written notice. Compensation in lieu of notice must be paid if the terminating party waives this period without mutual consent.
• Fixed-Term Contracts: Automatically expire at the end of their agreed duration unless renewed. Premature termination without statutory cause under Article 107 entitles the non-breaching party to contractual damages.
• Arbitrary Dismissal Protections: Termination due to nationality, gender, religion, union membership, or during valid maternity or sick leave is deemed illegal, entitling the worker to court-adjudicated compensatory indemnities.

4. End of Service Indemnity (Gratuity Calculation)

Non-Bahraini expatriate employees not participating in civil retirement pension programs (SIO) earn an End of Service Indemnity upon departure, calculated on their most recent basic salary plus regular allowances:

Note: Fractions of a year are calculated proportionally on a pro-rata basis.

5. Passport Confiscation Prohibitions & Worker Rights

Bahrain strictly enforces worker mobility and personal dignity safeguards:

• Unlawful Document Retention: Employers are explicitly prohibited from seizing, retaining, or confiscating an employee’s passport, residency smart card, or travel credentials. Passports remain the absolute personal property of the bearer. Holding documents against a worker’s will is a penal violation under human trafficking and civil freedom statutes.
• Wage Protection System (WPS): Private establishments must transfer all worker wages directly to accredited Bahraini financial institutions or authorized digital payroll accounts within designated monthly timelines.
• LMRA Mobility: Expatriate workers hold legal avenues to transfer to new sponsoring employers under clear procedural guidelines supervised through the LMRA Expat Portal.