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Bahrain introduces wage protection system for private sector employees

DATE: 29-Mar-2021 Reported By: Gulf News

Bahrain has unveiled a phased system aimed to protect wages of private sector employees and limit labour disputes.The kingdom’s Minister of Labour and Social Development Jamil Bin Mohammed had issued a decree specifying dates of the phased system, local media reported.

According to the decree, the employer is committed to regularly paying the employees. The first phase of the system applies on May 1, covering private sector institutions that employ 500 workers or above.

The second phase, taking effect as of September 1, covers employers of 50 up to 449 workers, while the third covering employers of one to 49 workers, will come into effect on January 1 next year.

Employers will be given a six-month grace period with the enforcement of each related phase.

Illegal labour

The system aims to guarantee the regular transfer of workers’ wages to their bank accounts in a manner enhancing transparency and oversight as well as supporting the judicial authority in settling wage-related disputes. The arrangement is also hoped to curb illegal labour in Bahrain.

The system is also beneficial to employers as it helps maintain a stable professional environment and business growth.

“This decree comes as part of the Kingdom of Bahrain’s commitments to preserve labour rights in line with the national codes conforming to international labour standards,” Minister Bin Mohammed said. The new system is also designed to support anti-human trafficking efforts, according to him.

The official warned that failure to pay employees on time will be punishable by gradual legal penalties that he did not specify.