Wage Protection: Bahrain introduces system for private sector employees

Bahrain has Monday unveiled a phased system aimed to protect the 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, reported by the local media, 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.

The system will be applied on an optional basis to domestic workers’ employers.

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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 designed to also support anti-human trafficking efforts, according to the minister.

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