What you’ll learn

Bahrain Introduction

Bahrain, officially known as the “Kingdom of Bahrain” is an island country located in the Persian Gulf. It comprises a small archipelago made up of 50 natural islands and 33 artificial islands, centered around Bahrain Island which makes up ~83% of the country’s landmass. Bahrain has the fastest-growing economy in the Arab world and wants to encourage technological innovation within the country.

Social Security and Employee contribution

Expatriate working in Bahrain are subject to social security contribution as follow:

  • 4% Employer contribution with a cap 160 BHD

Local Bahraini National are subject to social security contribution as follow:

  • 8% Employee contribution with a cap of 320 BHD
  • 7% Employer contribution with a cap of 280 BHD

End of service

A worker shall be entitled upon the termination of his employment to a leaving indemnity at the rate of half month’s wage for each of the first three years of employment and one month’s wage for each of the following years in service. A worker shall be entitled to receive his leaving indemnity for fractions of the year in proportion to the period spent at the employer’s service.

Probation Period & Termination of Indefinite Contract

  • A worker may be employed under a probationary period if expressly provided for in the contract of employment, provided that the probationary period shall not be more than 3 months. However, a probationary period may be increased up to a maximum of six months.
  • Either party to a contract of employment may terminate it during the probationary period if it becomes evident that its continuance is not appropriate, provided that the party terminating the contract gives at least one day notice to the other party.
  • No worker shall be employed under probation more than once by the same employer.

Termination of Contract Post Probation Period

  • Either party to a contract of employment may terminate it upon giving the other party thirty days’ prior notice and such contract shall remain effective during the notice period and the parties thereto shall be bound by all the obligations arising therefrom. If the contract is terminated by the employer, agreement may be reached that the notice period shall be more than 30 days.
  • If a contract of employment is terminated without complying with the notice period, the party that terminates the contract shall pay to the other party compensation for such notice period equivalent to the worker’s wage for the entire notice period or the remainder thereof, as the case may be. If the termination takes place by the employer, the notice period or the remainder thereof shall be reckoned as part of the worker’s service period. If termination takes place by the worker, the contract shall be terminated as from the date of leaving his job duties.
  • If notice of termination of the contract is given by the employer, a worker shall be entitled to go absent from work for a whole day in every week or for 8 hours during the week to look for another job, provided that absence shall take place at an appropriate time for the conditions of business and the worker shall be entitled to receive his wage for the days or hours of absence.

Working hours

The maximum normal working hours for adult employees shall be eight hours per day or forty-eight hours per week.

Sick leave

During the probationary period, the employee is not entitled to any paid sick leave. The worker shall be entitled to the following sick leaves during the year:

  • 15 days – at full pay
  • 20 days – at half pay
  • 20 days without pay.

Maternity leave

A female worker shall be entitled to maternity leave on full pay for sixty (60) days which shall include the period before and after her confinement provided she produces a medical certificate attested by a government health Centre or one of the clinics approved by the employer stating the expected date of her confinement. A female worker may obtain an additional leave without pay due to her confinement for a period of fifteen (15) days in addition to the aforesaid leave

Medical insurance

Medical health insurance is not mandatory to be provided in Bahrain.

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