Bahraini King issued new labour law

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). Endorsing its commitment to enhance the capability of the private sector as the engine of growth of the economy of the Kingdom of Bahrain, Bahrain Chamber of Commerce & Industry (BCCI) expresses its concern over the significant changes in the new Labour Law. In the letter sent to the Prime Minister, His Highness Prince Khalifa Bin Salman Al Khalifa, Dr. Esam Fakhro, Chairman of BCCI appealed to His Highness to issue directives to the H. E. The Minister of Labour to consult and coordinate with BCCI to have the voice of the private sector heard so that the Labour law amendment does justice to the private sector and protect the rights of all parties. In its statement, BCCI defined its position that it does not object to the rights and the benefits of the private sector employees. The draft of the law was drawn by the Ministry of Labour in consultation with BCCI. The draft had incorporated BCCI’s recommendations based on the views of the private sector. However the new law has replaced BCCI’s recommendations with other articles on which was BCCI was not consulted to consider the views of the private sector. The new law, which, differed on diverse aspects from the articles of the draft, has introduced various changes on matters such as overtime pay, holiday entitlements, sick leave, end of service indemnity and compensation calculations. Many of these changes have led to a some sort of confusion for calculation of the benefits. It is also a matter of concern that the new labour law gives added benefits and rights to women such as extended maternity leave. These may lead companies to opt out of hiring women. As such it could hamper the government’s plan to integrate women in the labor market, as employers may try to avoid employing women. Such a situation could lead to the unemployment of women. The new law with its over-focus on the social aspect did not strike the balance between the economic and social aspects which is of critical importance to enhance productivity in a healthy environment. Aimed at underpinning its efforts to enhance the stability of the labour market and economic growth of the Kingdom of Bahrain, BCCI is confident the prudence and vision of His Highness of the Prime Minister will be give due consideration to the Chamber’s recommendations and will issue the necessary timely directives to solve the matter.