Bahrain labor laws are the backbone of fair employment practices in the Kingdom. As the country continues to expand its economy, particularly in sectors like construction, hospitality, finance, and technology, it has worked to align its employment standards with global practices. Whether you’re an investor, business owner, or employee, understanding labor laws in Bahrain is key to staying compliant and protecting your rights.

This guide breaks down all major aspects of Bahrain’s employment law—from working hours and wages to termination rules and expat rights—making it a helpful resource for anyone involved in the Bahraini workforce.

Legal Framework of Bahrain Labor Laws

The primary source of employment legislation in Bahrain is the Labour Law for the Private Sector (Law No. 36 of 2012). This law governs contracts, wages, work conditions, and employee rights.

The law applies to both Bahraini nationals and expat workers, making it essential reading for companies employing a diverse workforce.

Who Enforces Labor Laws in Bahrain?

The Ministry of Labour and Social Development (MLSD) is responsible for monitoring and enforcing the Bahrain labor laws. This body handles worker complaints, conducts inspections, and ensures labor contracts are in line with the law.

Employment Contracts in Bahrain

A legally binding employment contract in Bahrain is required for all employees, regardless of their nationality. Contracts can be either fixed-term or unlimited, and they must be in Arabic (or bilingual if the employee is a foreigner).

Key Clauses Required

• Employee’s job title and duties
  
• Salary and allowances
  
• Probation period (up to 3 months)
  
• Leave entitlements
  
• Termination conditions
  

All contracts must be registered with the relevant authorities, especially for expats needing work permits.

Working Hours and Overtime

Standard working hours in Bahrain are 8 hours per day and 48 hours per week, as per the law. During Ramadan, working hours for Muslim employees are reduced to 6 hours per day.

Overtime Regulations

Overtime is allowed but must be compensated:

• 125% of normal wage for weekday overtime
  
• 150% for weekend and public holiday work
  
• Overtime must not exceed 2 hours per day unless urgent

Wages and Salary Regulations

There is no national minimum wage in Bahrain for private sector employees, except for domestic workers. However, wages must be fair, timely, and stated in the employment contract.

Payment Requirements

• Salaries must be paid monthly
  
• Payments should be through bank transfers or Wages Protection System (WPS)
  
• Employers must provide salary slips
  

For disputes related to pay, workers can approach the Ministry of Labour for resolution.

Leave Entitlements in Bahrain

Bahrain labor laws provide generous leave policies to protect the wellbeing of workers.

Annual Leave

Employees are entitled to 30 days of paid annual leave after completing one year of service.

Sick Leave

Employees can take up to 55 days of sick leave per year:

• First 15 days with full pay
  
• Next 20 days with half pay
  
• Final 20 days unpaid
  

Maternity Leave

Female employees are entitled to 60 days of paid maternity leave, with additional unpaid leave up to 15 days.

Paternity Leave

Male employees are given one day of paternity leave.

Public Holidays

Employees are entitled to full paid leave during public holidays in Bahrain, which include:

• Eid Al Fitr
  
• Eid Al Adha
  
• National Day
  
• Islamic New Year
  

Termination and End of Service

Termination laws in Bahrain are structured to protect both employers and employees from unfair practices.

Termination with Notice

• Minimum of 30 days’ notice is required
  
• Employer must provide valid reasons
  
• Employees can be dismissed during the probation period without notice
  

End of Service Benefits

Workers are entitled to an end-of-service gratuity if they have worked for at least one year. The standard formula:

• Half-month salary per year for first 3 years
  
• One-month salary per year after 3 years

Protection Against Unfair Dismissal

Bahrain labor laws prevent arbitrary or discriminatory termination. Dismissal based on race, gender, religion, or union membership is not allowed.

Workers can file complaints at the Labour Court. If the dismissal is found to be unfair, reinstatement or compensation may be ordered.

Expat Workers and Visa Rules

Expat labor laws in Bahrain fall under the same legal framework but also include specific provisions regarding visas and sponsorship.

Work Visa Process

Employers must apply for:

• Employment Visa
  
• CPR Card (Resident Permit)
  
• Labour Market Regulatory Authority (LMRA) registration
  

Visas are usually valid for one or two years and renewable.

Occupational Health and Safety

The law mandates strict standards for health and safety in the workplace. Employers must provide:

• Clean and hazard-free workspaces
  
• Personal protective equipment (PPE)
  
• Safety training and emergency plans
  

Regular inspections are conducted to ensure compliance.

Wages Protection System (WPS) in Bahrain

To protect workers, Bahrain has implemented the Wages Protection System, which ensures timely and traceable salary payments.

This is mandatory for all companies and helps avoid disputes related to non-payment or salary delays.

Trade Unions and Collective Bargaining

Bahrain allows trade unions in both public and private sectors. Employees can form unions to negotiate contracts, report violations, and seek better benefits.

Workers’ Rights

• Right to unionize
  
• Right to collective bargaining
  
• Right to strike (under regulated conditions)

Labor Disputes and Complaint Procedures

If any employee faces unfair treatment, Bahrain’s labor dispute resolution system is available.

How to File a Complaint

• Submit complaint to the Ministry of Labour
  
• Attempt reconciliation through mediation
  
• Escalate to Labour Court if unresolved
  

Most disputes are resolved within 3 months if documentation is strong.

Recent Updates in Bahrain Labor Laws (2025)

Bahrain continues to update labor laws to align with Vision 2030 and global standards. Recent improvements include:

• More flexible working hour policies
  
• Encouraging remote and hybrid work
  
• Stricter penalties for wage delays
  
• Improved rights for domestic workers

Compliance Tips for Employers in Bahrain

• Use written contracts for all employees
  
• Follow the Wages Protection System
  
• Maintain up-to-date visa records for expats
  
• Offer legally required leave and benefits
  
• Stay informed of new changes in Bahrain labor laws
  

Failing to comply can lead to fines, license suspension, or even jail time for serious offenses.

Conclusion

A solid understanding of labor laws in Bahrain is essential for any business operating in the Kingdom. These laws are built to protect both employers and employees, ensuring fairness, productivity, and transparency.

Whether you’re hiring locals or expats, being compliant keeps your business safe and competitive. For those needing help navigating the legal system or setting up a compliant HR framework, professional Business Setup Services in Bahrain can make the process easy and efficient.

FAQs

Are labor laws in Bahrain the same for locals and expats?

Yes, all employees—regardless of nationality—are protected under the same labor law framework.

What is the maximum probation period in Bahrain?

The probation period cannot exceed three months, and it must be stated in the employment contract.

How is overtime paid in Bahrain?

Overtime is paid at 125% of the hourly wage on weekdays and 150% on weekends or public holidays.

Do employers need to provide health insurance?

Health insurance is recommended but not yet mandatory for all. Many companies include it as a benefit.

Can an employee be terminated without notice?

Only during the probation period. Otherwise, a 30-day notice or equivalent pay is required.