Changes to private sector employment law approved in Bahrain

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EMPLOYERS who fail to check with the National Employment Bank at the Labour Ministry before recruiting people could be fined BD1,000 to BD3,000 under possible new parliamentary rule changes that were unanimously approved during yesterday’s session.

The proposed amendments to the 2012 Private Sector Employment Law, aimed to boost job opportunities for Bahrainis, have been presented by five MPs led by second deputy speaker Ahmed Qarata.

They believe the move would help clear a backlog of thousands of qualified candidates seeking opportunities in the workplace and failing miserably to secure positions.

The Labour Ministry told MPs in writing that Bahrainis remain the top priority for employers, who are still keen to find talented citizens that match their needs.

“There are set percentages for expatriates in each sector and employers will have to approach the bank for local candidates,” the ministry said.

The General Federation of Bahrain Trade Unions and Bahrain Free Labour Unions Federation backed the moves.

The Bahrain Chamber, however, said the move contradicted ‘business governance and employers’ ability to manage their operations according to their establishment’s best interests’.

MPs also unanimously voted in favour of amendments to the 1998 Private Educational and Training Establishments Law that would prioritise Bahrainis for jobs in administrative and teaching departments.

The Education Ministry backed the move presented by five MPs, led by Mamdooh Al Saleh, while the Labour Ministry said that ‘70 per cent of directors in training are Bahrainis and 60pc administrators and instructors are also nationals.”

In further developments, only expatriates possessing a master’s degree and boasting at least 10-year work experience in their particular field of expertise would be allowed to take up relevant jobs at ministries and government bodies, if MPs have their way.

Under unanimously approved amendments to the 2010 Civil Service Law, presented by three MPs led by Mr Al Saleh, the Civil Service Commission would only give those passing the condition a two-year contract, renewable just once. Also, those hired would have to train a certain number of Bahrainis to renew their contracts.

MPs also unanimously approved amendments to the 2002 National State Budget Law, submitted by five legislators led by Mr Qarata, that could see revenues of companies, fully or partially owned by the government, moved to the state.

The Finance and National Economy Ministry, however, said that revenues of government authorities and establishments, including municipal bodies, come under the law, despite having separate budgets.

“The ministry monitors revenues and spending without affecting their financial and administrative independence,” it added.

“Government-owned companies are transferring a part of their profits to national coffers, with amounts depending on assessment of their developmental projects and needs. However, in the case of companies where the state is not a majority shareholder, interference in board, executive or operational affairs would be a breach of the 2001 Companies Law.”

Bahrain Mumtalakat Holding Company said the proposal contradicted the independence of companies and their ability to take decisions.

“Mumtalakat contributed BD120 million to the national budget over the past six years and there is commitment to transfer profits, while the rest is used to develop and elevate our operations,” it added.