Bahraini jobseekers who have been benefiting from the Unemployment Fund for years, taking advantage of a legal loophole, will soon be denied financial support should they refuse training.
Currently, unemployed Bahrainis are eligible for nine months of monthly aid with the amount depending on their educational status.
If they refuse to accept a job afterwards, they can reapply for another nine-month term after a three-month gap – with the process, at times, ongoing for years.
The new amendments to the 2006 Insurance Against Unemployment Law – presented yesterday by five MPs led by Ebrahim Al Nefaei – would see the name of jobseekers removed from the list permanently if they refuse to take up training after the first nine months.
Parliament Speaker Fouzia Zainal has referred the amendments to the services committee for review. Officials from the Labour and Social Development Ministry have been urged to attend the debate.
The Unemployment Fund has around BD500 million – accumulated from one per cent contributions each from the government, employers and employees.
It had much more but last year around BD200m was used to fund early voluntary retirement for civil servants and this year around BD300m to fund wage payments for Bahrainis in the private sector.
“Those who are not keen on taking up a job are benefiting for an eternity from government financing,” said Mr Al Nefaei. “It’s cheating and sheer exploitation of government funds.
“This is why whenever the first nine months are over, training offers will be provided immediately in the government or private sectors. Should it get refused, the jobseeker will be removed from the unemployment lists permanently.
“We opted not to make training compulsory during the first nine months to allow them time to find jobs themselves.”
The MP said university graduates will be paid BD400 each month for training, while others will take home BD300, from the Unemployment Fund – until they land a permanent job.
The maximum training period – which will be incorporated into the bylaw – will be determined by Parliament after discussion with ministers.
“Employers will be interested to take up jobseekers as their training would be supported by the government and if they wish they could also pay them more,” said Mr Al Nefaei. “The training period will be counted voluntarily as pensions for jobseekers wishing to insure themselves with the Social Insurance Organisation (SIO).
“Most employers would want to give permanent jobs after spending time training people.
“We have even seen huge demand for convicts sentenced to training under alternative punishments.”
Mr Al Nefaei said the amendments will ensure loopholes in the law are no longer exploited and genuine jobseekers are served.
“We want to revamp the system for the good of the country and people, while stubbing out misuse,” he said.
mohammed@gdn.com.bh
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