Global HR Compliance in Bahrain

Bahrain enforces a formal labour framework under the Labour Law for the Private Sector, with direct application to both local and foreign employees. The regulatory environment is relatively centralised but varies in interpretation, especially around contract classification, termination indemnities, and work permit procedures for expatriates.

Employers operating without a registered entity must structure workforce engagement with care, particularly in relation to contract status, leave entitlements, and employee exit terms.

This guide outlines the statutory requirements governing employment in Bahrain and highlights the legal thresholds for onboarding, payment, and termination. It is designed for global organisations operating in Bahrain without full incorporation, or those reassessing current worker arrangements under local compliance and immigration scrutiny.

Hiring and Firing Workforce in Bahrain

Employment Contracts

Employment contracts must be written and conform to the Bahrain Labour Law. Contracts may be concluded for fixed or indefinite terms and must be issued in Arabic (with translation if required) and signed in duplicate. Provisions contrary to local law are void. Employees may not be re-employed on probation by the same employer more than once.

Working Hours

The standard limit is 8 hours per day and 48 hours per week. During Ramadan, Muslim employees are limited to 6 hours per day and 36 per week. A one-hour break must be provided after six consecutive working hours. The statutory weekly rest day is Friday unless otherwise agreed.

Night work is defined as employment between 7 p.m. and 7 a.m.

Probation Period

A probationary period of up to three months is permitted, extendable to six months with prior approval from the Ministry of Labour. This period must be explicitly stated in the employment contract.

Annual Leave

Employees are entitled to 30 calendar days of paid annual leave after one year of service. This equates to 2.5 days per month. Pro-rata leave applies for shorter periods. Muslim employees who have completed five continuous years of service are entitled to one fully paid 14-day Hajj leave, granted once during employment.

Parental and Family Leave

Maternity leave consists of 60 days fully paid, followed by 15 days of unpaid leave. After returning to work, mothers are entitled to:

• Two one-hour breastfeeding breaks daily until the child is six months old
• Two half-hour child care breaks daily until the child reaches one year

These periods are counted as working time. The employer determines their timing, considering both operational needs and employee circumstances.

Unpaid child care leave of up to six months is available for children under six years of age, granted up to three times during the employment relationship.

Sick Leave

Employees are entitled to 55 days of sick leave per year after completing probation. This includes:

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

Medical certification is required. The employer cannot terminate the employee due to illness until all sick and annual leave entitlements are exhausted, and must provide 15 days’ written notice if pursuing termination. If the employee recovers during this period, dismissal must be withdrawn.

Overtime

Overtime must be justified under labour law and agreed in advance. Compensation is as follows:

• 125% of base wage for regular overtime
• 150% for night work
• 150% or a compensatory day off for public holidays or weekly rest days

Employees may not work more than two consecutive weekly rest days.

Minimum Wage

Private Sector: No generally applicable national minimum wage exists for all nationalities. Wages are determined by market forces, sector, nationality, and contract terms.
Public Sector (Bahraini Nationals): Minimum basic salary of 300 BHD per month (since January 2015).
National Employment Programme: Sets specific minimum wage levels for Bahraini citizens enrolled, often based on education.
Private Sector Minimum Wage Debate: Ongoing discussions and demands for a broader private sector minimum wage exist, but no such law is currently in effect.tual terms.

Termination of Employment

During Probation
Either party may terminate with at least one day’s notice.

Fixed-Term Contracts
Automatically expire at the end of the term or on project completion. Continued employment after expiry converts the contract to indefinite.

Indefinite Contracts
May be terminated by either party with 30 days’ written notice. Compensation is due unless termination is for a legitimate cause.

Compensation Rules

• No compensation owed for termination within the first three months, unless arbitrary
• For unlawful dismissal after three months: two days’ wage per month of service, minimum one month, maximum twelve
• For early termination of a fixed-term contract: compensation equals remaining contract period, minimum three months, unless otherwise agreed
• For early termination of a project-based contract: compensation equals remaining period needed to complete the task, subject to the same minimum

Termination at age 60 is permitted without compensation unless contractually restricted.

Acumen International: Global Employment Services in Bahrain

Service Scope

• We serve as the legal Employer of Record for local and foreign personnel in Bahrain
• Enable hiring without the need to establish a local legal entity
• Support both short-term assignments and ongoing employment arrangements

Employer Responsibilities Managed by Acumen

• Issue employment contracts compliant with Bahrain Labour Law
• Administer monthly payroll and disburse salaries locally
• Maintain statutory records and file documentation for audit readiness
• Manage employment terminations, including notice and compensation calculations

Immigration Support

• Sponsor work permits for foreign nationals under local requirements
• Coordinate with Bahrain’s Labour Market Regulatory Authority (LMRA)
• Oversee renewals, exit formalities, and administrative filings

Risk and Compliance

• Align all engagements with Bahrain’s employment and immigration regulations
• Assume legal responsibility for employment-related compliance and liabilities
• Provide operational continuity for companies without local presence.