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Bahrain Eases Penalties on Employers for Sponsorship Violations

On September 7, 2024

Bahrain’s Labour Market Regulatory Authority (LMRA) recently introduced a decision allowing employers who hire workers with invalid or expired work permits to pay reduced fines instead of facing criminal charges. Additionally, migrant workers without valid permits can avoid conviction and deportation by paying a fine. 

The new decision amends the LMRA Law (Decision No. 19 of 2006) to enable employers who hire migrant workers without a valid work permit to reconcile the violation by paying a fine of BD 500 (US$ 1,326) for first-time offences. Repeat offenders can reconcile by paying BD 1,000 (US$ 2,653).

The LMRA law mandates that employers who hire workers without a permit face imprisonment for a period of three months to one year, and a fine ranging from BD 1,000 to BD 2,000 (US$ 2,653 to US$ 5,308), or both penalties. In practice, however, Bahraini authorities rarely impose imprisonment, opting instead to fine the violators.

The decision also stipulates that employers who have failed to renew the work permits of workers under their sponsorship and employment can reconcile the violation by paying fines as follows:

  • BD 100 (US$ 265) if the violation is detected within 10 days of the permit’s expiration.
  • BD 200 (US$ 531) if detected between 10 and 20 days after the permit’s expiration.
  • BD 300 (US$ 796) if detected between 20 and 30 days after the permit’s expiration.

If an employer is caught employing a worker more than 30 days after the permit’s expiration, the decision specifies that reconciliation must be made by “paying the minimum fine for the violation.”

The decision also allows migrant workers caught working without a permit to reconcile by paying BD 500 (USD 1,326) for a first-time offence. The LMRA law makes no distinction between workers with expired permits and those working without a permit. Additionally, migrant workers cannot independently renew their visas without their employer’s permission. According to the LMRA Law, migrants found working without a valid permit face a fine of up to BD 100 (USD 265), along with deportation and a ban from re-entry for three years.

For all the above violations, fines must be paid within 14 days of the reconciliation offer from the authorities. Once the settlement amount is paid in full, any criminal case and its consequences will be resolved. The LMRA Board of Directors will issue guidelines specifying the controls and procedures for reconciliation under the new amendment.

With this decision, Bahrain joins other Gulf states, such as Oman and the UAE, in recently offering employers of migrant workers the option to pay a reduced fine to resolve their situation and avoid criminal charges.

In Bahrain, migrant workers will now have the opportunity to rectify their status without facing conviction or deportation. However, the BD 500 fine is likely beyond the reach of many low-income migrant workers, who make up the majority of the workforce. Over 70% of migrants in Bahrain’s private sector earn less than BD 200 a month.

Importantly, the decision overlooks the fact that migrants are often victims of employers who cancel or fail to renew their permits. Migrants have little control over their permit status and frequently suffer due to employers’ abuses or negligence.