Expat tax strike planned across Bahrain
HRW praises Bahrain labour law reforms
Bahrain scraps sponsorship system, Gulf first
Bahrain on Saturday became the first Gulf state to abolish controversial labour laws that restrict the free movement of workers amid praise from rights groups and criticism from local industry
The government now takes over responsibility for the sponsorship of hundreds of thousands of expatriates in the Gulf island kingdom previously held by foreign workers’ employers.
Gulf states operate a system where employees’ work visas are issued through their employer. The sponsorship system has been criticised for giving employers too much power over workers and leaving them open to abuse and exploitation.
Announcing the labour law shake-up in May, Bahrain Labour Minister Majeed al-Alawi likened the sponsorship system to slavery and said the laws would bring the kingdom into the 21st century.
Under the new system, government agency the Labour Market Regulation Authority (LMRA) is responsible for issuing two-year work visas once an employment contract has been signed.
An expatriate will be able to change jobs freely on the visa provided a three-month notice period is given.
Previously employers were able to block expatriates from switching jobs and even place a ban on them for working in the country, a practice still carried out in other Gulf states.
Human rights groups have greeted the move with cautious optimism, calling it a step in the right direction but reserving final judgement to see how the system will be implemented and enforced. Many of Gulf states’ best drafted laws fail due to a lack of enforcement.
“Bahrain deserves enormous credit for being the first to make concrete reforms. Other countries should follow suit,” Human Rights Watch said.
However, the U.S.-based advocacy group called on Bahrain to extend the reforms to cover Bahrain’s around 70,000 migrant domestic workers, who will stay under the sponsorship of their employer.
“The government should move quickly to extend the sponsorship reforms to domestic workers and to bring them under the protection of the labour law,” it said.
BUSINESS CONCERNS
Business groups, already unhappy about a monthly expat tax companies have to pay to employ foreigners, are also calling for clarification on the implementation of the system over fears they will be hit by further costs.
The LMRA requires all companies to pay a monthly charge of 10 dinars ($26.50) for every expatriate they employ.
The LMRA introduced the tax in July 2008 to help fund Tamkeen, which offers training and consultation services to small businesses, part of wider reforms aimed at helping boost local participation in the workplace.
Since the tax was brought into force businesses in sectors from construction to fishing have held protests and strikes calling for the levy to be abolished.
Companies are concerned about spending money recruiting staff only to see them leave after three months and are calling for increased government protection.
Bahrain, like all Gulf states, is completely reliant on foreign workers to fuel its economy, making the cost hiring staff much more expensive. Around 60 percent of Bahrain’s 1.1 million population is made up of expatriates.
“Don’t you think that (staff leaving after three months) would disturb the operation of the first employer?” Ebrahim Zainal, first vice chairman of the Bahrain Chamber of Commerce and Industry, was quoted as saying by UAE daily the National on Saturday.
“And it would upset and may cause him a lot of losses and damages because to get a replacement it would take a long time and take extra money. “We expect the Labour Ministry should protect the private sector on things like that.”
The Bahrain Chamber, which has 10,000 members, is calling for the period before an employee can leave a company to be extended to six months.
Other Gulf states have hinted at similar labour law reforms, but none have made any concrete steps.
“Most governments in the region acknowledge that the current system allows employers to abuse workers, but have wasted years debating alternatives without taking action,” said Human Rights Watch.
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