01
Private Sector Labour Law
Law 36/2012 with amendments regulates contracts, wages, working time, leave, discipline, termination and disputes. A condition more favorable to the employee may apply in excess of the statutory minimum; mandatory guarantees cannot be canceled by agreement.
02
The contract is built around the actual role
- Parties
- Employer CR and employee identity
- Role
- Title, duties, location and reporting line
- Term
- Fixed or indefinite; commencement
- Pay
- Basic wage, allowances, bonus and cycle
- Time
- Hours, rest days, shifts and overtime
- Exit
- Notice, handover and lawful restrictions
The trial must be expressly agreed upon and usually does not exceed three months; for certain occupations a different limit is possible. The current list is checked before use.
03
Working hours and overtime
The normal maximum is eight actual hours per day and 48 hours per week. For Muslim workers, a reduced limit of six hours per day and 36 hours per week applies during Ramadan. The schedule takes into account breaks, weekly rest and statutory overtime premiums.
- Normal
- Up to 8 hours per day / 48 per week
- Ramadan
- Up to 6 / 36 for Muslim workers
- Breaks
- No excessive continuous work
- Overtime
- With legal compensation and limits
- Records
- Timesheets, approvals and payroll
04
Annual, sick and special leave
After a year of service, annual leave is at least 30 days with payment at the rate of 2.5 days per month; for a shorter period - proportionally. Sick, maternity and other special leave are issued in accordance with the law and supporting documents.
Planning, carry-forward and settlement.
Medical evidence and statutory pay bands.
Protected holidays and guarantees.
Calendar and compensation at work.
05
Foreign employee: first work permit
A foreigner requires an official permit from a specific employer before starting work. You cannot work on a visit visa or actually for another employer. Employer bears permit fees; profession, workplace and actual duties must comply with the LMRA.
- 01Position test
Profession, Bahrainisation, quota and activity.
- 02Offer
Passport, qualifications and terms.
- 03LMRA permit
Receive before commencement.
- 04Arrival
Residency, biometrics and medical steps.
- 05Onboarding
SIO, WPS, bank and personnel file.
06
Wages Protection System in 2026
The employer appoints a Wage Responsible Person, maker/checker, maintains employee and bank/wallet data, uploads a salary file and ensures timely payment through a CBB-licensed method. Payroll is checked against the contract, attendance, leave and SIO.
08
Termination: grounds, procedure, calculation
For an indefinite contract, the usual written notice is at least 30 days, unless a longer period is legally agreed upon. Protected reasons, performance evidence, disciplinary steps, accrued leave, final salary, gratuity periods, permit cancellation and handover are checked.
09
A documented system wins the argument
- Evidence
- Contract, policies, attendance, warnings and payroll
- Complaint
- Internal route and labor authority
- Settlement
- Amounts, release and lawful limits
- Court
- Procedure and deadlines
- Immigration
- Termination does not replace LMRA action
10
HR compliance calendar
- 01
Check contracts, LMRA professions and duties.
- 02
Check WPS roles, salary files and dates.
- 03
Agree on SIO wages and gratuity contributions.
- 04
Maintain leave, overtime and disciplinary records.
- 05
Before exit, calculate amounts and immigration actions.
07
SIO and end-of-service gratuity of foreigners
From March 1, 2024, the employer makes SIO monthly contributions for covered non-Bahraini employees: 4.2% wages for the first three years of service and 8.4% for subsequent years. SIO pays lump sum upon termination of employment. The period before the start of the regime remains a separate employer liability.