Bahrain Labour Law Compliance: A Guide for Employers
Bahrain’s labour law framework is governed primarily by Legislative Decree No. 36 of 2012 (the Labour Law in the Private Sector) and its implementing regulations. Employers operating in the Kingdom must comply with a comprehensive set of rules covering working hours, leave, termination, wage protection and end-of-service benefits. Non-compliance can result in administrative fines, blacklisting and legal action by the Labour Market Regulatory Authority (LMRA). This guide covers everything you need to know about Bahrain labour law compliance.
Published: 25 July 2026 | Last updated: 25 July 2026 | Author: Mustafa Hasan, Lead Auditor | Reviewed by: Bitrixme Compliance Team
Key Takeaways
- Bahrain’s Labour Law (Legislative Decree No. 36 of 2012) sets minimum standards for working hours, leave, termination and end-of-service benefits.
- The LMRA enforces compliance through inspections, fines and employer blacklisting for serious or repeated violations.
- The Wage Protection System (WPS) requires all salaries to be paid through the LMRA’s electronic system within seven days of the due date.
- End-of-service benefits are calculated at 15 days’ basic salary per year for the first three years and one month per year thereafter.
- Employers must conduct annual internal compliance audits and maintain proper records for inspection.
Overview of Bahrain’s Labour Law Framework
Bahrain’s private sector labour law is set out in Legislative Decree No. 36 of 2012, which replaced the earlier 1976 law. The law applies to all private sector employees in the Kingdom, with limited exceptions for domestic workers, agricultural workers and family businesses. The Ministry of Labour and the LMRA share responsibility for enforcement, with the LMRA taking the lead on work permit regulation, inspections and the WPS.
Since 2020, Bahrain has introduced several amendments to strengthen worker protections, including tighter rules on unpaid wages, enhanced penalties for labour law violations and mandatory compliance audit requirements for employers above certain thresholds.
Key Labour Law Requirements
Working Hours
Standard working hours in Bahrain are 48 hours per week (8 hours per day, 6 days per week). During Ramadan, working hours are reduced to 36 hours per week (6 hours per day) for Muslim employees. Overtime is payable at 125 per cent of the normal hourly rate for daytime overtime and 150 per cent for work performed between 9:00 pm and 6:00 am. Friday is the statutory weekly rest day, although employers may substitute another day with LMRA approval.
Annual Leave
Employees are entitled to 30 days of annual leave after one year of continuous service. Leave is paid at full basic salary, and unused leave must be carried forward or paid in lieu. Employers may set leave dates in accordance with operational requirements, provided that the employee receives at least 14 consecutive days of leave each year.
Sick Leave
Employees are entitled to 15 days of fully paid sick leave per year, followed by 20 days at half pay and 20 days at 75 per cent pay, for a total of 55 days. Sick leave must be supported by a medical certificate from a licensed practitioner. If the illness exceeds 55 days, the employer may terminate the employee with end-of-service benefits.
Maternity Leave
Female employees are entitled to 60 days of maternity leave, comprising 45 days at full pay and 15 days at half pay. An additional 15 days of unpaid leave may be taken if medically necessary. Employees must have completed at least 12 months of service to qualify. Employers are prohibited from terminating a female employee during maternity leave or within six months of her return to work.
Public Holidays
Bahrain observes a minimum of 14 public holidays per year, including National Day, Eid al-Fitr, Eid al-Adha, Islamic New Year and Ashura. Employees who work on a public holiday are entitled to 150 per cent of their normal wage plus a compensatory day off.
LMRA Regulations and the Wage Protection System
The Labour Market Regulatory Authority is the primary enforcement body for Bahrain labour law compliance. The LMRA operates the Wage Protection System (WPS), which mandates that all salaries must be paid through the LMRA’s electronic platform within seven days of the contractual due date. Key WPS requirements include:
- All employees must be registered in the WPS portal with accurate salary details.
- Salary payments must be made via bank transfer to the employee’s Bahrain-based bank account.
- Monthly WPS reports must be submitted to the LMRA confirming payment compliance.
- Late or partial payments trigger automatic alerts and escalating penalties.
- Three consecutive months of non-compliance can result in suspension of new work permit applications.
The LMRA also conducts regular and unannounced workplace inspections. Inspectors may request employment contracts, wage records, attendance logs, leave records and work permit documentation. Employers must retain all personnel records for at least two years following the end of employment.
End-of-Service Benefits
End-of-service benefits (ESB) are mandatory for all employees who complete at least one year of service. The calculation is based on the employee’s basic salary at the time of termination or resignation:
| Years of Service | Entitlement (Basic Salary) |
|---|---|
| 1 – 3 years | 15 days per year |
| 4 years and above | 1 month per year (after the first 3 years) |
The total ESB is capped at the equivalent of 12 months’ basic salary for employees who resign and 18 months for employees who are terminated or retire. Employees who are dismissed for gross misconduct forfeit their ESB entitlement. Employers must pay ESB within one week of the termination date.
Termination Procedures and Notice Periods
Bahraini labour law requires employers to follow strict procedures when terminating an employment contract. The notice period depends on whether the employee is paid monthly or weekly:
| Payment Type | Notice Period |
|---|---|
| Monthly-paid employees | 30 days |
| Weekly-paid employees | 30 days |
| Probation period (first 3 months) | No notice required |
Termination without notice (summary dismissal) is permitted only in specific circumstances, including: serious misconduct, repeated violation of safety rules, conviction for a crime involving dishonesty, or absenteeism for more than 15 consecutive days without valid reason. The employer must provide a written termination notice and pay all accrued benefits within one week.
Labour Disputes and the Labour Court
Labour disputes in Bahrain are handled by the Labour Court, established under Law No. 48 of 2014. The court has exclusive jurisdiction over individual and collective labour disputes. The process follows three stages:
- Conciliation: The Ministry of Labour attempts to mediate between employer and employee. Most cases are resolved at this stage.
- Labour Court filing: If conciliation fails, either party may file a claim with the Labour Court. Claims must be filed within 12 months of the dispute arising.
- Appeal: Decisions of the Labour Court may be appealed to the Court of Appeal within 30 days.
Employers should maintain thorough documentation of all employment decisions, disciplinary actions and communications to defend against unfounded claims. Failure to respond to a Labour Court claim results in a default judgment against the employer.
Compliance Audit Requirements
Employers with more than 50 employees must conduct an annual internal compliance audit covering all aspects of labour law. The audit should assess compliance with:
- Employment contract requirements (written contracts in Arabic, with English translation).
- WPS registration and monthly reporting compliance.
- Working hours, overtime and rest day records.
- Leave balances and entitlement calculations.
- End-of-service benefit provisions.
- LMRA work permit validity and renewals.
- Employee classification (full-time, part-time, temporary).
Audit findings must be documented and corrective actions tracked. The LMRA may request audit records during inspections.
Penalties for Non-Compliance
Penalties for violating Bahrain’s labour law range from administrative fines to criminal prosecution in serious cases. The most significant penalties are summarised below:
| Violation | Penalty |
|---|---|
| WPS non-compliance (first offence) | Fine of BHD 100 – BHD 500 |
| WPS non-compliance (repeat offence) | Suspension of work permit applications for 6 – 12 months |
| Employing workers without valid permits | Fine of BHD 200 – BHD 1,000 per worker |
| Failure to pay end-of-service benefits | Fine of up to BHD 1,000 plus ESB amount |
| Unpaid wages (three consecutive months) | Blacklisting by LMRA and potential suspension of all permits |
| Non-compliance with LMRA inspection | Fine of BHD 100 – BHD 300 per inspection failure |
| Breach of anti-discrimination provisions | Fine of BHD 500 – BHD 2,000 |
Frequently Asked Questions
What is the maximum probation period under Bahrain labour law?
The maximum probation period is three months for all employees. During probation, either party may terminate the contract without notice or end-of-service benefits. The probation period must be stated in the employment contract.
Can an employer terminate an employee without notice in Bahrain?
Yes, but only in specific circumstances defined by law, including gross misconduct, criminal conviction involving dishonesty, serious safety violations, or absenteeism exceeding 15 consecutive days without a valid excuse. The employer must document the reason and provide written notice.
How is end-of-service benefit calculated for an employee who resigns before one year?
Employees who resign before completing one year of continuous service are not entitled to end-of-service benefits. ESB eligibility begins after 12 months of service.
What records must employers maintain for LMRA inspection?
Employers must maintain employment contracts, wage records, attendance logs, leave records, work permit documentation and WPS compliance reports. Records must be retained for at least two years after the employee’s departure.
Is overtime mandatory in Bahrain?
Employers may require overtime, but it is limited to three hours per day (except in emergencies or exceptional circumstances). Total working hours including overtime may not exceed 12 hours per day.
What should an employer do if an LMRA inspection finds a violation?
The employer should immediately correct the violation, document the corrective action and respond to the LMRA within the prescribed timeframe. Seeking legal advice and conducting an internal compliance audit is strongly recommended to identify any other potential issues.
How Bitrixme Can Help
Bitrixme provides end-to-end labour law compliance services for employers in Bahrain. Our team conducts gap assessments, prepares compliance documentation, performs internal audits and represents employers during LMRA inspections. We also deliver WPS setup and training for HR teams. Contact Bitrixme today to schedule a compliance audit or reach out on WhatsApp for an immediate consultation.
Disclaimer: This article provides general guidance on Bahrain labour law compliance and does not constitute legal advice. Employers should consult qualified legal professionals for advice specific to their circumstances.
