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Bahrain: Proposal To Lower Business Dispute Threshold Set For Parliament Review

The Daily Tribune, 1 November 2024: Parliament is scheduled to discuss a bill that proposes lowering the minimum claim value managed by the Bahrain Chamber for Dispute Resolution (BCDR) from 500,000 to 100,000 dinars.

This adjustment would modify the Chamber’s monetary jurisdiction, potentially giving companies a faster way to settle commercial disputes.

Supporters of the bill believe this change could reduce court pressures and enhance Bahrain’s reputation as a business-friendly hub by offering businesses quicker and more accessible resolutions.

The proposal seeks to remove barriers that currently limit access to the Chamber, opening its services to a wider range of commercial claims.

By revising the jurisdictional threshold, the bill is intended to create a more accessible route for firms to resolve financial and business conflicts, thus adding another layer to Bahrain’s appeal as a place for investment.

The BCDR, however, has voiced reservations.

They argue that the bill’s goal of speeding up case resolutions may already be met through current procedures.

The BCDR operates on similar timelines to the courts, with both allowing for an initial two-month period to manage cases, which can be extended by two months as required.

The Chamber also stresses the need to balance its financial health against the costs of its services.

Fees generated from cases above 500,000 dinars form a critical part of its revenue.

Lowering the threshold could cut these earnings by 20 to 80 per cent per case, depending on the claim value, and reduce the funds available for maintaining services.

This income is essential for covering the costs of both mandatory and optional services, such as mediation and arbitration, and for allowing the Chamber to invest in future projects.

As more cases are likely to fall under the Chamber’s remit if the bill passes, the institution foresees a risk of overstretching its resources, which may strain its ability to sustain service quality at current levels.

Financial strain could hinder the BCDR’s ambitions to fund new initiatives and to preserve its standing on the regional and international stage.

Despite these concerns, the Legislative and Legal Affairs Committee has recommended the proposal, urging its approval in the upcoming session.

The committee sees this as a practical move towards making dispute resolution faster and easier for Bahrain’s business sector.

This proposal aligns with Bahrain’s ambition to refine its legal and economic systems in ways that encourage investment and development.

Should it pass, the bill will alter the process for managing economic disputes, aiming to reduce time in legal proceedings and improve judicial services within the Kingdom.

By expanding the Chamber’s jurisdiction to cover claims over 100,000 dinars, the legislation has the potential to make Bahrain an even more attractive location for businesses, while the Chamber faces the challenge of sustaining financial stability under the new arrangement.

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Bahrain: Private Sector Employers Must Notify Authorities Before Suspending Workers

The Daily Tribune, 29 October 2024: Employers in Bahrain’s private sector could soon need to notify authorities before suspending workers, and dismissed employees might get twice as long to file compensation claims, as Parliament debates new rules today.

The government’s draft law, submitted to the Council of Representatives has proposed two main updates to Bahrain’s Labour Law, introducing added checks on employers’ actions and extending protections for workers.

One proposal would require employers to notify authorities before suspending workers for serious misconduct.

Currently, employers have some discretion to temporarily suspend a worker in cases of harm or serious offences, but this adjustment would mean they must inform relevant authorities first, limiting employers’ ability to act independently in such cases.

Another proposed change would extend the timeframe for workers to file a claim after losing their job, increasing it from 30 days to 60.

Supporters say this additional time could help workers prepare stronger cases, though the government cautions that delaying claims might make it harder to gather reliable evidence and could slow the resolution of disputes.

In its memo, the government expresses concerns that these changes may disrupt the balance between worker protection and workplace stability.

Officials argue that requiring employers to notify authorities of suspensions could make it harder to handle misconduct, which might unsettle the work environment.

They also warn that an extended claim period could affect evidence quality, as time may erode details and reduce clarity in witness accounts.

The government also questions the proposed three-month cap on investigations by the Public Prosecution, arguing that it may infringe on judicial independence by imposing a strict timeline on prosecutors.

While recognising Parliament’s aim to strengthen worker rights, the government suggests a balanced approach that keeps workplaces steady.

Today’s debate may bring about changes to Bahrain’s employment laws, with these proposals potentially influencing how workplace disputes are handled in the future.

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