Bahrain: Introduces Progressive Financial Security System for Expatriate Workers

Arab Times, 3 December 2024: Expatriates employed in Bahrain’s private sector have a significant reason to celebrate as the Kingdom unveils a progressive system designed to secure their financial future upon job termination.

This new initiative introduces a streamlined end-of-service indemnity (EOSI) system for non-Bahraini workers, marking a pivotal advancement in labour rights reform.

The mechanism ensures that expatriates receive their accumulated benefits without delay, addressing a long-standing issue of traditional payment holdups.

Employers are now mandated to make monthly contributions to the Social Insurance Organisation (SIO), revolutionising the management of indemnity payments.

For many expatriates, the challenge of navigating complex administrative procedures has been a source of frustration.

The SIO has addressed this by implementing an intuitive online system that simplifies the process.

Upon job termination and registration with the Labour Market Regulatory Authority (LMRA), workers can easily claim their benefits through SIO’s e-services.

The system is designed to be user-friendly, ensuring that even intricate tasks, such as attaching proof of an International Bank Account Number (IBAN) in PDF format, are straightforward and efficient.

This reform represents a landmark moment for expatriate workers in Bahrain.

By centralising payments through the SIO, the Kingdom is demonstrating its commitment to fairness, transparency, and the financial well-being of its expatriate community.

A comprehensive guide to the new process is available on the SIO website, offering workers a clear path to securing their entitlements.

For many, this reform not only provides financial relief but also fosters a renewed sense of inclusion within Bahrain’s evolving workforce landscape.

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Bahrain: New Regulations On Medical Devices And Products

The Daily Tribune, 26 November 2024: The Chairman of the Supreme Health Council has announced new regulations aimed at ensuring the quality of medical devices and products in Bahrain.

The decision mandates that all establishments must obtain a licence from the National Health Regulatory Authority (NHRA) to market contact lenses, medical devices, and lasers used for cosmetic purposes.

Under the new regulations, all entities are required to secure a licence from the NHRA, and any activity related to medical devices and products is strictly prohibited unless conducted by a licensed establishment.

This move is intended to strengthen oversight and ensure that only approved products are available in the market.

Furthermore, the regulations stipulate that medical devices and products must only be used in health facilities that hold the appropriate licenses issued by the NHRA.

No device or product may be manufactured, imported, or marketed in Bahrain without prior registration with the NHRA and obtaining written permission for marketing.

The decision outlines that devices and products registered in Bahrain must come from one of the following reference countries: Saudi Arabia (SFDA), the United States (FDA), Australia (TGA), Japan (PMDA), the United Kingdom (MHRA), Ireland (HPRA), Switzerland (Swissmedic), France (ANSM), and Germany (BfArM).

Registration with one of these countries is required, along with payment of the applicable fees.

Establishments are also obligated to store and transport medical devices and products according to the manufacturer’s instructions.

Failure to comply may result in the NHRA revoking the registration of the medical device or the establishment’s licence.

Furthermore, the marketing and advertising of medical devices and products are prohibited without prior authorisation from the NHRA and payment of the required fees.

However, low-risk home medical devices, such as digital thermometers and blood pressure monitors, are exempt from this requirement.

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Bahrain: Parliament Calls for Regulation of Private Hospitals

The Daily Tribune, 13 November 2024: The Parliament has called on Bahrain’s health regulator to address high fees at private hospitals accusing some of creating a “false image” of quality by inflating costs – a step towards fairer healthcare for all.

The proposal has urged the National Health Regulatory Authority (NHRA) to step in and monitor private healthcare fees.

Parliamentarians have pointed out that many citizens turn to private care due to long waits at public hospitals, only to face the added strain of high costs.

The CEO of Taj Medical Group has added perspective from the private sector, noting that recent regulatory price cuts have intensified competition but could also impact standards of care.

Certain hospitals have slashed fees to unsustainable levels in an effort to dominate the market, which can compromise quality.

There is no oversight on what private hospitals charge, inflated fees risk turning fair healthcare into a luxury rather than a basic right.

He has also emphasised that any monitoring should be grounded in carefully reviewed standards to ensure effective oversight, adding that robust criteria would be essential to maintain service quality without stifling the sector.

The proposal, now approved, calls on NHRA to make certain that healthcare remains fair and accessible to all, without placing undue financial burdens on citizens.

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Bahrain: 20% Bahrainisation Rule For Tenders Approved

The Daily Tribune, 20 November 2024: The Parliament has approved a proposal requiring companies bidding for government tenders to ensure at least 20% of their workforce is Bahraini.
The measure, designed to tackle unemployment and prevent misuse of Bahrainisation certificates, passed by majority vote, though some called for a more ambitious target.
The move seeks to give more jobs to Bahrainis in service contracts, with compliance overseen by the Labour Ministry or other relevant bodies.
Backers said it is a step towards reducing reliance on foreign workers in common roles such as consultancy and accounting.
Concerns were raised about companies potentially abusing the system to appear compliant.
Investigations showed firms gaining Bahrainisation certificates just to win tenders, undermining the purpose of the rule.
The Labour Ministry must ensure proper enforcement.
One of the proposal’s backers pointed to a growing trend of contracts going to foreign firms, stating that many of these deals involve general services that Bahrainis could easily handle.
By setting a minimum 20% Bahrainisation rate, more opportunities can be created for the local workforce.
While acknowledging the challenges faced by sectors like construction, there were calls for higher rates in less labour-heavy fields.
The 20% figure was described as a starting point, with suggestions for steady increases over time.
However, some dismissed the threshold as too low, advocating for a 50% minimum to better reflect the worth and skills of the local workforce.

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Bahrain: Government Employee Guide

Al Watan News, 6 November 2024: The Civil Service Bureau has issued a guide for government employees, serving as a reference for civil servants to determine work mechanisms, incentives, and allowances, while specifying a probationary period for employees not exceeding six months.

The guide emphasises the necessity for government employees to demonstrate loyalty and dedication to the Kingdom of Bahrain and its leadership, respect the constitution and the law, comply to official working hours, avoid conflicts of interest, prohibit accepting gifts, and maintain confidentiality and refrain from disclosing data when dealing with media, publishing, press, and social media.

Additionally, government employees are obligated to maintain a proper appearance and conduct, report violations, provide testimony when required, preserve public and private property, and exhibit respect and courtesy in work relationships with superiors, colleagues, clients, and other entities.

According to the guide, newly appointed permanent civil service employees, excluding those in senior positions and their equivalents, are subject to a six-month probationary period for evaluation, starting from the date of commencing work.

For educational positions subject to school vacations, the probationary period is set as a full academic year.

If an employee fails to demonstrate competence during the probationary period, the government entity may terminate their services.

The probationary period is included in the employee’s service duration if they are confirmed after the probationary period.

The employee’s competence is assessed through monthly evaluations conducted by their direct supervisor during the probationary period, which are then submitted to the department manager and the human resources division.

The employee’s service may be terminated during the probationary period by a reasoned decision from the competent authority if they fail to fulfill their job duties.

If the probationary period ends without the employee receiving a decision from the competent authority, they are considered confirmed.

Employees have the right to appeal the decision to terminate their service during the probationary period to the Grievance Committee of the government entity they worked for.

Employees may also resign during the probationary period, provided they notify their direct supervisor in writing within five working days.

Temporary employees are subject to a probationary period if their contract exceeds six months.

If they are permanently appointed to the position they held, their temporary service duration is included in their actual service, provided it is not less than six months, and they cannot be subjected to another probationary period.

The guide allows for the transfer of employees from one position to another within the same government entity or to another government entity.

It also permits the secondment of employees between government institutions not subject to the Civil Service Law or any other institution affiliated with countries or companies in which the government holds at least a 50% stake, or to Arab, regional, foreign, and international governments and bodies.

Regarding vacancies, there is an electronic service that allows government entities to internally advertise civil service vacancies through the ‘Vacancies’ system.

Incentive bonuses may be granted to employees who provide services and research that contribute to improving work methods, enhancing performance efficiency, or reducing costs, as a form of appreciation and to improve the quality of services provided to citizens.

Performance-related bonuses include the Professional Excellence and Exceptional Achievements Bonus, the Ideal Employee Bonus, the Suggestions Bonus, and the Letter of Appreciation or Commendation.

An employee cannot receive more than two performance-related bonuses or one performance-related bonus and an incentive allowance within a single year.

An employee cannot be considered for an incentive bonus if they have previously been disciplined until the penalty is expunged.

Bonus payments are suspended for employees under investigation until the accountability procedures are completed, and if they are disciplined, they are deprived of the bonuses.

The guide also emphasises that an allowance is a monetary amount granted to an employee on a continuous basis and is not deducted during paid leave.

Allowances include periodic, social, cost-of-living, incentive, housing, special, car, transfer, clothing, and communication allowances.

A compensation, on the other hand, is a monetary amount that is not paid during paid leave and is used to meet specific requirements, such as shift, nature of work, sea travel or diving, working in the Hawar Islands, dedication, guarding, nursing, driving, and others.

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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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