BUSINESSES that are fully owned by expatriates may stop receiving support from Bahrain’s labour fund, if MPs have their way.
Parliament is set to debate and vote on amendments to the 2006 Labour Fund Set-up Law which would deal a blow to companies that are 100pc owned by foreigners, by making them ineligible for Tamkeen’s training support initiatives, schemes and programmes.
Under the legislation, all allocated spending would be restricted to businesses with Bahraini shares or stocks.
The government has, however, called for a rethink, asserting that Tamkeen’s initiatives target Bahraini workers and their development, growth and promotion within foreign businesses and enterprises that are authorised through local commercial registrations (CRs).
“Tamkeen is supporting establishments in Bahrain and not in any other country,” the government said, in writing.
“The move contradicts the set-up of Tamkeen and its goals of supporting the national workforce.
“It would lead those fully-owned foreign establishments to not consider citizens for jobs and this harms our Bahrainisation drive.
“This also contradicts government’s policy as we are seeking to boost financial growth and attract Arab and international capital.”
The government added that the proposed move would be unfair.
“All expat-owned businesses make payments to the Labour Market Regulatory Authority (LMRA) for the foreigners they hire,” the government pointed out.
“In return, they expect support for wages, allowances and training given to Bahraini recruits, similar to the help we offer to any other Bahrain-registered commercial entity, fully owned by Bahrainis or partially owned by foreigners.”
Meanwhile, Tamkeen told MPs in writing that the amendments, if implemented, would also deal a blow to the national economy.
“We support Bahrainis in commercial establishments regardless of its ownership,” it said.
“This restriction will not help create job opportunities; it may reduce them as those establishments wouldn’t reap benefits for hiring or promoting Bahrainis on par with expats.”
The Industry and Commerce Ministry revealed that there were 75,931 active CRs fully or partially owned by foreigners until October 2023.
It also highlighted that 456 CRs were cancelled for varying violations between 2021 and 2023, which the ministry stressed showed market stability through current legislations.
However, the ministry said it had no jurisdiction to give opinion on the proposal, asking MPs to refer to the government’s stand.
The Bahrain Chamber backed MPs’ amendments while also calling for a comprehensive review of the current support system. Parliament’s services committee has recommended giving the legislation the go-ahead.
MPs will also discuss during their weekly session on Tuesday parliamentary proposed amendments to the 2006 Labour Market Regulatory Law presented by five MPs led by Jalal Kadhem.
Under the proposal, Bahraini employers could be exempted from paying the repatriation costs of deceased expatriate workers.
Also, employers would be relieved of all responsibilities and expenses of expatriate workers who are set to be deported.
The proposal further states that the Interior Ministry would initiate necessary procedures to repatriate the deceased, with the expenses footed by the Labour Market Regulatory Authority.
The legislation also obliges expatriates to complete two years before changing sponsors rather than the current one year. It gives them a month’s grace period to complete formalities, if found in breach of labour regulations.
The LMRA rejected the amendments, asserting that tough action was already being taken against violators.
A total of 4,811 foreigners were deported between January and November last year for work violations, it said.
The legislation has been backed by the Bahrain Chamber and both labour union federations.
The National Institution of Human Rights also gave the go-ahead indicating that the proposed amendments did not breach human or international rights.
mohammed@gdnmedia.bh
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