MORE than 270 Bahraini employees dismissed by a delivery company will be offered alternate jobs and provided with unemployment allowances, according to the Labour Ministry.
It said in a statement yesterday that the action comes after reports were circulated online that the company specialising in delivering food and groceries was closing its Bahrain branch and had laid off 274 Bahraini workers.
It reportedly offered the affected employees jobs at its branches in other countries.
“A meeting was held immediately with the director of the concerned company to determine its decision,” said the statement.
“We talked about taking the necessary measures to guarantee workers’ rights, including paying any dues resulting from the termination of employment, in accordance with provisions under the 2012 Private Sector Employment Law,” it added.
“Subsequently, the ministry formed a special work team to find alternate jobs for those affected based on their experience and qualifications.
“All dismissed workers will benefit from unemployment compensation at a rate of 60 per cent of the insured wage for nine months or until they obtain a job after completing the registration process in the electronic system designated for this purpose.”
The ministry expressed its keenness to follow up on all cases of dismissals due to total or partial closure of any private sector establishment.
It also stressed its role in examining the reason for the termination and the action’s legitimacy from a legal standpoint.
Earlier yesterday, 70 of the dismissed Bahraini employees demonstrated at the Labour Ministry in Zayed Town, demanding intervention.
In an internal memo, the company told employees that it had already notified the ministry about its intention to close its Bahrain branch and lay off the workers.
“We regret to inform you that the company has decided to close its branch in Bahrain with immediate effect as it is no longer financially feasible for the branch to continue its operations here,” said the memo.
“This is in view of the fact that we have a sister company established and operating in Bahrain.
“Your financial settlement including salary to date, salary in lieu of any outstanding leave, compensation as per the provisions of the Private Sector Employment Law, in particular Article 110, and other sums payable to you will be paid on or before May 15, 2024.”
Meanwhile, company refund team leader Ahmed Ibrahim, 27, who is amongst the affected employees, said that the management had informed them last week that the company was facing issues in Bahrain.
“The company has been in Bahrain for the past four years and until recently donated to Gaza and other charitable events, so claims of financial infeasibility are not true,” he said.
“The letter sent to us states that it is illogical for two sister companies to exist and provide the same service.
“Even with the deal to get end-of-service benefits for four years and unemployment allowances, this doesn’t cover our monthly wages and commitments, it just puts us in a miserable state. I have a new-born son.”
To avoid any such issues in future, he urged the authorities to force companies to present guarantees on their continuity, commitments and obligations.
“The company benefited from Tamkeen wage support and training for Bahraini workers and after the three-year period decided to stop operations,” said Mr Ibrahim.
MPs Jalal Kadhem and Hamad Al Doy said letting go of 274 Bahraini employees was catastrophic despite the company receiving financial support from Tamkeen.
“So, the company was fine but days after its three-year deal with Tamkeen ended, a sister company appeared although it has been in Bahrain for several years,” said Mr Kadhem.
mohammed@gdnmedia.bh