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A PARLIAMENTARY proposal to impose stricter procedures on employers planning to lay off workers for economic reasons was rejected by the Shura Council yesterday.
Members warned that the amendments would create ‘unrealistic burdens’ without measurable benefits.
The draft legislation submitted by Parliament in an amended form, sought to revise several provisions of the 2012 Private Sector Labour Law (Law No 36 of 2012).
Key elements included requiring employers to submit audited financial reports for the previous three years when notifying the Labour Ministry of plans to downsize, extending mandatory notice periods for layoffs and introducing a new article (110 bis) establishing a registry for such notifications.
The Shura Council weekly session yesterday was attended by Legal Affairs Minister and Acting Labour Minister Yousif Khalaf and Parliament and Shura Council Affairs Minister Ghanim Al Buainain.
Committee rapporteur Hala Fayez said the draft law would place excessive burden on both employers and the Labour Ministry.
“The proposed amendments complicate procedures and weigh heavily on employers without providing any practical return,” she said.
“They also impose accounting and administrative duties on the Labour Ministry that fall outside its remit, ignore non-economic reasons for terminating employment and duplicate existing legislative provisions – particularly Article 111 of the current law. Such measures would ultimately discourage long-term hiring and push businesses toward fixed-term contracts.”
The draft legislation was returned to Parliament for reconsideration.
Services committee chairwoman Dr Jameela Al Salman said the amendment would not have achieved its stated objectives.
“The proposal would have burdened employers and it would have also strained the Labour Ministry, which would have had to prepare extensive reports,” she said.
“The current procedures for contract termination followed by the ministry are adequate and well-defined.”
Several members cautioned against creating obstacles that could hinder job creation and investment.
Mr Al Nuaimi
Abdulla Al Nuaimi emphasised the importance of productivity and competitiveness among Bahraini youth.
“Bahraini youth are driven by competitiveness and performance,” he said.
“A dedicated employee will not lose their job, regardless of the economic justifications cited. Employers value and retain hardworking staff and even if they downsize, they will consider them for future opportunities.
“What we need are regulations that cultivate diligence and ambition, while acknowledging that Bahraini employers are already committed to providing opportunities for their fellow citizens.”
Other members warned that the proposed amendments could unintentionally deter companies from hiring full-time staff or investing in expansion, due to the added administrative burden and risk of protracted procedures.
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