Shura Council approves staggered fines for work permit breaches

TDT | Manama

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Lump-sum fines for labour breaches are out, with a decree-law slashing penalties in half and giving businesses more time to settle violations winning Shura Council approval yesterday.

The move, already cleared by Parliament on the final day of 2024, replaces immediate BD1,000 fines with a staggered system ranging from BD100 to BD300, giving firms up to 14 days to sort out expired work permits before tougher penalties kick in.

The decree-law, issued by His Majesty King Hamad bin Isa Al Khalifa in August last year and now retroactively endorsed by the upper house, took effect the next day.

It replaces blanket fines with a tiered system that gives employers more time to fix violations before being hit with heavier penalties.

Committee rapporteur Talal Mohammed Al Manai said the overhaul was about keeping businesses running while ensuring the law is followed.

“Most breaches aren’t the result of bad intentions, but rather the day-to-day mess of running a business. This decree-law makes sure companies can comply without being crushed under penalties that don’t fit the circumstances,” he said.

Acting Labour Minister Yousif Khalaf defended the changes, saying the old rules were too rigid and left businesses tangled in red tape.

“The government’s review teams found that many violations weren’t deliberate. The system itself made it too easy to slip up,” he said.

The Chamber of Commerce and Industry had also pressed for a rethink, arguing that small businesses were particularly exposed under the old rules.

Dr Jehad Al Fadhel, the Shura Council’s Second Deputy Chairperson, said the shift was necessary.

“This is about correction, not punishment. The goal isn’t to penalise businesses into shutting down but to help them fix mistakes,” she said.

She asked for recent figures on how many firms had opted for reconciliation and sought clarification on why repeat offenders were now eligible.

Khalaf said the government’s review had shown that many breaches came down to bureaucratic tangles rather than intentional misconduct.

“The clampdown was backfiring. Too many firms were getting tripped up by a process that was hard to navigate, not because they were deliberately breaking the rules,” he said.

Labour Market Regulatory Authority (LMRA) Chief Executive Nibras Talib admitted that excessive paperwork had been a problem.

“Even something as basic as a permit renewal was a hassle,” he said.