Plans to cap domestic helper fees could ‘backfire’

TDT | Manama

Email: mail@newsofbahrain.com

Plans to cap the fee for bringing in domestic helpers may backfire, the government has warned, arguing that a single price would dull rivalry among Bahrain’s recruitment offices and leave households with fewer options.

In a paper sent to the Shura Council, the Cabinet said that if every agency must charge the same amount, many would focus only on workers from countries that cost less to recruit yet yield a higher mark-up, crowding out other nationalities.

The government set out its own moves to keep a closer eye on the trade. A web portal is being built to log every step of the hiring process for foreign workers, domestic staff included.

When the Labour Market Regulatory Authority (LMRA) spots a sudden rise in agency fees, it orders the firm involved to spell out the reason, then decides on any action.

Audited accounts

The government is also weighing a rule that would force agencies to file audited accounts on a regular basis so inspectors can see how much profit they make and judge if a cap on margins is needed.

Talks are in progress with labour-sending countries on agreements that would shave down recruitment costs and make direct hiring simpler.

While price control sounds helpful, the Cabinet insists rigid rates could lead to poorer service and a thinner spread of choices for families.