Labour Court awards manager more than BD 33,000 for unpaid wages and benefits

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Manama: The First High Labor Court has ordered a company to pay a manager more than BD 33,000 in compensation for delayed wages, annual leave allowance, end-of-service benefits, and legal interest.

Under the ruling, the court ordered the company to pay BD 21,658 in unpaid wages, along with legal interest calculated at 6% annually for wages delayed for up to six months from the date they became due. The interest rate increases by 1% for each additional month of delay, up to a maximum of 12%, until full payment is made.

The court also ordered the company to pay BD 1,673 as compensation for annual leave, BD 9,256 as an end-of-service bonus, and to provide the plaintiff with a certificate of experience.

According to lawyer Abdul-Azim Habil, the plaintiff joined the defendants on February 1, 2015, as an office manager under a fixed-term employment contract for one year, with a monthly salary of BD 1,850. The lawyer said the company failed to pay the remaining BD 840 of the salary for August 2024, in addition to wages for the period from September 2024 until August 5, 2025.

The plaintiff’s employment contract was terminated on August 5, 2025, without payment of his outstanding labour entitlements, prompting him to file the lawsuit.

In its ruling, the court referred to Article 116 of Law No. 36 of 2012 (Private Sector Labour Law), which entitles workers not covered by the Social Insurance Law to an end-of-service bonus calculated at half a month’s wage for each of the first three years of service and one full month’s wage for each subsequent year, calculated proportionally for partial years.

The court noted that the plaintiff is a foreign national and that the defendant failed to provide evidence that the end-of-service bonus had been paid or settled. As a result, the court awarded BD 9,256.944, calculated based on the basic salary only.

Regarding unpaid wages, the court cited Article 46(1) of the Private Sector Labour Law, which requires employers to pay wages through approved mechanisms and does not absolve them of liability unless payment is proven. The defendant failed to provide proof of wage payment through channels licensed by the Central Bank of Bahrain, making it liable for unpaid wages and late-payment interest under Article 40(C) of the law.

The court established that the employment relationship began on May 4, 2015, based on the employment contract and work permit issued by the first defendant, EPS LLC. The plaintiff’s initial compensation included a basic salary of BD 1,000 and BD 600 in allowances, later increased by agreement to a total monthly wage of BD 1,850, with the basic salary eventually set at BD 1,250 and allowances remaining at BD 600.

The ruling confirms the employer’s obligation to settle all labour entitlements upon termination of employment.