MPs Urge Six-Month LMRA Fee Relief for Firms

TDT | Manama

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A six-month break from Labour Market Regulatory Authority fees is being sought under an urgent proposal from MP Abdulwahid Qarata and four other MPs, who say firms are under strain as income falls and costs climb.

The proposal calls for a full waiver of all fees charged by the authority, including those linked to issuing and renewing licences and work permits, sponsorship transfers, residency renewals tied to work contracts, annual work contract charges, recruitment fees and any other sums paid by companies for services it provides.

In their explanatory note, the MPs say businesses in Bahrain are going through exceptional strain, with income in some key trades said to have fallen by 40 to 60pc. Construction, tourism, retail and logistics are named among the hardest hit. The note says many small and medium-sized firms have shut, while thousands of Bahraini and expat jobs have been lost.

It says higher labour costs, energy bills, rents and international shipping charges have left many firms short of cash and unable to pay suppliers, banks and state bodies. Fees charged by the Labour Market Regulatory Authority, the MPs say, have added to that pressure. For a mid-sized company, they argue, the yearly bill can range from tens of thousands of dinars to hundreds of thousands, based on workforce size.

The proposal says the waiver should take effect at once and last for six full months. It also calls for old dues owed by companies to be rescheduled without late fines or interest. The relief would apply to all affected firms, especially small and medium-sized businesses, and could be extended in line with how the economy develops.

The note says the step would help keep the labour market from slipping into a wider wave of lay-offs and give firms room to carry on without shutting down or going bust. It adds that the loss in fee income would be limited and temporary when weighed against the social and economic cost of higher unemployment, the closure of thousands of businesses and weaker faith in Bahrain’s investment climate.