Bahrain - Employment & Labour Laws and Regulations 2026 - Full Article

1. Terms and Conditions of Employment

1.1        What are the main sources of employment law?

The main source is Legislative Decree no. 36 of 2012 promulgating Bahrain’s Labour Law (“Bahraini Labour Law”).

1.2        What types of worker are protected by employment law? How are different types of worker distinguished?

The Bahraini Labour Law offers protection to all types of employees regardless of whether they are part-time, full-time, local or expatriate employees.  An employee is defined by the Bahraini Labour Law as every natural person employed in consideration of a wage with an employer and under his/her management or supervision.

1.3        Do contracts of employment have to be in writing? If not, are employers required to give employees specific information in writing?

Yes, contracts of employment must be in writing in Arabic, and recorded in duplicate; one copy of which shall be retained by each of the parties thereto.  If a contract is drawn up in a language other than Arabic, it must be accompanied by an Arabic version thereof, pursuant to Article 19 of the Bahraini Labour Law.  In absence of a written contract, the employee alone may establish all his/her rights by all methods of evidence.

1.4        Are there any minimum employment terms and conditions that employers have to observe?

Some of the employee rights set down by the Bahraini Labour Law represent the minimum threshold; such rights include 30 days of annual leave and 55 days of sick leave allowance, which comprises 15 days with full pay, 20 days with half pay and 20 days without pay.

1.5        Are terms and conditions of employment normally agreed through collective bargaining? Does bargaining usually take place at company or industry level?

Collective bargaining is recognised by the Bahraini Labour Law under Article 137; however, it is not a common practice in the Kingdom of Bahrain to agree on the terms and conditions of employment through collective bargaining.  As per the Bahraini Labour Law, bargaining may take place at company, business, industrial, professional or national level.

2. Employee Representation and Industrial Relations

2.1        What are the rules relating to trade union recognition?

Trade unions are governed by Legislative Decree no. 33 of 2003 promulgating the Law of Labour Unions (“LUL”).  For a trade union to be recognised, it must file its articles of association and the names of its founders with the Ministry of Labour and Social Development.  The recognition of a trade union is subject to its articles not violating any of the public order policies of the Kingdom of Bahrain.

2.2        What rights do trade unions have?

Trade unions have the right to attend member employees’ investigations, in addition to the right to assemble industrial strikes.

2.3        Are there any rules governing a trade union’s right to take industrial action?

Yes, Article 21 of LUL stipulates that trade unions have the right to assemble industrial strikes, subject to the following conditions:

1. It must have a peaceful aim for the members’ economic and social welfare. 
2. It must be approved by the majority of the given trade union members in an extraordinary general assembly through secret ballot. 
3. Employers must be notified 15 days in advance of the employees’ intention to assemble a strike. 
4. The strike shall not take place while the dispute is in the process of mediation or arbitration. 

Strike action at vital facilities that affect national security and the day-to-day life of citizens is prohibited.

2.4        Are employers required to set up works councils? If so, what are the main rights and responsibilities of such bodies and do they have co-determination rights?

Employees are not required to set up works councils.

2.5        Are employees entitled to representation at board level?

Employees are not entitled to representation at board level.

3. Discrimination

3.1        Are employees protected against discrimination? What types of discrimination are unlawful and on what grounds?

Employers are prohibited from discriminating between workers based on sex, ethnicity, language, religion and belief pursuant to Article 2 bis of the Bahraini Labour Law.  Such discrimination also covers discrimination in wages based on gender.

3.2        Are there any special rules relating to sexual harassment (such as mandatory training requirements)?

There are no mandatory training requirements, but Article 192 bis of the Bahraini Labour Law stipulates as follows: if any employee during his/her work sexually harasses any of his/her colleagues, either by reference, by word, by deed or by any other means, they shall be punished by imprisonment for a period not exceeding one year or by a fine not exceeding 100 Dinars. 

If the above is committed by the employer or his/her representative, he/she shall be punished by imprisonment for a period not less than six months or a fine not less than 500 Dinars, but not more than 1,000 Dinars.

3.3        Are there any defences to a discrimination claim?

Yes; however, it is subject to the Law of Evidence provisions whereby the employer may offer witness testimonies or other documents to substantiate the contrary.

3.4        How do employees enforce their discrimination rights and what remedies are available? Can employers settle claims before or after they are initiated?

Employees may enforce their discrimination rights through the Labour Court and these claims may be settled before the initiation of a labour claim if a settlement was reached between the employer and employee.  Please note that the Ministry of Labour and Social Development may be approached before a claim is initiated to settle such dispute.

As for the remedies available, the Bahraini Labour Law distinguishes between dismissal without a justifiable cause and unfair dismissal.  If an employee is dismissed on discriminatory grounds, it is considered unfair dismissal.  Compensation for each type of dismissal varies based on whether the employee’s contract term is fixed or indefinite.  If an employee’s contract term is indefinite and is dismissed without a justifiable cause, he/she shall be entitled to compensation by the equivalent of two days’ wages for each month of service and at no less than one month’s wages up to a maximum of 12 months’ wages.  On the other hand, if the employee’s contract term is fixed and is dismissed without a justifiable cause, he/she shall be entitled to compensation at the equivalent of the wages for the remaining period of the contract unless the parties mutually agree at a lesser compensation, provided that the agreed compensation shall not be less than three months’ wages or the remaining period of the contract, whichever is less. 

On top of the different compensations mentioned above, if an employee is unfairly dismissed, he/she shall be entitled to additional compensation equivalent to one-half of the above-mentioned compensations due, unless the contract provides for higher compensation.

3.5        Are there any specific rules or requirements in relation to whistleblowing/employees who raise concerns about corporate malpractice?

The Bahraini Labour Law does not clearly provide protection to whistleblowers.  However, under other legislation such as the Penal Code, whistleblowing is recognised as a mitigating factor.

3.6        Are employers required to publish information about their gender, ethnicity or disability pay gap, or salary or other diversity information?

No, the law in Bahrain does not require the employers to publish such information. 

4. Maternity and Family Leave Rights

4.1        How long does maternity leave last? Is a woman entitled to return to the same job after maternity leave?

A female employee shall be entitled to maternity leave on full pay for 60 days, which shall include the period before and after her confinement, provided that she produces a medical certificate attested by a government health centre or one of the clinics approved by the employer stating the expected date of her confinement.  As for returning to the same job, the law does not provide such requirement. 

4.2        What rights, including rights to pay and benefits, does a woman have during maternity leave?

During the maternity leave, the employee’s pay and benefits shall remain unaffected.  In addition, a female employee shall be entitled to obtain leave without pay to provide care for her child who is not more than six years of age for a maximum of six months in each case and for three times throughout the period of her service.

4.3        Do fathers have the right to take paternity leave?

Fathers are only entitled to one day of leave with full pay upon the birth of his child.

4.4        Are employees entitled to other types of parental leave or time off for caring responsibilities?

A female employee shall be entitled, after her maternity leave and until her child is six months of age, to two periods to breastfeed her newly born child, each of which shall not be less than one hour.  She is also entitled to two periods of care for 30 minutes each until her child reaches one year of age.  A female employee has the right to combine these two periods and such two additional periods shall be considered as part of the working hours without resulting in any reduction of her wage.  An employer shall fix the time of the aforementioned care period according to the female employee’s conditions and the interest of the business.

4.5        Are employees entitled to work flexibly or remotely, for example if they have responsibility for caring for dependants?

The Bahraini Labour Law does not provide for such flexibility; however, it may be agreed upon separately between the employer and employee.

5. Business Sales

5.1        On a business sale (either a share sale or asset transfer), do employees automatically transfer to the buyer?

Yes, employees will automatically transfer to the buyer.  Both the buyer and seller shall remain jointly liable to settle the employees’ entitlements.

5.2        What employee rights transfer on a business sale? How does a business sale affect collective agreements?

All employee rights will transfer on a business sale.  Furthermore, collective agreements shall remain binding on the buyer.

5.3        Are there any information and consultation rights on a business sale? How long does the process typically take and what are the sanctions for failing to inform and consult?

Employees are not entitled to be consulted before a business sale; however, the employer may do so voluntarily.  It is not possible to estimate a rough timeframe to conclude a business sale as it depends on the size of the entity and number of employees to be transferred.

5.4        Can employees be dismissed in connection with a business sale?

In general, a business sale shall not entitle an employer to dismiss employees freely.  However, employees may be dismissed on the grounds of reorganisation, downscaling of business and partial or total closure of the entity.  In such case, employees will be entitled to one-half of the compensation that they would be entitled to in the case of termination without a justifiable cause.

5.5        Are employers free to change terms and conditions of employment in connection with a business sale?

Any change can be achieved only by way of mutual agreement.  Employers are not free to make any amendments unilaterally, unless such power to unilaterally amend is derived from the employment contract terms.

6. Termination of Employment

6.1        Do employees have to be given notice of termination of their employment? How is the notice period determined?

Yes, an employer is obliged to serve a termination notice should it wish to dismiss an employee.  As per the Bahraini Labour Law, the notice period must not be less than 30 days.  However, the employers are bound to follow a longer notice period if it is stated in the employee’s contract.

6.2        What protection do employees have against dismissal? Do employers have to get consent from a third party before dismissing an employee?

Employees are considered dismissed upon the expiry of their termination notice period. 

As per the Bahraini Labour Law, upon termination, employees are entitled to the following:

1. Leave balance
   Article 58 of the Bahraini Labour Law stipulates that an employee is entitled to 30 days of annual leave. 
   The employee is entitled to receive payment in lieu of the accrued leave days. 
2. Travel tickets
   As per Article 27 of the Labour Market Regulatory Law, expatriates are entitled to a travel ticket back to their home country if they do not start working with another employer in Bahrain. 
3. End of service indemnity
   Expatriates who do not benefit from social insurance under the Social Insurance Law are entitled to an end of service indemnity.  Article 116 of the Bahraini Labour Law explains the calculation method by stating that: “[A] worker shall be entitled upon the termination of his employment to a leaving indemnity at the rate of half month’s wage for each of the first three years of employment and one month’s wage for each of the following years in service.  A worker shall be entitled to receive his leaving indemnity for fractions of the year in proportion to the period spent in the employer’s service.” 
   The calculation in the above-mentioned Article shall be based on the employee’s most recent wage, excluding all allowances except social allowance. 
   Please note in this respect that a Bahraini employee whose salary exceeds 4,000 Dinars is also entitled to leave indemnity in respect of the amount in excess of the 4,000 Dinars only, pursuant to Article 17 of the Social Insurance Law. 
4. End of service certificate
   Upon termination or during the course of employment, an employer is obliged to give an employee an end of service certificate pursuant to Article 13 of the Bahraini Labour Law, which stipulates as follows: “[A]n employer shall give to a worker, upon request and free of charge, a certificate confirming the date of employment, type of job, wage, other benefits received, experience, professional skills, date and reason for termination of the contract of employment.” 
5. Notice period
   Employees are entitled to be served notice in accordance with the terms of their contracts, subject to which the notice period should not be less than 30 days in advance.  If the employer fails to serve the notice in a timely manner, the employee is entitled to his/her wages for the notice period.

6.3        Do any categories of employee enjoy special protection against dismissal?

As per Article 110 of the Bahraini Labour Law, if an employer is forced to dismiss some employees due to reorganisation, downscaling of business, or partial closure, local Bahraini employees must be retained if it is possible to terminate a foreign employee who has the same qualification and experience as the local employee instead. 

6.4        When will an employer be entitled to dismiss for: 1) reasons related to the individual employee; or 2) business-related reasons? Are employees entitled to compensation on dismissal and if so, how is compensation calculated?

Employee-related reasons

An employer may terminate a contract of employment without notice or compensation in any of the following instances:

1. If the employee has assumed a false identity or submitted false certificates or testimonials. 
2. If the employee has committed a fault that caused serious material loss to the employer, provided that the employer shall report the matter to the competent authorities within two working days of its knowledge of the seriousness of the material loss. 
3. If the employee, despite a written warning, fails to comply with written instructions that are required to be observed for the safety of workers or the establishment, provided that such instructions are posted in a prominent place in the workplace. 
4. If the employee does not attend to the workplace, without legitimate cause, for more than 20 intermittent days or for more than 10 consecutive days in one year, provided that such dismissal shall be preceded by a warning in writing by the employer to the employee after an absence of 10 days in the former instance and an absence of five days in the latter instance. 
5. If the employee fails to perform his/her essential duties under the contract of employment. 
6. If the employee discloses, without written permission from the employer, secrets related to work. 
7. If the employee has been finally sentenced for a crime or misdemeanour involving dishonour, dishonesty or public morals. 
8. If the employee is found during the hours of work to be under the influence of alcohol or drugs, or if he/she has committed an immoral act at the place of work. 
9. If the employee assaults his/her employer or his/her responsible manager or commits a serious assault upon any of his/her supervisors of work during the course of employment or for reasons connected therewith. 
10. The employee’s failure to comply with the legally prescribed rules concerning the exercise of the right to strike. 
11. If the employee becomes unfit to do his/her work, subject to the contract due to a cause attributed thereto, such as cancelling his/her permit to practise his/her work or loss of the qualifications authorising him/her to carry out the mutually agreed work. 

If the employee has not committed any of the above-mentioned offences, upon dismissal the employee will be entitled to compensation that varies subject to the type of contract pursuant to Article 111 of the Bahraini Labour Law, which stipulates as follows:

“A. If an employer terminates an employment contract of indefinite period within the first 3 months from the effective date thereof, the worker shall not be entitled to any compensation unless the termination is an unfair dismissal […]

B. If an employer terminates an employment contract of an indefinite period without cause or for an unlawful cause three months after the commencement of employment, he shall compensate the worker by the equivalent of two days’ wages for each month of service and at no less than one month’s wages up to a maximum of twelve months’ wages.

C. If an employer terminates an employment contract of definite period without cause or with an unlawful cause, he shall compensate the worker at the equivalent of the wages for the remaining period of the contract unless the parties mutually agree at a lesser compensation, provided that the agreed compensation shall not be less than three months’ wages or the remaining period of the contract, whichever is less…”

Business-related reasons

Business-related reasons are mentioned under Article 110 of the Bahraini Labour Law, which states as follows: “An employer may terminate the contract of employment because of the total or partial closure of the establishment, scaling down of its business or replacement of the production system by another that may affect the size of the workforce, provided that the contract’s termination shall not take place except upon giving the Ministry concerning the reason for the termination 30 days before the date of giving the worker notice of termination.  In cases other than the total closure of the establishment, the contract of the Bahraini worker who has the same competence and experience as the foreign worker with whom he works in the establishment shall be given priority.

In case of termination of the contract for any of the reasons provided for in the preceding paragraph, the worker shall be entitled to receive a bonus equivalent to one half of the compensation referred to in Article (111) of this Law.”  

6.5        What claims can an employee bring if they are dismissed? What are the remedies for a successful claim and can employers settle claims?

An employee may seek legal redress on the grounds that he/she was unfairly dismissed or dismissed without a justifiable reason.  We have previously outlined compensation for unjustifiable dismissal in our answer to question 6.4.  In the case of unfair dismissal, which is dismissal based on gender, race, religion, etc., an employee will be entitled to additional compensation equivalent to one-half of the compensation due for unjustifiable dismissal. 

It is also common for employees to file claims upon the termination of their contracts to claim unpaid wages, notice period compensation, annual leave payments, travel tickets, end of service indemnities and end of service certificates.  The same have been listed in our answer to question 6.2.

6.6        Does an employer have any additional obligations if it is dismissing several employees at the same time?

If the dismissal was due to reorganisation, downscaling of business, or partial or total closure of the entity, the employer is obliged under Article 110 of the Bahraini Labour Law to notify the Ministry of Labour and Social Development of such dismissal.

6.7        How do employees enforce their rights in relation to mass dismissals and what are the consequences if an employer breaches its obligations?

In the case of mass dismissal, the employer and employees shall initially aim to settle the dispute amicably.  If no agreement is reached within 60 days, either the employer or employees may request the Ministry of Labour and Social Development to refer the dispute to the Collective Dispute Settlement Board (“CDSB”), whose formation shall be determined by the Minister.  If the CDSB does not resolve the dispute within 60 days, either the employer or employees may request the aforementioned Ministry to refer the dispute to an arbitral tribunal.  The arbitral tribunal shall then issue a binding and enforceable award.

7. Protecting Business Interests Following Termination

7.1        What types of restrictive covenants are recognised?

Non-competition restrictions are recognised.

7.2        When are restrictive covenants enforceable and for what period?

The non-competition restriction is only valid if:

1. The employee has reached the age of 18 at the time of concluding the contract. 
2. Restriction is limited as to the time for a period not exceeding one year after the termination of the employment contract and is limited in terms of place and type of work to the protection of the employer’s legitimate interests. 

An employer shall not invoke such agreement if the contract is terminated or if its renewal has been rejected without any justifiable action on the employee’s part.  The employer may not rely on such agreement if the employee has had a justifiable reason to terminate the contract of employment.

7.3        Do employees have to be provided with financial compensation in return for covenants?

In the case of breach of the non-competition restriction, the employer is entitled to compensation.

7.4        How are restrictive covenants enforced?

If an employee breaches the non-competition restriction, the employer will need to substantiate the damage it incurred and claim for compensation.

8. Data Protection and Employee Privacy

8.1        How do employee data protection rights affect the employment relationship? Can an employer transfer employee data freely to other countries?

As per the Bahraini Labour Law, employers shall maintain a file for each employee containing all particulars related thereto, especially: his/her name, age, CPR, marital status, residential address and nationality; his/her position or occupation; his/her experience and qualifications; the date of engagement for employment and wage, and any changes occurring thereto; leave he/she has taken and the penalties imposed on him/her; and the date of termination of service and the reasons therefor. 

The employer shall also maintain on such file the minutes of investigation and the report of his/her supervisors on his/her work performance, as determined in the basic regulations of the establishment, as well as any other documents related to the employee’s service. 

The employer shall also maintain the employee’s file for at least two years from the date of the termination of the work relationship. 

Such data may be considered personal data and, as a result, shall not be transferred freely to other countries except upon obtaining the employee’s explicit consent or if it is deemed necessary for the performance of the employment contract.

8.2        Are employers entitled to carry out pre-employment checks on prospective employees (such as criminal record checks)?

There is no legal obligation on employers to carry out pre-employment checks on prospective employees; however, employers customarily do so.

8.3        Are there any restrictions on how employers use AI in the employment relationship (such as during recruitment or for monitoring an employee’s performance or productivity)?

No.  However, using artificial intelligence (“AI”) in such areas shall be in compliance with the personal data protections laws. 

9. The Future

9.1        What are the most significant labour market developments on the horizon in the next 12 months?

In the next 12 months, one of the most significant labour market developments on the horizon is the increasing need for Bahrain and other countries to regulate the use of AI in the labour field.  As AI continues to advance rapidly and become more integrated into various industries, it is crucial for legislators, entities and employers to establish clear guidelines and policies to ensure its responsible and ethical use.

The adoption of AI in the workplaces has the potential to revolutionise the way businesses operate, leading to increased efficiency, productivity, and innovation.  However, it also raises important questions about job displacement, skills requirements, and the overall impact on the labour market.  To address these concerns, Bahrain as well as other jurisdictions will need to develop comprehensive frameworks that balance the benefits of AI with the protection of workers’ rights and the promotion of fair labour practices.

Frequently Asked Questions (FAQ)

1. What is the main source of employment law in Bahrain?

The main source of employment law in Bahrain is Legislative Decree No. 36 of 2012 promulgating the Bahraini Labour Law.

2. What types of employees are protected under Bahrain Labour Law?

The Bahraini Labour Law offers protection to all employees regardless of whether they are part-time, full-time, local or expatriate employees.

3. Are employment contracts required to be in writing in Bahrain?

Yes. Employment contracts must be in writing in Arabic and recorded in duplicate, with one copy retained by each party. If the contract is prepared in another language, it must be accompanied by an Arabic version.

4. Are trade unions recognised in Bahrain?

Yes. Trade unions are recognised under Legislative Decree No. 33 of 2003 promulgating the Law of Labour Unions.

5. Can employees participate in strikes in Bahrain?

Trade unions may organise industrial strikes subject to the conditions and procedures prescribed by law, including notice requirements and approval procedures.

6. Are employees protected against discrimination in Bahrain?

Yes. Employers are prohibited from discriminating between workers based on sex, ethnicity, language, religion or belief. The law also prohibits discrimination in wages based on gender.

7. What maternity leave rights are available in Bahrain?

A female employee is entitled to maternity leave on full pay for 60 days under the conditions specified by law.

8. Is paternity leave available in Bahrain?

Yes. Fathers are entitled to one day of leave with full pay upon the birth of a child.

9. What happens to employees when a business is sold in Bahrain?

Employees automatically transfer to the buyer. The buyer and seller remain jointly liable for employee entitlements, and collective agreements continue to bind the buyer.

10. What notice period is required for termination of employment in Bahrain?

The notice period must not be less than 30 days unless a longer period has been agreed between the parties.

11. What payments may be due upon termination of employment?

Depending on the circumstances, employees may be entitled to accrued leave payments, notice period compensation, travel tickets, end of service indemnity and an end of service certificate.

12. Are non-competition clauses enforceable in Bahrain?

Yes. Non-competition restrictions are recognised under Bahraini law provided that the statutory requirements relating to duration, place and type of work are satisfied.

13. Can employee data be transferred outside Bahrain?

According to the article, employee data may not be transferred freely to another country unless the employee gives explicit consent or the transfer is necessary for the performance of the employment contract.

14. How does the article address artificial intelligence in employment?

The article identifies the increasing use of artificial intelligence in the workplace as a significant future labour market development and notes the potential need for regulatory frameworks that balance technological advancement with workers' rights and fair labour practices.

Practice Area: Employment & Labour Law

Jurisdiction: Bahrain

Authors: Al Sayed Jaffer Mohamed, Mohamed Ali Shaban and Mohamed Altraif – Hassan Radhi & Associates.

ICLG - Bahrain - Employment & Labour Laws and Regulations 2026

About Hassan Radhi & Associates

Hassan Radhi & Associates is one of Bahrain's leading full-service law firms and the exclusive Lex Mundi member firm in Bahrain. Established in 1974, the Firm advises local, regional and international clients across corporate and commercial law, banking and finance, dispute resolution, arbitration, construction, employment, real estate, regulatory matters and other areas of Bahraini law.