The Daily Tribune, 6 January 2025: Changes to Bahrain’s labour laws could pose challenges for small and medium-sized businesses, as a local MP has cautioned, urging the government to enhance support for traders amid increasing economic pressures.

The amendments to Bahrain Decree-Law No. 12/2024, which update Article 40 of Bahrain Law No. 19/2006 regulating the labour market, come at a time when businesses are facing reduced purchasing power and cash flow issues.

The MP has argued that the current economic climate necessitates more flexibility in enforcing penalties on traders, particularly as some delays in meeting financial obligations are due to auditing firms prioritising larger companies.

He has emphasised that limited liability businesses need adequate time to submit their accounts and that it is unjust to penalise them for delays often caused by auditors focusing on major players.

The MP has highlighted the importance of simplifying processes for traders to ensure fair market competition and provide consumers with more affordable options.

He has also welcomed the amendments aimed at reducing legal disputes against small businesses, advocating for these enterprises to have the opportunity to adjust their operations and remain viable.

The proposed changes could support micro-businesses and encourage more Bahrainis to start their own ventures.

He has called for additional measures to bolster these efforts and ensure their success.

Statistics from the Labour Market Regulatory Authority (LMRA) have revealed numerous cases of foreign workers operating without permits and incidents of labour being employed without proper authorisation or breaching permit terms.

These figures highlight the need for tighter oversight while protecting legitimate businesses.

The MP has praised Tamkeen’s efforts in subsidising Bahraini wages in the private sector, describing these programs as crucial for making Bahrainis the preferred choice for employers.

He urged further investment in such schemes to attract more job seekers and called for improved cooperation between government bodies to address labour violations efficiently without overburdening small firms.

The recent amendments, highlight the necessity for a business-friendly environment that balances the rights of all parties.

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