After months of filibustering and internal negotiations over anticipated amendments to Bahrain's private sector labor, Bahrain's Upper House, the Shura Council finally reached an agreement approving a new private sector law that will award compensation to employees if their job contracts are terminated. The key article that allows sacked employees compensation from their employers was reinstated last week after previously being rejected by the Council, stating that it was a legal loophole that allotted too much financial responsibility to the employer. Now, employers will be held accountable for compensation packages of their sacked employees if the company completely or even partially fails, or enters a period of limited activity or production.
However, employees under open contracts are only able to demand three months of their salary, or the remaining salaries owed to them in timed contracts as compensation.
Many believe that this arrangement is "catastrophic," unfair and offers insufficient coverage to employees on open contracts, many of whom are the most vulnerable and would benefit most from legal safeguards to protect and award them for untimely termination.
The new law also remitted a previously rejected article offering widows compensation for days of mourning prescribed under Islamic Law. When the article was originally rejected a few weeks ago, the Shura Councilors agreed that the financial cost for the employer would be huge. Negotiations over the required 4 months and 10 days required in Islamic Shari'a Law revealed some disagreements amongst Council members who demanded the time be shortened to just 1 month. In the end, lobbyers in favor of religious tradition prevailed and the amendment was finalized.
The approved law will now be referred to Parliament before it is fully implemented.
Source: TradeNews Arabia
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