To follow-up on a recent post presented in this blog last week on new methods the Bahraini Government is pursuing to address rising unemployment of its national population, the Labor Market Regulatory Authority (LMRA) has received backlash from Parliament demanding the suspension of monthly employment fees, according to the TradeNews Arabiaa New Source. To briefly elaborate, the LMRA recently instituted monthly employment fees totally 10 Bahrain Dinars (26 USD) for all expatriate employees to be paid by their employer. Some members of Parliament have encouraged a temporary suspension to this system, arguing that the "crippling fees" have led to the bankruptcy of several small and medium size business since the law's inception in July 2008, according to reports. The urgent proposal has been submitted to Bahrain's upper house (Shura Council) by a cross-section of MP's despite the objection of the Minsiter of State of Parliament and Shura Council Affairs, who commented that a suspension would negatively affect other schemes being carried out by the LMRA.The submission of the proposal follows two separate demonstrations this month by businessmen in front of Bahrain's National Assembly, as well as their submission of a formal letter to His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa.
MP Sheikh Ali Slaman noted that small and medium-sized business owners have become victims of the improper implementation of the fee system, underscoring that the purpose of the fees is to make Bahraini citizens more attractive for employment in businesses that are already dominated by expatriate workers.
The temporary suspension would provide one year for the LMRA to properly reassess the law and assemble economic charts providing data outlining the specific businesses that should be obliged to pay employment fees.
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