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Bahrain Legalities

Business isn't as easy in some countries as it is here in the UK. You need to be aware of the cultural and legal implications of your business operations in Bahrain, because, in some places, you could face heavy punishment for transgressing.

It is therefore important to acclimatise yourself with the law in Bahrain. There will be many legalities that you will have to adhere to, and you may even find that some laws you are familiar with here in the UK are no longer applicable. Likewise, you may find some new laws which strike you as strange or even oppressive.

Corporate Law

Corporate law in Bahrain is similar to that of western countries, in that businesses can be run as limited liability operations, private companies or other types of entity.

Labour Law

These laws provide the legislation governing and regulating the relationship between the employer and the employee.

Wages

No official provision declaring minimum wage in Bahrain is in place however, 120 BD is considered the unofficial minimum wage in all sectors.

Employee Entitlements

Employees are entitled to 21 days paid leave after one years' service. After five years, it increases to 28 days paid leave. Employees are allowed 45 days sick leave.

Working Hours

Most commercial organisations operate from Saturday-Thursday. Depending on the company's policy, the working hours in Bahrain are usually 40-48 hours a week and 8 hours per day. The working day hours are usually 8.30 or 9.00 until 5.30 or 6.00. In the month of Ramadan, the working day is reduced to six hours which legally should apply to all staff, however, many companies only allow it of their Muslim staff who fast during the daylight hours.

Employment

Contracts of employment are expected to be in written form.

If an employer has one or more employees, the employer must subscribe to the General Organisation for Social Insurance.

While you're running a business in Bahrain, you are required to carry identification around with you as it is common for labour officials to carry out spot checks on businesses to stop workers being employed illegally and to inspect passports in the possession of the employer.

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