Gulf | Bahrain
New Bahrain labour law stirs hornet's nest
Bahrain's move to become the first Gulf state to scrap the controversial sponsorship system for expatriates, likely to be hailed by rights activists, has sparked concerns among the business community and the federation of trade unions.
- By Habib Toumi, Bureau Chief
- Published: 23:35 May 5, 2009
- Image Credit: AP
- Construction workers at Hamad Town in Bahrain, where a decision to scrap the controversial sponsorship system for expatriates has sparked concerns among the business community.
Manama: Bahrain's move to become the first Gulf state to scrap the controversial sponsorship system for expatriates, likely to be hailed by rights activists, has sparked concerns among the business community and the federation of trade unions.
Labour Minister Majeed Al Allawi on Monday said Bahrain would implement a new labour law on August 1 that allows foreign workers to switch jobs without their existing employer's consent. "This is the end of the sponsorship system, which does not differ much from slavery," the minister said.
The new law, a major demand by human rights activists, allows foreign workers to move to new jobs simply by informing their existing employers of their intention to end the contract. The notice should be made through registered mail and according to the timeframe stipulated in the employment contract, but must not exceed three months.
"The new employer will then register the worker with the labour authorities, but he or she will have to produce the end of contract notice sent to the former employer," Al Allawi said.
According to the minister, the new law, applicable to both the public and private sectors, guarantees the rights of the employers and employees.
"The law definitely improves the working conditions in Bahrain, will help increase salaries and wages and will eliminate the infamous free visa practice," said Al Allawi, a former opposition figure who was given the labour portfolio in 2002. "The application of this law will also boost the chances of Bahrainis getting jobs since employers will no longer be able to force expatriates to stay on and will put an end to the practice by some people who bring in workers and dump them in the market in return for monthly fees."
However, an official of the Bahrain Chamber of Commerce and Industry (BCCI) official said they had some concerns about the new law.
"We do not object to the principles of the law since nobody wants to enslave foreign workers. However, we want specific criteria and conditions that protect the business community from the expected damages," Adel Al Masqati, BCCI vice-chairman, said. "We demand, for example, that the employee does not switch jobs until after one or two years with the employer who brought him into the country and helped train him," he said.
The BCCI also demanded that the employee not be allowed to move to a competitor. "There is a serious risk of the employee divulging sensitive information about the first company to the new employer," Al Masqati said.
Salman Al Mahfoodh, the head of the Bahrain Federation of Trade Unions, said that the new law could result in small and medium enterprises losing their workers who would be lured by better perks offered by larger companies.
"We need to look carefully at how the application of the law affects the local market before we can make a final judgement on its merits," he said. "We are not in principle against it, but we do have some concerns."
The new law allowing job switches will have positive effects on the Bahraini unemployed, the labour minister said. "I am confident that there will be positive effects on Bahraini jobseekers. The problem in Bahrain is not the non-availability of jobs and in fact, there is no unemployment as traditionally defined. The real issue is the low wages, and as long as we have the sponsorship system, wages and salaries will remain low and Bahrainis will not have increases in their wages," he said.
The labour minister insisted that people should not hurry to issue judgements on the significance and merits of the law.
"I am confident that the working environment will greatly benefit from the new law. People tend to fear the unknown and new developments. I am sure that Bahrain will be now ranked among the advanced countries in dealing with foreign workers," he said.
"We had consultations, meetings and seminars with representatives of the chamber. Some of their suggestions and amendments were accepted, and others were rejected. For instance, the three-month notice by an employee before switching jobs was suggested by the Chamber," he said.
Expatriates in Bahrain yesterday warmly welcomed the decision to scrap the sponsorship system, saying that it would ease pressure on them. "I am so pleased with the new law because it means that I am no longer held like a helpless captive who has problems controlling his destiny," Lateef Yousuf said. "Handing my passport to the boss and not knowing what will happen to me is really scary. Now, I feel better because if I am not happy with my treatment, I will simply move to another job," said the tea boy at a governmental department.
Lateef, like thousands of Indian and other expatriate workers, had a contract with a company that allowed him to earn some money. But it also meant that, according to the sponsorship system, his employer could sack or deport him at any time without giving him the chance to seek a job elsewhere.
The end of the sponsorship was equally welcomed by foreigners working in the public sector. "I could never understand why the ministry took away our passports and kept them, even though we are skilled employees and we have valid contracts. We could not either understand why the ministry fully controlled when we could take a break or leave or whether we could take a new job with a new employer," said Ali Zamni, a teacher.
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