Want to hire employees in Bahrain? An Employer of Record (EOR) solution can make things easy. With EOR services, you can follow the rules, pay employees, and give them the right benefits, even if your company doesn't have an office in Bahrain.

If you work with Gloroots' Bahrain EOR, you can hire people faster. It doesn't matter if your company is big or small, or if you want to grow quickly or slowly. Gloroots' EOR services can help you with everything so that you can focus on your main work. This way, you can find talented people in Bahrain and explore business opportunities without worrying too much about complicated rules.

Instead of setting up a new entity in Bahrain, which requires significant time and investment, you can partner with a Bahrain PEO/EOR to hire quickly and compliantly. Bahrain’s labor laws have unique nuances, such as the Bahrainization policy, which mandates that a certain percentage of your workforce be Bahraini nationals. While regional policies like this may exist at state or provincial levels, a nationwide requirement is rare.

You’ll also need to navigate laws around working hours, annual leave, maternity leave, and collective bargaining agreements, all of which may differ from what you're used to. Failing to comply can result in penalties.

By working with a Bahrain EOR, you shift the responsibility of creating compliant employment contracts while minimizing your risks around non-compliance and termination. The EOR acts as the legal employer, allowing you to focus on building and growing your team with confidence.

You can use Gloroots’s EOR solution at a fixed price, with no hidden fees. Plus, the price won't change even if your employees make more money or get bonuses. This means you can plan salary budgets without surprises.

When you work with a Bahrain EOR company like Gloroots, everything is clear and simple. Our experts will help you understand the cost, so you know you're getting the best deal.

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Key Metrics For Foreign Employers

Refer to the figures below from the Global Talent Competitiveness Report and reflect on hiring from Bahrain.

Source: The Global Talent Competitiveness Index 2023

Misclassifying employees as independent contractors in Bahrain can lead to fines, back payment of wages, tax liabilities, and legal disputes. Employers must comply with Bahrain’s labor laws to avoid penalties and reputational risks.

Learn More: Employee Misclassification Penalties: Know the Risks

Law No. 36 of 2012, also known as the Labor Law, is the main rule for how work is managed in Bahrain's private companies. This law makes sure employees are treated well and get basic rights like time off, extra pay for overtime, health care, and fair treatment when their job ends.

If you team up with Gloroots, an employer of record in Bahrain, they can help you understand all the rules that manage work in the country.

Employment Contract

Employers need to make employment agreements in both Arabic and a language that the company and the employee can understand. They should make two copies of the contract, one for the employer and one for the employee.

According to the country's laws, the contract should include information like:

• Where the employee will work
• What the employee will do
• How many hours the employee will work
• Days off and other times the employee can be away from work
• How much the employee will be paid
• When the employee will be paid
• Extra money and other payments
• How the job can end

Employers must show the salary and other good things in Arabic, using only the Bahraini dinar money.

Working Hours

Employers cannot ask employees to work for more than 48 hours. Do note that during Ramadan, working hours become shorter, about six hours. This is supposed to apply to everyone by law, but sometimes only Muslims who fast during the day get these shorter hours.

Muslims take a break from work on Friday. But for some companies that function five days a week, they might give a day off on Thursday or Saturday. Many international companies like to take Saturday off, so they have the same days as most of the world. Some other companies prefer Thursday off because the school 'weekend' is on Thursday and Friday.

People are not allowed to work for more than 11 hours in one day. This includes the time they work and the breaks they take.

Private companies can choose if they want to give time off on public holidays. If people work on these holidays, they can either get another day off later or get extra money, 150% more, on top of their normal pay.

If a public holiday is on a weekend (Friday or Saturday), the boss has to give people another day off instead.

Overtime

Workers shouldn't work more than two extra hours a day. If they do, they should get paid their regular wage plus at least 25% more for each extra hour during the day and 50% more for extra hours at night. This extra pay for overtime can't be part of the yearly salary in the work agreement.

Senior managers don't get extra pay for working overtime.

Minimum Wage

Bahrain doesn't have a set minimum wage.

Maternity Leave and Paternity Leave

When a woman is pregnant, she gets 75 days off for maternity leave. For the first 60 days, she gets paid her regular wage, but the last 15 days are without pay.

After coming back to work, the woman can have two extra hours each day for breastfeeding until the baby turns six months old. Then, she also has two breaks for breastfeeding, each lasting at least 1 hour.

Annual leave

Workers who have worked for a year or more can take a paid break from work, known as annual leave. This break should be at least 30 working days, and they should be paid their usual salary during this time. They get this leave at a rate of 2.5 days for each month they've worked.

As per the labor law, employees can't lose this right to annual leave. If they haven't used up their leave, they can either use it in the next year or get paid for it every two years or when they leave the job.

Sick Leave

Employees don't get official sick leave until they've worked for 3 months. They also need to show a note from a doctor to avail sick leaves.

After those first 3 months, employees can avail sick leaves for another 55 days every year, and are paid on the following basis:

• First 15 days - Whole salary
• Next 20 days - Half of their salary
• Last 20 days - No pay

They can keep this sick leave pay for up to 240 days.

Discover more abput How to Find & Hire Remote Employees

Income tax

No tax on personal income.

Other Taxes and Social Security contribution:

Employer Payroll Contributions:

Employee Payroll Contributions:

Termination Process

To end an employee's job, the employer needs to have good reasons and tell the employee ahead of time. There are several situations when this can happen:

• During a trial period
• When a fixed-time contract is done
• If the employer has a good reason and gives enough notice
• If the employee doesn't improve after having a chance (usually 60 days)
• If the employee quits, can't work, passes away, is no longer needed, or reaches retirement age (usually 60)
•  If there are reasons listed in Article 107 of the Labor Law
• If a company has to close, they must let the Ministry of Labor and Social Development know. Local workers might get more protection from losing their job in such cases, and they might get more money from the government.

Notice Period

Either the employer or the employee can end the contract, but they have to tell the other person at least 30 days before. The contract still applies during this time, and both sides have to do what they agreed to. If there's no notice, the person who ends the contract has to pay money instead. During the trial period, only one week's notice is needed.

Severance Pay

Unless the termination is done according to Article 107 of the Labor Law, employees might have rights to get paid until their last working day, notice (or money instead of notice), money for unused annual leave, a payment when their job ends called an end-of-service gratuity payment (EOSG), and the employer might have to pay them back for any work-related expenses they didn't get paid for.

If the employer ends the job, the employee can get an EOSG payment based on how long they worked:

If someone worked part of a year, the payment is adjusted to match that time.

Probation Periods

Many companies have a three-month trial period, but for some jobs, it can be extended to six months. During this time, one week's notice is needed.

Hiring in Bahrain requires compliance with employment laws, payroll regulations, data protection rules, and fair labor practices. Navigating these complexities can make the hiring process challenging.

With Gloroots, you can simplify global hiring. Our end-to-end solutions ensure seamless talent acquisition, payroll management, and legal compliance. From drafting employment agreements to managing timely payments and benefits, our experts handle every detail, allowing you to focus on selecting the best candidates.

Trust Gloroots to make hiring in Bahrain efficient, compliant, and hassle-free.

Bahrain offers a dynamic business environment with a skilled workforce and strong economic growth. Expanding your team here presents exciting opportunities, but navigating local labor laws, payroll, and compliance can be complex. With Gloroots as your Employer of Record (EOR), you can hire quickly, compliantly, and with ease. We handle payroll, benefits, and legal requirements so you can focus on building a strong, successful team.

Start hiring in Bahrain with confidence. Contact us today.