Dismissal Compensation in Bahrain: Art. 111 and Redundancy

If your Bahrain employer ends an indefinite contract without a valid reason after your first 3 months, the Labour Law gives you compensation of 2 days' wage for each month of service, at least 1 month's wage and at most 12 months' wages (Art. 111(b)). If you are made redundant, you get a bonus of half that amount (Art. 110).

The claim has a short time limit: file within 30 days of the contract ending (Art. 135).

All rows use a monthly wage of BHD 600 and take a day's wage as a thirtieth of the monthly wage. Ask the Ministry of Labour how the day rate is worked out for your pay.

• First 3 months. No compensation, unless it is an unfair dismissal under Arts. 104 and 105, which gives one month's wages (Art. 111(a)).
• Indefinite contract after 3 months. 2 days' wages for each month of service, at least 1 month's wages and at most 12 (Art. 111(b)). Part of a month counts as a full month (Art. 111(f)).
• Fixed-term contract. Wages for the rest of the term, unless you and your employer agree a lower amount, which must be at least 3 months' wages or the rest of the term if that is shorter (Art. 111(c)).
• Unfair dismissal. An extra half of the compensation due (Art. 111(e)). For example, leaving without notice because of an assault or an immoral act by the employer is treated as unfair dismissal (Art. 105).
• Leaving over a breach. If the employer commits a material breach or fraud, ask in writing for it to be put right within 30 days, then you may end the contract with notice. That is treated as an unjustified dismissal if proven (Art. 106).

Art. 110 covers terminations because of closure, scaling down or a change to the production system. The employer must tell the Ministry 30 days before giving you notice, and you are entitled to a bonus of half the Art. 111 compensation.

On BHD 600 a month with 5 years of service, that is BHD 1,200, half of the BHD 2,400 for an unjustified dismissal.

• Notice. 30 days either side (Art. 99), in writing (Art. 100). If the notice is not given, the other side pays the wage for it. While under notice you get a day, or 8 hours, a week off to look for work.
• Final pay. When the employment ends, your wage and all amounts due are paid immediately (Art. 40).
• End of service. For most non-Bahraini workers (GCC nationals are covered separately), service from 1 March 2024 is paid by the Social Insurance Organisation (SIO). Service before that is paid by the employer under the Labour Law. Work it out with the Bahrain calculator and read the Bahrain end of service guide.
• Misconduct. Art. 107 lists cases where the employer may end the contract without notice or compensation. Ask the Ministry of Labour or the SIO how it affects your end of service money.

• After you have left the job: file a statement of claim with the Labour Case Administration Office at the Ministry of Justice (Arts. 120 to 134).
• Settlement first, if both agree: the Ministry of Labour's individual disputes settlement authority can try to settle it, only with the consent of both sides (Art. 119).
• While still employed: the Ministry of Labour complaint service is for workers still on the job with a valid work permit.
• Costs: workers pay no court costs, unless the claim is dismissed, and no fees for complaints (Art. 6).

Full steps: how to file a labour complaint in Bahrain. Plan the next weeks with the leaving plan.