Employer of Record in Bahrain

bahrain

Building a remote team?

Employ exceptional talent, anywhere, anytime!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Employer of Record in Bahrain

Skuad’s Bahrain Employer of Records (EOR) solutions will assist your business to expand into Bahrain without the need for a physical entity. Skuad’s unified and fully automated human resource (HR) platform allows you to establish your local team and take care of their salaries and perks. Skuad has a network of global experts spanning more than 150 countries. Our unified employment platform enables seamless payroll management, hiring and onboarding of talent and ensures compliance with tax and employment laws.  To learn more, book a demo with us.

Bahrain at a Glance

Population: 1,758,676 people (approximately; June 2021)

Currency: Bahraini dinar (BHD)

Capital city: Manama

Languages spoken: English and Arabic

Gross Domestic Product (GDP): USD 3.8574 billion (2019)

One platform to grow your global team

Hire and pay talent globally, the
hassle-free way

Talk to an Expert

Employment in Bahrain

Bahraini labor laws apply to both overseas individuals and national citizens. There are several differences between them, which need to be carefully studied and analyzed. You also need to be aware of the local traditions and rules and regulations of Bahrain to establish your company in Bahrain. 

This process might seem challenging, but taking the help of an EOR service can simplify it for you. Skuad’s local contacts are well informed and understand the implications of the Bahrain Employment Laws for both national and international citizens.

Entitlements Explanation
Statutory working hours The statutory working hours are eight hours a day and cannot exceed 48 hours each week. Employees work for five or six days, as determined by the employment contract.
Overtime Eligibility An employer can ask their employees to work overtime in case of certain circumstances, such as workplace emergencies.
Employees are entitled to an extra 25% of their hourly wage for every hour worked overtime during the day and 50% of their hourly wage during the night.
Paid public holidays The public holidays in Bahrain are as follows.
  • New Year's Day (January 1)
  • Labor Day(May 1 and 2)
  • Eid al-Fitr (May 13 to 15)
  • Eid al-Adha (July 19 to 22)
  • Islamic New Year (August 18)
  • Ashura (August 18 to 19)
  • The Prophet's Birthday (October 19)
  • Bahrain National Day (December 16 and 17)
Holiday pay All the employees have the right to claim full wages for annual leaves and public holidays.
They are entitled to annual leaves of 30 days after working in the company for more than a year. Muslim employees can also avail of a pilgrimage leave to travel to Mecca for 14 days once they’ve worked for at least five years in the organization.
Medical leave Employees working within the jurisdiction of Bahrain are generally entitled to 55 days of sick leave. A medical certificate should be provided. The breakdown of sick leaves is as follows.
  • Fifteen days off at full salary
  • Twenty days off at half salary
  • Twenty days without salary
Maternity leave Women employees in Bahrain have the right to claim up to 75 days of maternity leave, of which 60 days are paid and the other 15 days are unpaid. Women are also restricted from working for at least 40 days after giving birth.
Annual leave accrual entitlement Bahrain labor laws state that any employee who has worked in an organization for more than a year can claim 30 days of paid leave. Any employee who has been working for less than a year can claim two and a half days of leave per month.
Leave expiry All employees are generally supposed to use all their leaves within 12 months. If any leave is not utilized, the employer has to pay the employee compensation.
Leave cash out Annual accrued leaves can be cashed out at the end of every 12 months.
Accrued leave at termination Accrued leaves are to be compensated with a competent sum of money at the time of termination.
Employee protection and anti-discrimination rights According to Article 39 of the labor laws in Bahrain, discrimination among workers and in wages is prohibited irrespective of one’s sex, origin, religion, or political inclination.
Further, Article 192 condemns any employee who has committed sexual harassment to imprisonment for a year or a fine of BHD 100.
Confidentiality of personal information Law number 30 of the 2018 Data Protection Law secures the information of the employees working in the territory of Bahrain.

To learn more about Bahrain’s employment policies and ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today.

Contractors vs. Full-time Employees

Employment laws provide for employees to be hired on a short- or fixed-term basis, on a contract. Bahraini employees can also be hired full-time in the long term.

  • Full-time employees: These employees are hired on indefinite contracts. Their contracts do not expire. They get a fixed salary and employee benefits and often work on the same project for a considerable duration.
  • Contractors: Part-time workers who are already experts in their field of work are hired for a limited duration. Hiring such workers is more expensive due to their specialized knowledge.

It is important to have a clear understanding of the type of positions of work that will best suit your business structure. It’s advisable to employ contractors for shorter, niche projects and leave the important day-to-day tasks that demand regular supervision to the full-time employees.

Whether your company requires contractors or full-time employees, Skuad’s EOR solution for Bahrain can take care of all your hiring needs. To know more, book a demo with Skuad experts.

Hiring in Bahrain

According to the Bahrain labor laws, every employer has to write a detailed employment contract in the Arabic language. The contract should contain detailed information about payroll and termination prerequisites, profits, and other benefits. Two copies should be created and signed, one each for the employer and employee. 

Employers also have to register their employees in the Ministry of Labor and Social Affairs after hiring them in Bahrain and obtain the certificate of registration. Further, employees must be registered with the General Organization for Social Insurance (GOSI) and other benefits such as death or work-related injuries. 

It is mandatory to express monetary details in BHD. Hiring workers depends on the nature of the work and you’ll need to get them recorded with the pension authority as soon as onboarding is completed. 

Employers in Bahrain generally post job openings on employment websites to widen their reach. These include, 

Skuad can help you hire the best workers with the help of our local contacts. For ensuring that your hiring process is compliant with the essential laws of Bahrain, speak to Skuad experts today.

Probation & Termination 

Probation Period 

Article 21 of the labor law of Bahrain states, 

  • The maximum duration of the probation time in Bahrain can be up to three months. 
  • However, it can be increased up to six months depending on the occupation.
  • Details of the probation must be written in the employment contract. 
  • Both the employer and the employee can choose to cancel their contract at any point during the probation period by providing a one-day prior notice. 
  • An employer cannot hire the same employee on probation more than once.

Termination of Services

According to Bahraini labor laws, termination of the contract is feasible on the following conditions, among others.

  • Resignation 
  • Failure to increase results and performance within the first 60 days of the probation period
  • On the expiry of the contract
  • Dismissal of the contract for a valid reason
  • Death or severe injury
  • Retirement (at the age of 60) 

According to Article 13 of Bahraini law, an employer will have to provide the employee with an end-of-service certificate authenticating the employee’s presence at the organization. They are also entitled to indemnity depending on their period of service.

The notice period is usually 30 days. However, it can be longer than 30 days if specified in the employment contract. If the employer does not serve the notice on time, the employee is entitled to their wages for that period. 

To ensure your expansion endeavors adhere to the laws regarding probation and termination in Bahrain, talk to Skuad experts and book a demo today. 

EOR Solutions in Bahrain

An EOR service expedites the process of expansion of your business in Bahrain. You can hire Skuad to assist your business by ensuring the swift processing of employee payroll, contract agreements, tax processes, and work permits. Skuad can also present the perfect pool of employees required for your organization without hassle.

General Employer of Record Service Terms

Key Terms Explanation
Taxes that apply to invoices The standard value-added tax (VAT) rate that is levied on most of the domestic supplies is 5%. However, zero-rated supplies are not taxed.
Minimum Duration of Service There is no such minimum duration of a contract. It depends on the type of work.
Currency Accepted Bahraini dinar (BHD)
Required Details & Documents
  • For citizens: Important personal information, passport copy, and bank-related details.
  • For outsiders: Personal details, duties, and responsibilities within the organization, educational and technical qualifications, curriculum vitae (CV), passport copy, bank details, passport-size photos, medical reports, and police verification.

Outsourcing Employment through an Employer of Record 

Hiring employees from a new country is not an easy task. Some employers choose to set up an internal HR department to take care of payroll and compliance. However, this can be rather cumbersome. 

To make hiring and employee management easier, you can choose to partner with an EOR service such as Skuad. Skuad has an integrated, high-tech HR platform and tremendous industry experience. We can offer tailor-made EOR solutions for all your expansion needs. To avail yourself of our services, speak to Skuad experts today.

Types of Visas in Bahrain

Types of Visas Explanation
Domestic Visa Domestic visas are issued to domestic workers such as maids, drivers, and cooks. They are granted if the employer has a work permit valid for at least six months.
Tourist/Visit Visa A tourist or visit visa is given to individuals who wish to visit family and friends or travel in Bahrain. It can be granted for seven, 14, 30, or 90 days at a time.
Business Visa A business visa is similar to a tourist/visit visa, but the purpose of travel is work. This visa is granted for short-term business dealings as it is valid for 14 days. However, it can be extended for a further two weeks.
Employment/Work Visa Employment visas are issued by the Labor Market Regulatory Authority (LMRA). They are valid for two years and must be sponsored by the employer or a Bahraini national.

Talk to us and get more information and guidance related to types of visas and work visa requirements in Bahrain. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.

Work Permit

In Bahrain, all foreigners will need working visas and permits to legally work inside the country. The applications must be sent to the LMRA before the employee arrives in Bahrain. 

Skuad has regional contacts who are willing to sponsor global employees for work permits and visas. Skuad’s EOR solution in Bahrain manages all the requirements and takes care of all the employment-related details. Clients will also be able to check on their employee’s performance on Skuad’s unified, tech-enabled HR platform.

The following documents are required to get a work permit in Bahrain. 

  • A verified visa application form
  • A letter of employment from the company in Bahrain
  • A sponsorship letter
  • A copy of the passport 
  • A passport-size photo of the employee
  • Payment bill of BHD 100 to any of the recognized institutions
  • Cleared medical certificate from any authorized health center
  • A copy of the employment contract with the worker’s name, date of birth, and nationality details

Other important details to know about work permits in Bahrain are tabulated below.

To know more about work permits in Bahrain and how Skuad can secure them for you, speak to our experts today and kick-start your expansion. 

Payroll & Taxes in Bahrain

Things You Must Know to Set Up Payroll in Bahrain

In Bahrain, it is crucial to understand the rules to facilitate salary and taxation transactions. The first thing you must decide is whether you want to take help from an EOR service to manage payroll in Bahrain. For taxes, you must follow the Bahraini laws for income tax, withholding tax, sales tax, and social security costs. You can choose from two options. 

  1. You can find and establish a local team, that is, a capable HR department, to manage taxations and salaries in Bahrain.
  2. You take the help of an EOR service such as Skuad to help make the flow of things easier and ensure that your expansion happens as per the local laws.

Taxes in Bahrain

To manage payroll and taxes while expanding in Bahrain, it is prudent to partner with an EOR service. Skuad’s Bahrain EOR solution can take care of all HR-related tasks for you while ensuring compliance with the local laws, including those covering payroll and taxation. To learn more, get in touch with Skuad experts.

Incorporation: How to Set Up a Subsidiary in Bahrain

You need to know and understand the structure and the location of where you want to set up your subsidiary in Bahrain. There are three general forms of limited liability companies (LLCs) in Bahrain.

  • With Limited Liability (WLL) and Bahrain Shareholding Company (BRC), where the parent company has restrictions on the branch being set up 
  • Single Person Company (SPC), where the organization is owned by a single person 

In Bahrain, different areas have different laws, regulations, and cultural differences, so it is essential to keep these factors in mind before deciding on the location of the subsidiary. Employers are also required to have a minimum paid capital of BHD 2,600 before they can incorporate. 

Steps for Setting Up a Subsidiary in Bahrain

  • Getting an Electronic Key
    You have to register online at the official government site of Bahrain for an electronic key.
  • Application
    You will be able to register your company in Bahrain through the online gateway system more commonly known as SILIJAT once your application is passed.
  • License
    You will have to decide what type of license you want, depending on the nature of the business. You will also have to decide the structure of your business pursuit.
  • Verified Documents
    You will have to send your documents online for verification by the Ministry of Industry, Commerce, and Tourism and pay BHD 10 for the process. 
  • Notification and Operation
    Once your documents have been verified, you’ll be given notice and an e-certificate. You will be able to start operating your business in Bahrain and your company will be established once your application is passed.

If you want to open up your subsidiary in Bahrain, it is prudent to take the help of an EOR service to handle the intricacies of the procedure. Skuad’s EOR in Bahrain can help you streamline the process of incorporation of your company branch with the assistance of our global experts. Get in touch today to learn more.

Professional Employer Organization (PEO)

A professional employer organization (PEO) assists an enterprise to make the best decisions in HR to make its foundation more efficient and stronger. They can also run the salary process and tax payment and assist you with potential candidates for recruitment. 

The main difference between a PEO and an EOR service is that PEOs do not act as legal employers. They can only operate indirectly; therefore, you will be held liable for any administrative and legal issues. Further, With an EOR service, you need not register your company in the country. The same is not true for a PEO, which can only operate in a country where you already have an entity. 

Skuad provides EOR services to cater to all your expansion needs. Our Bahrain EOR solution is tailor-made to save you time and resources, and act in full compliance with the local laws. Book a demo here to learn more about Skuad’s Bahrain EOR solutions.

Conclusion: What Gives Skuad’s Bahrain Solutions an Edge?

It can be time-consuming and expensive to establish a physical entity in Bahrain. With Skuad, you can expedite your expansion plans. We will help minimize the complexity and cost of doing business in Bahrain.

 We can take care of all HR tasks for you, including recruitment, hiring, onboarding, payroll, taxation, probation, termination, visa,and work permits without any need to set up a subsidiary. All our operations are conducted on our high-tech, unified HR platform with the help of our highly skilled industry experts who ensure compliance with the local laws every step of the way.

Partner with Skaud experts today to advance your expansion endeavors in Bahrain. Book a demo with us to know more.

Building a remote team?

Employ exceptional talent, anywhere, anytime!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Onboard & pay your contractors for free.

Skuad makes building globally distributed teams, quick and hassle-free.

Request demo
start hiring