Leaving a job in Bahrain: what you're owed and by when

Your leaving indemnity

• Half a month's pay for each of your first 3 years.
• A month's pay for each year after that.
• Part years count in proportion (Art. 116).

Article 47 bases it on your latest basic wage plus any social allowance. If your contract pays other allowances, ask the Ministry of Labour whether they count.

Article 116 has no reduction for resigning. It is for workers not subject to the Social Insurance Law. If you are Bahraini, ask SIO what applies to you.

Service from 1 March 2024: paid by SIO

For expats in the private sector, the Social Insurance Organisation (SIO) pays the gratuity for service from 1 March 2024 (Decision 109 of 2023). Your employer pays SIO each month instead of paying you at the end.

Your employer pays 4.2% of your wage a month for your first 3 years, then 8.4%. If you had already passed 3 years when the scheme started, 8.4% from the start.

SIO pays one lump sum. It is half a month's wage a year for the first 3 years, then a month a year. It uses basic pay plus any social allowance, and cannot be more than the contributions paid for you.

Your service before 1 March 2024 is still paid by your employer under the Labour Law. Moving to a new employer keeps what you have built up with SIO. GCC nationals under the joint Gulf insurance rules are outside the scheme.

If you are dismissed for misconduct

Article 107 lets your employer end the contract without notice or compensation in the cases it lists. Examples are an assault, or being drunk at work.

The article does not say whether you lose your leaving indemnity. Ask the Ministry of Labour before you accept that it is gone.

Next: Your leaving plan

Notice and unused leave

Either side gives 30 days' notice to end an open-ended contract (Art. 99). It must be in writing, handed over against a signature or sent by registered post.

When you resign, your employer can let you off all or part of your notice (Art. 103).

Leaving without notice means compensation only if you also left at a bad time or caused harm. A court decides that (Art. 112).

During probation, either side can end the contract with 1 day's notice (Art. 21).

Ask the Ministry of Labour how your unused annual leave is paid out.

Final pay

Your employer must pay your wages and everything you are owed straight away when the job ends (Art. 40). If you left of your own accord, it has up to 7 days from the day you left.

SIO pays its part, for service from 1 March 2024. Its FAQ says it pays within 5 working days of your application. Work out your indemnity first, so you can check what arrives.

Raise any pay problem before your last day if you can. The Ministry's complaint service only takes workers still in the job.

Next: Was my final pay late?

Unemployment compensation

Bahrain's unemployment insurance covers private-sector workers, expats included (Unemployment insurance law, Art. 2).

Register at the Ministry of Labour within 30 days of the job ending, and payment runs from day 8 (Art. 13). The outer limit is 3 months.

It pays 60% of your average wage over the last 12 months, for up to 9 months. The monthly amount is BD 200 to BD 1,000, or your average wage if that is under BD 200.

A first claim needs 12 months in a row of insured work. Resigning, or a disciplinary dismissal, rules it out.

As an expat you must stay lawfully resident while you look for work. It ends if you leave Bahrain for good. You can receive it on top of your end of service pay.

Next: How do I register for unemployment benefit in Bahrain?

Your visa

After your work permit is cancelled, you have 30 days to leave Bahrain or transfer to a new employer. An employer can renew that grace period once, for another 30 days, at the NPRA.

If your employer applies to cancel your permit and send you home, leave before the work permit's expiry date in the system (LMRA).

To claim unemployment compensation, you must stay lawfully resident.

If you are not paid

While you still work there, file on the Ministry of Labour complaint service. See all six countries side by side.

1. While you still work there, use the Ministry of Labour's complaint service. It is free.
2. After you leave, file a statement of claim with the Labour Case Administration Office at the Ministry of Justice (Art. 120).
3. A judge handles the case for up to 2 months, which can be extended by 2 more. The High Civil Court then rules within 30 days.

A termination compensation claim must be filed within 30 days. Other claims under your contract are not heard after 1 year from its end (Art. 136).

Workers pay no court costs unless the claim is dismissed (Art. 6).

If you and your employer both agree, the Ministry's settlement body can try to settle first. A signed settlement can be enforced (Art. 119).

The Ministry of Labour hotline is 80008001.

Next: Complaint deadline checker