Labor’s Laws Lost
By Alex Malouf • Aug 4th, 2009For one recruitment expert based in Bahrain, the reforms may not make much difference in certain sectors or at the top end of the market. “People have always moved freely between banking roles in Bahrain,” says Rory Adamson, director of Bahrain-based executive search firm Azrek.
“For other industries in the private sector, this move should make a difference, but banks have always operated this policy,” he says.
The question many are now posing is what will replace the existing sponsorship system, which will lapse in August. Initially, the Labour Market Regulatory Authority - also headed up by al-Alawai - will review workers’ requests to change jobs. However, longer term, one option the Ministry of Labour is considering is the possibility of the government sponsoring foreign workers.
Nevertheless, employees are a long way from living in a utopian society. Following demands from the Bahrain Chamber of Commerce and Industry, an employer will be able to terminate a member of staff’s contract and deport him or her with a month’s notice.
The Bahraini government is also considering a cap on the number of foreigners who enter the country. A decision on the proposed cap is expected by the end of the year. This is because the top priorities for Bahrain’s authorities are nationals and employment.
The Minister of Labour rebuffed accusations that the reform of Bahrain’s sponsorship system was forced on the country because of pressure from foreign governments.
Instead, he argued it’s all about ensuring Bahrainis are in work and earning a decent wage. This will not, however, lead to the introduction of a minimum wage.
“We don’t want a minimum wage because our businesses, industries and services are linked to the GCC economy. Unless a minimum wage is introduced to the whole region it would be a huge disadvantage to our companies.

