All you need to know about hiring in Bahrain

Last Updated on March 30, 2024 by Ali Hamza

Bahrain is a prime location for the headquarters of multinational companies because of its favorable business climate. Because of its relatively low tax rates, rules that allow you to maintain full control over your firm, and easy access to the wealthy Gulf market, your company has the potential to expand while simultaneously increasing its profits.

In order to begin the process of employing employees in Bahrain with Bahrain recruitment agencies, you will first need to familiarise yourself with the country’s labor laws, tax code, and the procedures for registering a firm there.

Here’s in detail about hiring:-

  • Agreements that can be collapsed:-

Unlike in several other countries, employment in Bahrain is not “at will,” meaning that contracts must be in place between employers and employees and that companies can only fire workers in limited conditions.

The Bahrain recruitment agencies tell that businesses in Bahrain are required by law to provide legally binding contracts to all of their employees. These legally binding contracts are required to be written in the native language of the employees and must detail their responsibilities, pay, benefits, and how to formally end their employment. In addition to keeping one copy for your records, you should also provide the employee with a copy of the contract they have signed.

The standard probationary period In Bahrain is three months. If an employer intends to terminate an employee beyond the initial three months, they must do so in accordance with the terms of the fixed-term contract, which typically entails payment of two days’ pay for each month worked. The severance package must be worth at least one month’s salary and no more than 12 months’ salary.

  • Wages and tax payments:-

When compared to other countries, Bahrain does not tax its workers’ wages. Staff members are not restricted from keeping any portion of their gross pay.

Contributions are not mandatory but are paid by both employees and employers in Bahrain. It is customary for local workers to contribute 7% of their salaries to a social security fund, while ex-pats pay only 1%. Everyone in the workforce is expected to contribute 1 percent of their salary to the state’s unemployment insurance fund. In addition, businesses are obligated to pay 13% of local employees’ salaries and 3% of expats’ earnings into the country’s social security system.

  • Payment and Working Time:-

In Bahrain, an average work week consists of 40 to 48 hours (or eight hours per day). Typically, Saturday and Sunday make up a weekend. In some situations, employees may work overtime in exchange for a 125 percent premium for daylight hours and a 150 percent premium for nocturnal hours.

New Year’s Day, Labor Day, Eid al-Fitr, Hijri New Year, and the birthday of the Prophet Muhammad are just a few of the nine mandated public holidays that must be observed with full pay in Bahrain. Workers in Bahrain should be entitled to 30 days of paid vacation after working for the same employer for a year. Work experience of less than a year does not affect the pace of vacation accrual, which remains constant at 2.5 days per month for all employees.

Workers in Bahrain should be able to take three days off for their nuptials. If an employee has been with the same employer for at least five years, they are eligible to take up to 14 days off work to do the Hajj.

  • Jobs and the labor force:-

Workforce members looking for work in Bahrain may face competition in the local labor market. As competition for available positions increases during periods of low unemployment, we see abrupt spikes in unemployment. When these events occur, businesses can anticipate a large influx of applications.

Expats make up a sizable share of Bahrain’s labor, particularly in the business sector. The Labour Market Regulatory Authority of Bahrain estimates that only 30% of workers in Bahrain are actually from Bahrain. It’s possible that these figures will change as a result of the policies now in place in Bahrain that aims to increase the number of nationals employed.

  • Speech:-

When it comes time for your organization to begin recruiting and hiring staff in Bahrain, having a working knowledge of the local languages can be extremely helpful.

Arabic is recognized throughout Bahrain as the language of official use. A significant portion of the population of Bahrain is a native speaker of the variant of Arabic referred to as Bahraini Arabic. Schools in Bahrain are required to teach English as a second language to their students because of its pervasiveness in the working world.

It is typical for workers who are not natives of Bahrain to speak languages other than Arabic. Included in this group of frequently spoken languages are Urdu and Farsi, which are respectively the predominant languages spoken in Iran and Pakistan.

How to Get a Job in Bahrain and Its Steps?

When completing a hiring process, all firms are required to adhere to a stringent process in order to screen candidates thoroughly and employ those who are the best fit for the available roles. Before beginning the process of applicant recruitment, they are required to determine their hiring requirements, publish advertisements, conduct interviews, and complete a pre-employment background check. 

The steps involved in the hiring process of Bahrain recruitment agencies are as follows:-

Step 1. Determine the requirements for new hires:-

It is necessary for businesses to precisely define the credentials and levels of experience required for various employment jobs while recruiting with Bahrain recruitment agencies.

Step 2. Put up ads for available positions:-

Employers can attract applicants by posting advertisements on major job portals detailing the available positions as well as the expected qualifications for those positions. They may also choose to promote job openings internally for referrals, in which case they may encourage current employees to submit applications.

Step 3. Vet potential employees:-

Applying a consistent and fair methodology to each application and CV will help you find the best possible applicants to advance to the next stage of the hiring process in Bahrain recruitment agencies.

Schedule interviews Schedule interviews with the applicants you’ve narrowed your search down to. Video interviews are a viable option for international candidates. Typically, recruiters will use a battery of tests to further validate a candidate’s skills.

Step 4. It’s a good idea to examine references:-

The interview phase of the hiring process allows businesses to identify a pool of qualified candidates from which to select new staff members. Screen applicants thoroughly to weed out those who have provided fake information or who have poor credit, criminal records, or both. On the other hand, pre-employment screenings are not mandated by law and are therefore optional for employers.

Step 5. Just make a call:-

The last part of the hiring procedure in Bahrain recruiting agencies includes evaluating candidates according to the criteria established during the process.

Step 6. Enrolling:-

After the final decision has been made, companies are able to provide their employee’s assistance with the enrolling process. The process of enrollment of new employees with Bahrain recruitment agencies does not compel any specific criteria. To simplify the process, you can either get your HR staff involved or hire an outside EOR service. Both options are available to you.

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Kate Johnson is a content writer, who has worked for various websites. She is also a college graduate who has a B.A in Journalism.

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