Bahrain MPs call for companies to submit financial report before layoffs

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Bahrain's lawmakers are set to discuss a requirement for companies to disclose financial reports to the Labour Ministry before initiating any employee layoffs. This amendment to Law No. (36) of 2012 concerning labour in the private sector has stirred up a storm of opinions among stakeholders.

The move is spearheaded by MPs Mohammed Fardan, Dr. Hisham Al Ashiry, Mohsen Al Asbool, and Jaleela Alawi. Currently, companies are not obligated to file financial reports before they downsize, close shop, or alter their production systems.

However, the proposed amendment seeks to flip the script by making it mandatory for companies to provide financial reports. MPs say this move would empower the Ministry to scrutinise a company's financial health and validate the reasons behind any workforce reductions. But that's not all.

The proposed law aims to hold employers accountable by requiring them to fully compensate employees if any discrepancies are uncovered in their financial reports. Gone would be the days of partial compensation; instead, companies would be compelled to meet their financial obligations head-on.

Yet, not everyone is on board with this proposal. The Ministry of Labour and the Bahrain Chamber of Commerce and Industry (BCCI) are raising red flags, expressing concerns about the potential fallout for businesses and the chilling effect it could have on foreign investment.

In contrast, the General Federation of Bahrain Trade Unions (GFBTU) is championing the cause, emphasising the proposal's pivotal role in protecting workers' rights, ensuring fair compensation, and putting an end to any attempts by companies to shirk their financial responsibilities.