Employment in Bahrain is regulated by the provisions of Law No. 36 of 2012. The Bahrain Labour Market Regulatory Authority (LMRA) promotes an efficient employment system that protects the rights of workers, while also ensuring flexibility for businesses to meet the needs of our economic vision 2030. The probation period can be described as a risk-free trial period where the employer is allowed to test the capabilities of an employee to check if the employee is fit for permanent employment.

The importance of the probation period regulations in Bahrain cannot be ignored, especially in a working environment that is also made up of foreign and national employees and employers who may not be familiar enough with the regulations. Having a good understanding of the Bahrain Labour Law is very important for HR professionals.

Definition of a Probation Period in Bahrain

In Bahrain, a probation period is defined and strictly regulated. It is a full period of employment with legal rights and responsibilities. The period must be mentioned in the employment contract, and the conditions of the probation must be defined. Under Article 21 of Law No. 36 of 2012, employers may conditionally hire an employee to complete a probation period. The employment relationship continues during the trial period; the employee is fully employed with legal rights and responsibilities.

Probation can only be applied if the contract states that the employee is on probation. If the contract does not state this, then the employee is automatically considered a full staff member from the first day. Additionally, the law protects employees by prohibiting employers from putting the same worker on probation twice.

Lengths of Probationary Periods in Bahrain

When it comes to the length of the probation period, the main rule is that probation cannot last too long. For most jobs, the maximum duration of probation is three months, including administrative and retail roles. During this period, the employer must decide whether the employee is suitable or not.

To enable more thorough evaluation of an employee’s suitability, the law also provides for a probation period of up to six months for highly qualified jobs, such as scientific, technical and executive management roles. The six-month maximum duration does not apply automatically, however. It is a specific limit and must be expressly stipulated in the contract for the special cases set out by law.

An employer who has concluded a three-month probation clause is therefore not entitled, in application of this clause, to set a six-month probation period. Conversely, a six-month period is unlawful where the job is not among those eligible for a longer probation period. In the latter case, the employee is deemed a permanent employee at the end of the third month.

Permanent or indefinite contracts

For workers hired on permanent contracts, passing probation is the most important factor for job security. At the end of three or six months (depending on the contract), if an employee has not been let go, the trial period automatically becomes a full, open-ended contract. Crucially, the calculation of length of service (used to calculate seniority-based benefits) is taken from the first day of employment, not the day probation ended.

For Bahraini nationals, passing probation has even more implications. It is often the first step towards longer-term financial assistance from Tamkeen (the Labour Fund). Tamkeen can offer wage subsidies for several years after an employer has demonstrated that they are a good fit for the job. The company may be eligible for subsidies covering 70% of the salary in year one, and then 50% and 30% for subsequent years. The successful completion of the probation period is a sign that the position is sustainable and helps to secure this state funding.

Fixed-term or definite contracts

Probation is a financial protection in fixed-term contracts. The contract is very common for expats. Terminating it early requires the employer to pay the worker all the money for the remaining months. The probation clause gives the employer a “safe window” of the first 3 months to fire for unsuitability without that penalty.

After that, the employer is usually locked into the term, and early cancellation is much more costly. Probation completion secures the expat’s income and residence permit for the term. The high cost of long-term hiring would be too risky without the trial period.

Legal Considerations for Probation Periods in Bahrain

This probation clause must be part of the contract. The clause may not be agreed verbally, since a verbal agreement is not legally binding. However, it may be terminated at any time during the probation period, as long as the employer does not act arbitrarily or discriminatorily in doing so. For example, in accordance with Article 33, female workers may not be terminated because of marriage or maternity during the probation period.

Courts have upheld that termination of a pregnant employee during a probationary period simply because she is pregnant is an unfair dismissal. If a pregnant worker is dismissed during her probationary period, the employer bears the onus of showing that it was due to poor work performance and not pregnancy or other related conditions.

Moreover, a worker, even during the probation period, can file disputes with the Ministry of Labour for issues such as non-payment of wages and violation of safety measures.

Pay and Working Conditions

Probationers are entitled to the full agreed rate of pay. Bahrainis’ wages should be at least the minimum rates set by Tamkeen, which are BHD 350/month for high school graduates, BHD 430 for diploma graduates and BHD 500 for university graduates. Higher minimum rates are set for doctors (BHD 800/month) and engineers (BHD 500/month).

Employers must register all employees with the Social Insurance Organisation (SIO) from the first day of work. For non-Bahrainis, this involves a 4.2% monthly payment to the End of Service fund. Normal working hours are 48 hours per week, or 36 hours per week during Ramadan. Overtime is paid at legal rates.

Termination and Notice

It’s easy to end a contract during probation. Either the employer or employee can give one day’s written notice to terminate the contract. This is far less notice than for a permanent employee, who requires 30 days.

No formal hearing is required, but the dismissal must be for unsuitability. The employer must pay all outstanding wages when the employee leaves. If an expatriate worker leaves the country, the employer is still required to pay for a return flight home.

Vacation / Holidays

Annual leave entitlement accrues at the rate of 2.5 days per month from the first day of employment. Although the employer can refuse the time off on annual leave until the end of probation, they must pay out any balance due if the contract is terminated.

Paid sick leave, on the other hand, is generally only granted after three months of service. Illness during a normal probation is therefore often dealt with as unpaid leave. Paid public holidays, however, are a benefit that all employees are entitled to from day one.

Benefits of Probation Periods in Bahrain

The probation system provides several advantages to both the employer and the employee in the Bahraini labor market.

  • For Employees

The probation period allows employees to see if the new job is right for them without the risk of a long notice period. 

They can quit with just one day’s notice, making it easy to move between careers. It is not the same as an internship; they are a full employee from day one.

They earn a full salary, receive an end-of-service and work injury insurance, and as a Bahraini, if they pass this phase, more government grants and support for career training may become available to them.

  • For Employers

Probation for businesses is an important way of managing risk and validating recruitment decisions. It’s a chance to evaluate a new hire’s abilities and work ethic in a real-world environment. 

If they’re not a good fit, the contract can be terminated with minimal notice and no redundancy pay. This reduces the financial risk of making a bad hiring decision.

Conclusion

Probation is a transitional phase that allows employers to assess a new employee’s performance, as well as a new recruit’s fit in a business. The general rule in Article 21 of the Labour Law of Bahrain, along with the standard three-month duration (and six-month extension for skilled staff) plus the one-day notice period, can facilitate a trial of quality while containing liability. At the same time, the law imposes safeguards on the employer.

Terminations must not be discriminatory, and staff are to be registered for social insurance on the first day of employment. A carefully regulated trial period is a win-win that preserves the dignity and full wages of the worker and creates a solid footing for the employment relationship.

Dealing with Bahraini labor compliance can be a hassle, but fortunately, Remote People can help. We can hire employees, manage local payroll and ensure every contract is 100% compliant. Contact Remote People today to learn how we can make your business compliant in Bahrain.

Frequently Asked Questions

Dismissing a woman because of pregnancy is forbidden per Article 33 and would be an arbitrary dismissal even during probation. Though Article 21 permits dismissal on grounds of "unsuitability," in such a case, the employer must have documented performance reasons unrelated to the pregnancy for the dismissal. Bahraini courts have looked at these cases with a microscope. If they deem the dismissal discriminatory, they will hold the employer liable for compensation.

Statutory paid sick leave entitlement only starts after an employee has three months of continuous service. During a normal three-month probation, therefore, any sick leave taken will be unpaid. An employer can elect to provide paid sick leave as a discretionary benefit, but they are not obliged to by law before the three-month threshold.

It can only be three months, unless the nature of the job is "scientific, technical, senior administrative or of a similar nature," in which case it can be up to six months. In that case, it must be stated in writing at the time of the initial contract. An employer cannot unilaterally decide to extend a normal 3-month probationary period because they are not yet satisfied with the performance.