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Thu 22 Jul 2010 07:46 AM

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Hundreds of Bahrain firms sued over labour fees

The kingdom's labour authority is taking action against firms that fail to pay fees.

Hundreds of Bahrain firms sued over labour fees
LABOUR FEES: Hundreds of companies are reported to be involved in the clampdown.

Bahrain’s Labour Market Regulatory Authority (LMRA) is reported to be taking hundreds of companies to court for failing to pay worker fees.

Firms are also being sued for failing to update their records with the labour authority, the Gulf Daily News reports on Thursday.

Bahrain Chamber of Commerce and Industry has been inundated with complaints from businesses about summonses from the Public Prosecution, the paper reports.

Firms across the kingdom have been involved in a series of protests over labour fees for foreign workers, which they claim are expensive, and combined with the impact of the global downturn, have harmed their company’s finances.

Nader Alawi, member of the chamber’s Small and Medium-sized Enterprise Committee, said it had received up to 100 phone calls from concerned business owners about the threat of legal action.

The committee has called for the court cases to be looked into due to the sheer number of companies involved, and urged the scrapping of all LMRA fees and fines.

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Dorothy 10 years ago

Were these businesses unaware of these fees? Did they not know about them prior to the possibility of legal action being taken? Ignorance of the law is no excuse! Please pardon my ignorance of this situation; I can only summise what I have read. To be in business, all aspects of doing business and the employment of workers means to have full knowledge of present laws. This is just my humble opinion, I mean no disrespect to any and all people involved in this situation. Thank you