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Order No. (3) of 2014 With Regard to Regulating Permits for Labour Supply Agencies

Source: Labour Market Regulatory Authority Management

Chairman of Labour Market Regulatory Authority:

Having reviewed Law No. (19) of 2006 Concerning the Regulation of Labour Market, as amended, particularly Articles (28) and (29) thereof;
Legislative Decree No. (27) of 2011 Concerning the Reformation of the Board of Directors of Labour Market Regulatory Authority; and
Upon submission by the Chief Executive Officer of the Labour Market Regulatory Authority; and
With the approval of the Board of Directors of Labour Market Regulatory Authority

Orders as follows:

Article (1):

In implementing the provisions of this Order, the following words and phrases shall have the meanings shown in front of each, unless the context requires otherwise:

The Kingdom: The kingdom of Bahrain.

Law: Law No. (19) of 2006 Concerning the Regulation of Labour Market.

Authority: Labour Market Regulatory Authority.

Board of Directors or Board: Board of Directors of the Authority.

Chief Executive Officer: Chief Executive Officer of the Authority.

Labour Supply Agency: The employer who is authorized to supply workers to a third party for a specific period or to fulfil a certain assignment without supervision by the employer (supplier) on the execution of work.

Licensee: Labour Supply Agency (supplier).

Employer: each natural or juristic person who employs one or more workers to perform a certain work in the Kingdom for a wage or otherwise, fixed or variable, cash or in kind, and shall include any government body, establishment, public authority, company, office or enterprise or other private sector’s entities.

Worker: Every natural person working for a wage, of any kind, fixed or variable, cash or in kind, with an employer and under his management or supervision.

Work Permit or Permit: a permit issued by the Authority according to the provisions of the Law, to an employer with regards to hiring a certain foreign worker according to the terms specified in the permit.

Article (2):

The following are required to grant a permit for a labour supply agency:

  1. Must be a Bahraini citizen or a juristic person fully owned by him.
  2. Must be registered in the Commercial Registry.
  3. Must settle all the dues and fees of the Authority.
  4. The applicant, licensee or employer should not have breached any of the fundamental obligations that are imposed by the of Labor Market Regulation Law and the regulations, rules or orders issued in implementation thereof.
  5. There should be no labour supply agency permit has been previously issued to the applicant that was canceled in accordance with the provisions of the Law.
  6. It should not be proved that the licensee has ceased practicing his activity, or closed his activity or changed the headquarters for practicing the activity, in violation of the provisions of the Law and the existing orders in this regard.
  7. Must provide a good conduct certificate proving that he has not been convicted in a crime, felony or misdemeanor affecting his honor or honesty unless he has been rehabilitated. This also applies to the owners of juristic person.
  8. Payment of the adjudged fines under final judgements in accordance with the Labour Market Regulatory Law.
  9. Specify the economical or professional specialization for which he wants to supply workers, provided that such specialization is among the activities and professions specified by the Authority without prejudice to the conditions of granting work permits or temporary work permits.
  10. Must present evidences of organizing his labour supply agency work which could be in a form of a plan or a programme supported by samples of documents and contracts that will be used in carrying out his activity in line with the economic or professional specialization determined by him so that it could be ratified by the Authority.
  11. He should undertake to pay the sum of BD.200.000 for each work permit issued to him.
  12. He should undertake to provide accommodation to the agency’s workers which must by adequate in terms of number and gender subject to the laws in force in this respect.

Article (3):

a.The applicant or his representative shall submit the application for obtaining permit for labour supply agencies to the Authority on the form for this purpose.

b.The application for obtaining permit for labour supply agencies shall contain all the data and information specified on the foregoing form, supported by documents, and fulfilling the requirements set out therein and also those provided in Article (2) of this Order.

Article (4):

a.The Authority shall examine the labour supply agencies to ensure fulfillment of all data, information and the terms and conditions stated in the form for this purpose, and also compliance with the terms stipulated in Article (2) of this Order.

b.The Authority shall issue its decision with its consent in writing on the application, confirming fulfillment of all the data, information, documents and availability of the required terms for its issuance.

c.The Authority shall issue the permit after the applicant provides a certificate evidencing his registration in the Commercial Registry.

The permit is personal and may not be assigned to third parties except in the event of death, whereupon it devolves to the heirs or their attorney.
The applicant, in case of declining his application to grant him the permit may appeal against this decision to the Chief Executive Officer in accordance with the provisions of Article (33) of the Law.
In all cases, the licensee must be notified of the decision issued regarding the permit, and this notification may be sent in an electronic form or by registered mail with acknowledgment of receipt.

Article (5):

The licensee undertakes as follows:

  1. To practice the activity at the headquarters of the licensee mentioned in the permit.
  2. To manage the permit’s business by himself or by a Bahraini manager.
  3. To register and update his information and contract samples that are approved by the Authority continuously and regularly in his database as per the Authority’s valid regulations in this respect.
  4. To document the supply contracts with employers in writing, provided that they are in line with the model contract approved by the Authority, with fixed period and the assignment to be carried out and to maintain a regular register in respect of these contracts.
  5. To establish regular registers with regard to the labour supply transactions that are concluded with the employers to whom he supplies workers.
  6. To establish regular registers containing informations on workers who are supplied to work with the employers.
  7. To obtain a necessary permit to practice the profession from a competent authority with regard to the occupations of the workers for whom he is authorized to supply, if their occupations fall within the occupations that the law requires obtaining a professional permit to enable them to practice in the Kingdom.
  8. To provide accommodation to the agency’s workers which must be adequate in terms of number and gender subject to the provisions of the law in this respect.
  9. To notify the Authority immediately in the event of liquidating his activity, declaration of his bankruptcy or striking out his entry in the Commercial Registry.

Article (6):

The licensee shall deposit the sum of two hundred Dinars for each work permit issued to him as a deposit with the Authority in addition to the prescribed fees for work permit.

Article (7):

The permit for labour supply agencies shall be valid for one year from the date of payment of the prescribed fees and maybe renewed for a further similar period or periods with the same procedures adopted for applying for a permit and the terms and conditions prescribed in this Order, upon a request submitted by the licensee before no more than 60 days from the expiry date of the permit.

Article (8):

a.The permit for labour supply shall expire with the expiry of its original or renewed period, as the case maybe.

b.The permit for labour supply agencies shall be canceled before the expiry of its period at any of the following events:

  1. If it is proved that the licensee has obtained the permit based on false documents or information.
  2. If the licensee has lost one or more of the conditions required for granting the permit.
  3. If a final criminal judgment is passed against the licensee, involving a criminal punishment in a crime that affects honour, integrity or immoral act.
  4. If the licensee dies if he had no heirs, or his business was liquidated, or declared bankrupt or his entry in the Commercial Registry was deleted.
  5. If the licensee requests to cancel the permit in writing.

With the exception of cancellation of the permit as per the licensee's request, the Authority must notify the licensee of its intention to revoke the permit and the reasons therefor, with specifying a deadline to respond to the contents of notice of not less than one month from the date of receipt of the notice by the licensee. If the Authority finds, after studying the reply, that cancellation must take place, the Authority shall issue a decision in this regard, and the licensee shall be notified of the same accordingly.

The notices and replies referred to in the preceding paragraph may be sent by mail or in an electronic form.

Those concerned party may appeal against the decision of canceling the permit to the Chief Executive Officer in accordance with the provisions of Article (33) of the Law.

Article (9):

The Authority may dispose of the deposit amount prescribed in Article (6) of this Order against the cost of repatriation of the foreign workers that have been recruited by the licensee, and to also to cover the amounts in arrears of the Authority dues and fines imposed against him in accordance with the provisions of the Law in the event the foreign worker, for whom the permit has been issued, has left the Kingdom.

Article (10):

The Chief Executive Officer of the Authority shall implement this Order which shall come into force from the date following its publication in the Official Gazette.

Chairman of Labour Market Regulatory Authority
Jameel Bin Mahammed Ali Humaidan

Issued on: 4 Jamadah 1, 1435 Hijra
Corresponding to 5 March 2014

Last Update: Monday 12 June 2023


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