Bahrain

Bahraini labor law is very flexible on how employee contracts can be terminated.

Employees can typically be let go at will, provided reasonable grounds are defined and a notice period is provided before the termination is scheduled to take effect.

Employers are required to provide a notice of termination at least 30 days prior otherwise payment can be made in lieu of notice.

Employees are generally entitled to severance pay if they’re let go without justification.

Severance payments are structured based on an employee’s social security status and the terms of an employment contract, ranging from fixed-term to indefinite contracts.

Fixed-term employees are entitled to whatever remuneration they’d have received for the entire term of the interrupted contract. In contrast, employees on indefinite contracts who’re let go after three months will be owed two days’ pay for each month served, capped at 12 months’ pay — regardless of the circumstances of their dismissal.

Employees who’re not covered by the Law on Social Insurance (typically expats working in Bahrain) are entitled to an end of service gratuity based on their tenure with the employer.

• Up to 3 years: 15 days salary for each year of service

• 4+ years: 30 days salary for each year of service

Probation periods can last up to three months.