Lawyer Rawan Swar:
Economic crises do not suspend legal rules; rather, they test the strength of commitment to them. With recurring economic downturns, some businesses find themselves compelled to adopt rapid cost-cutting measures that may directly affect employees’ rights, such as unpaid leave or salary reductions. However, such measures remain governed by a clear legal framework in the Kingdom of Bahrain, which seeks to balance the interests of the business with the protection of employees.
Wages are considered one of the most fundamental rights guaranteed under Bahraini Labour Law, and they may not be altered or reduced unilaterally by the employer. The employment relationship is based on mutual consent, and any modification to its essential elements—foremost among them wages—requires the explicit agreement of the employee. Furthermore, an employee is entitled to receive their full wage if they are ready and willing to work but are unable to do so for reasons attributable to the employer, thereby ensuring that the employee is not burdened with consequences beyond their control.
At the same time, the law does not overlook the protection of employers in exceptional circumstances. Article (43) of the Labour Law provides that if an employee reports to work but is unable to perform their duties due to force majeure beyond the employer’s control, they are entitled to half of their wage. This reflects the legislator’s intent to fairly distribute the impact of unforeseen circumstances between both parties.
As for unpaid leave, it is, by its nature, a voluntary arrangement between the employer and the employee and may not be imposed unilaterally. Forcing an employee to take leave without pay constitutes a legal violation and may give rise to claims for compensation.
With regard to annual leave, the law permits the employer to determine its timing in accordance with business needs, provided that the employee is not deprived of their entitlement or the corresponding pay, and that leave balances are settled within the timeframes prescribed by law.
In conclusion, Bahraini Labour Law is grounded in the principle of balance between employees’ rights and employers’ interests, particularly during exceptional economic conditions. Accordingly, sound legal practice requires adherence to the governing provisions and reliance on consensual solutions that ensure business continuity while safeguarding the fundamental rights of both parties, thereby promoting stability and minimizing disputes.