End-of-Service & Arbitrary Dismissal in Bahrain: Your Rights (2026)
Bahrain's leaving indemnity (Art. 116), the 2024 SIO change for expats, and arbitrary-dismissal compensation (Art. 111: min 1, max 12 months) under Law No. 36 of 2012.
Bahrain's leaving indemnity (Art. 116) is half a month's wage per year for the first three years and one month per year after. Since 1 March 2024, expatriate workers' end-of-service is funded through monthly SIO contributions (4.2% then 8.4%) and claimed from the SIO rather than paid as a lump sum by the employer. Arbitrary dismissal without valid cause (Art. 111) is compensated at two days' wages per month of service, with a minimum of one and a maximum of twelve months' wages. Worker claims are court-fee-exempt.
FAQ
Do I lose my indemnity if I resign in Bahrain?
No. Under the current Labour Law No. 36 of 2012, a resigning worker is entitled to the full Article 116 indemnity with no reduction. It is forfeited only in the gross-misconduct dismissal cases listed in Article 107.
How did Bahrain's end-of-service system change for expats in 2024?
Since 1 March 2024, expatriate workers' end-of-service is funded by monthly employer contributions to the Social Insurance Organisation (4.2% in the first three years, 8.4% after) and is claimed from the SIO, rather than paid as a lump sum by the employer at termination.
What is the compensation for arbitrary dismissal in Bahrain?
Under Article 111, two days' wages for each month of service, with a minimum of one and a maximum of twelve months' wages. If the dismissal is discriminatory (Articles 104/105), an extra half of the Article 111 amount is added.