Why Hiring in Bahrain Still Requires an LMRA Work Permit?

Introduction

Given the steady footfall of clients contacting our legal team about the Golden Residency—averaging five to seven specific inquiries a month—we noticed a significant amount of confusion surrounding how the program actually works. 

To help clear up these recurring doubts, we put together this overview. 

At its core, the demystified explanation of the term Golden Residency is that, it is a long-term, renewable 10-year visa introduced as part of Bahrain's Economic Recovery Plan, granted to foreign investors, property owners, professionals, and long-serving employees to facilitate long-term settlement and family sponsorship.

What does one need to know about Golden Residency?

The most common misconception we've heard during our interactions with our clients is that Golden Residency is something anyone can is straightaway eligible for, which is a very common misconception.  The qualifying categories are:

1. Property owners: They need to own real estate in Bahrain valued at at least 130,000 Bahrain dinars.
2. Retirees:  Resident retirees need 15 years of prior work in Bahrain and a pension of BHD 2,000 or more. Non-resident retirees must show a pension of at least BHD 4,000.
3. Talented professionals who meet specific criteria for highly skilled or talented fields.
4. Long-term residents who've been in Bahrain for more than 5 years, with an average basic salary of more than 2,000 dinars per month.

Benefits of Golden Visa

1. Offers unparalleled stability in the Gulf
2. Grants a renewable 10-year stay without the need for a traditional sponsor
3. Unlimited entry and exit privileges and, crucially , allows you to  sponsor your spouse, children, and parents to live with you in Bahrain.

The Legal Separation Between the Right to Reside and the Right to Work

It is important to understand the difference between right to reside and the right to work, Under Law No. (19) of 2006 (Regulating the Labour Market and its amendments), no foreign worker may practice any work in Bahrain without a valid work permit issued by the LMRA, regardless of the type of residency they hold.

So basically, if you are an employer or if you have an employee who is a Golden Residency Visa holder,  they cannot begin work immediately upon signing a contract. The employer must first apply for the specific work permit designated for Golden Residency holders and wait for its official issuance before duties commence.

To refer to the exact regulation from the ministry,  Decision No. (20) of 2022, states that -

" Anyone granted a residency permit in accordance with the provisions of this decision may not take up employment in the government or private sector except after obtaining the necessary permits from the relevant authorities. "

Why do many visa seekers fall into this misconception

The confusion falls in the way how Golden Residency is marketed -  as a privilege granting greater freedom in residency, movement, and work without traditional sponsorship restrictions.

This results in individuals ignoring requirements, and has the following implications -

1. Golden Residency holders without work permit is not lawful, and it exposes the establishment to legal violations from the LMRA.
2. Penalties include financial fines and administrative actions, such as suspending the establishment's services with the LMRA
3. If found in violation, there are chances of the worker's legal status being compromised.

If your are interested to learn more about Golden Residency, its benefits, and to understand your eligibility, write to us at info@manalfirm.com or give us a ping us at +97317162211 and our experts will arrange a call back for you.