High Labour Court Awards Former Construction Executive BD50,997 in Wage Claim

A former vice-president of a Bahrain construction company has been awarded BD50,997 by the High Labour Court following a dispute concerning unpaid wages and the end of his employment.

According to the Gulf Daily News report, the claimant, an Indian national represented by lawyer Manal Dhahi, had worked under an indefinite employment contract from March 2017. His monthly remuneration was reported as BD2,040, comprising a BD1,500 basic salary and BD540 in allowances.

The report states that the matter reached the High Labour Court after the labour disputes directorate was unable to resolve it amicably.

Reported Court Award

The total award of BD50,997 comprised:

• BD31,280 in outstanding salary arrears, plus interest;
• BD9,400 for termination without a valid reason;
• BD8,225 in indemnity benefits;
• BD1,992 for untaken annual leave;
• an experience certificate; and
• BD100 in lawyer’s fees.

The reported components total BD50,997, excluding the interest ordered on salary arrears.

What the Court Considered

The published report says the court heard witnesses, examined the circumstances surrounding the end of employment, questioned the claimant and requested bank statements. It also appointed an accountant to audit the employer’s records and prepare a financial report.

The accountant was authorized to review employment-related documents, including salary slips, leave records, end-of-service compensation, transfer details and records of outstanding amounts.

• On the evidence presented, the court found that the claimant had not received salary for:
• October and November 2022;
• August to October 2023; and

• the period from February 2024 until his final day of employment.

Termination Finding

The employer argued that the employment relationship had ended on 10 December 2023 and that the claimant had stopped working on that date. However, the report states that the company did not prove that this was his last working day.

The employer relied on an email in which the claimant indicated that he would continue working from the office but would no longer attend meetings or interact directly with clients or consultants. A letter from the Labour Market Regulatory Authority also reportedly confirmed that his work permit remained valid until March 2025.

The court treated the non-payment of wages after the claimant’s written warning as termination without a valid reason, resulting in the BD9,400 compensation award.

Interest on Delayed Salary

According to the reported verdict, interest was ordered at:

• 6% on salary delayed for six months or less; and
• 1% on salary delayed for more than six months,

subject to a maximum total interest amount of 12%.

Claim Brought on the Employee’s Behalf

The Gulf Daily News reported that lawyer Manal Dhahi initially sought BD56,311, together with compensation for delayed salary payments, including BD12,648 claimed for unjustified termination.

The final court award was BD50,997, together with the interest arrangement described above.

Why This Decision Matters

This ruling is a useful illustration of the importance of maintaining clear employment, payroll and termination records. In a disputed employment matter, the availability of records such as salary payments, leave documentation, work-permit information and correspondence can be central to establishing what occurred.

It also highlights the practical significance of attempting settlement through the labour disputes process before litigation. Where an amicable resolution cannot be reached, the court may examine witness evidence, banking information and an expert financial review before determining the employee’s entitlements.