Employment Contract Template in Bahrain: Terms, Types and Sample

If you need a Bahraini employment contract template in PDF format or another file format, you can easily find sample contracts online. However, make sure the template complies with the latest Bahraini laws and regulations.

In this article, we explain how to prepare an Employment Contract Template in Bahrain, whether it is a fixed-term contract or a permanent employment contract in Bahrain, meaning an indefinite-term contract. We also cover the key clauses and essential points that should be included to protect the rights of both parties.

Are you looking for an employment contract template in Bahrain, or are you having difficulty drafting or reviewing your employment contract in a way that protects your legal rights?

Contact an Employment Contract Lawyer in Bahrain

You can first review the employment contract template in Bahrain before requesting legal advice.

Employment Contract Template in Bahrain

An employment contract in Bahrain is a written legal agreement between an employer and an employee that sets out the terms and conditions of employment. It helps establish a clear professional relationship between both parties and explains their employment rights and obligations, including salary, benefits, and leave such as bereavement leave.

When preparing an Employment Contract Template in Bahrain, several essential points should be included to ensure that all necessary details are covered and the rights of both the employer and employee are protected. These terms can also have a significant impact on future labour and employment cases. The main elements include the following:

Details of Both Parties

Clearly state the personal details of both parties, including:

• • The employer’s name or company name.
  • The employee’s full name.
  • Nationality and job title.

Employment Start Date

State the employment start date clearly and accurately according to the agreement between both parties.

Contract Duration in an Employment Contract Template in Bahrain and Permanent Employment Contracts

Specify the type of contract when preparing an Employment Contract Template in Bahrain, whether it is a fixed-term contract or a permanent employment contract, meaning an indefinite-term contract.

A fixed-term contract states the starting and ending dates of the employment relationship. An indefinite-term contract, on the other hand, continues without a specific expiry date and may be terminated in accordance with the legal rules and procedures governing notice and termination of employment.

Salary and Benefits

This clause should:

• • State the employee’s salary and the method of payment, whether monthly or weekly.
  • Include any additional benefits, such as allowances, health insurance, annual leave, and other agreed benefits.

Working Hours and Days Off

This section should:

• • Specify the employee’s daily or weekly working hours.
  • State the weekly days off and annual leave entitlements available to the employee.

Employee and Employer Obligations

The contract should clearly state the obligations of both the employee and employer, including professional duties, responsibilities related to job performance, and matters concerning work injuries or workplace accidents if they occur.

Contract Termination Procedures

When dealing with termination:

• • Explain how the contract may be terminated by either the employee or employer while observing the applicable notice period.
  • Include the circumstances or reasons that may lead to termination of the contract.

It is important to understand that contacting a labour lawyer is not an unnecessary step in many employment disputes. In some situations, professional legal assistance may be essential, so do not hesitate to seek advice when needed.

Difference Between Terminating and Rescinding an Employment Contract

Under Bahraini law, the distinction can generally be explained as follows:

1. Termination of an employment contract: This means bringing the employment relationship to an end through a normal or legally recognised process, such as the expiry of a fixed-term contract or termination of an indefinite-term contract by giving notice.Article 99(a) of Bahrain’s Labour Law for the Private Sector, Law No. 36 of 2012, provides that either party may terminate the contract after giving the other party at least 30 days’ prior notice.
2. Rescission of an employment contract: This generally refers to ending the contract because one party has breached its obligations. The relationship does not end through its normal course but because there is a legal or contractual reason justifying its early termination.

Employee Entitlements When the Contract Is Terminated by Mutual Agreement

When signing a mutual termination agreement, it is advisable to include a final settlement clause to reduce the possibility of future employment disputes. The employee may acknowledge receiving:

1. Payment for unused leave.
2. End-of-service indemnity.
3. Any outstanding salary or financial entitlements.

Immediate Termination Without Notice

Article 107 of Bahrain Labour Law allows an employer to terminate an employment contract without notice or compensation for termination of the employment contract in certain circumstances, including:

1. The employee assumes a false identity.
2. The employee submits forged certificates.
3. The employee commits an error that causes substantial financial loss.

The competent authorities must be notified of the incident within two working days from the time the employer becomes aware of the seriousness of the loss.

If none of the legally recognised grounds can be established, the termination may be considered unfair dismissal, which may give the employee grounds to bring a claim against the employer.

Types of Employment Contracts in Bahrain

Employment contracts in Bahrain vary depending on the duration of the employment relationship, the nature of the work, and the agreement reached between the employee and employer. A contract may be fixed-term or indefinite-term, and it may also relate to part-time or seasonal work.

The contract should clearly state the main terms of employment so that both parties understand their rights and obligations from the beginning of the employment relationship.

1. Fixed-Term Employment Contract

A fixed-term employment contract is concluded for a specific period agreed in advance between the employee and employer, such as one or two years, or for the completion of a particular assignment within a defined period.

The contract states its starting date, duration, and the terms governing its expiry. The employment relationship ends when the agreed period expires unless both parties agree to continue or renew the contract in accordance with the applicable legal provisions.

2. Indefinite-Term Employment Contract

An indefinite-term employment contract continues without a fixed date for the employment relationship to end. For this reason, it is sometimes referred to as a permanent employment contract in Bahrain.

The contract remains valid for as long as the employment relationship continues between both parties. Either the employee or employer may terminate it in accordance with the applicable legal requirements, procedures, and notice period.

3. Part-Time Employment Contract

A part-time employment contract is suitable when an employee performs their duties for fewer hours or working days than the employer’s normal full-time arrangement. The contract should preferably state the agreed working hours or days, the nature of the duties, the salary and how it is calculated, and the duration of the contract if it is fixed-term. This helps make the terms clear to both parties and reduces the likelihood of future disputes.

Working part-time does not mean that the employment relationship does not require a clear contract. Its terms should still be properly regulated according to the actual nature of the work and the agreement between the employer and employee.

4. Seasonal Employment Contracts

Seasonal employment contracts are used when an employer needs workers during a particular season, a specific part of the year, or for a temporary activity where additional workers are required.

The contract should clearly state the nature of the work, its duration, the salary, and the agreed conditions so both the employee and employer understand the scope and duration of the employment relationship.

Employment Contract Template in Bahrain

First Party (Employer):

• Name: _______________
• Address: _______________
• Commercial Registration Number: _______________

Second Party (Employee):

• Name: _______________
• ID Number: _______________
• Address: _______________

Introduction: This contract has been concluded between both parties in accordance with the Bahrain Labour Law to regulate the employment relationship between them.

• Position and Duties:The employee is appointed to the position of ____________ (specify position).

  The employee agrees to perform the required duties in accordance with the employer’s instructions.

• Contract Duration:
  • Fixed-term contract: From ______________ to ______________.
  • Indefinite-term contract: Begins on ______________ and continues until further notice.
• Salary and Benefits:
  • Basic Salary: ____________ (amount in Bahraini Dinars).
  • Benefits: Housing allowance, transportation allowance, health insurance, where included in the contract.
• Working Hours and Leave:
  • Working Hours: ____________ (number of daily working hours).
  • If this is a part-time employment contract, the agreed number of working hours or working days shall be: ____________, according to the agreement between both parties and the applicable regulations.
  • Annual Leave: ____________ (number of days).
• Termination of the Contract:
  • By the employer: Prior notice of at least ____________ (number of days).
  • By the employee: Prior notice of at least ____________ (number of days).
• Confidentiality:The employee agrees to maintain the confidentiality of information relating to the company throughout the employment period and after the employment relationship ends.
• Dispute Resolution:Disputes shall first be resolved amicably. If an amicable settlement cannot be reached, the matter shall be referred to the competent Bahraini courts.

Signatures of Both Parties:

Employer’s Signature

Employee’s Signature

Date of Signature: ___________

Before preparing or signing any contract, consult a contracts lawyer to help protect you from future disputes. You can use the WhatsApp button at the bottom of the page to contact a lawyer from Abdulrahman Khalifa Law Firm.

Does a Permanent Employment Contract in Bahrain Have a Fixed Duration?

A permanent employment contract in Bahrain does not have a predetermined expiry date under the Labour Law. It is an indefinite-term contract that continues between the employee and employer until it is terminated in a manner permitted by law.

The contract should clearly state the rights and obligations of both parties, including salary, working hours, leave entitlements, and the procedures for ending the employment relationship.

FAQ About an Employment Contract Template in Bahrain

Below are some frequently asked questions about an Employment Contract Template in Bahrain:

In conclusion, anyone preparing an Employment Contract Template in Bahrain should have a clear understanding of the applicable local laws to ensure that the contract is legally valid and protects their rights. Consider consulting a lawyer specialising in labour law to ensure the contract is drafted in accordance with Bahraini legal requirements.

If you need a Bahraini employment contract template in PDF format or a ready-made employment contract template, contact Abdulrahman Khalifa Law Firm in Bahrain for specialised legal advice.

To learn more, read our guide on unfair dismissal under Bahrain Labour Law.

Lawyer Abdulrahman Khalifa

A Bahraini lawyer and the founder of a legal consultancy firm established in February 2019. He holds a Higher Degree in Sharia and Law from Al-Azhar University. He has extensive experience in court representation and providing legal advice in criminal, personal status, civil, and commercial matters. He is known for delivering clear, practical, and effective legal advice aimed at protecting his clients’ rights and interests, and has achieved tangible results in notable cases, including commercial litigation and inheritance matters