Maintaining a balanced work environment is essential for keeping a stable professional relationship between employees and employers. However, certain situations and changes may arise that lead an employer to terminate an employment contract.
What are these situations, and how does Termination of Employment Contract by the Employer in Bahrain work?
Read the full details with the best lawyer in Bahrain.
Table of Content
Reasons for Termination of Employment Contract by the Employer in Bahrain
Dismissing an employee often raises questions about whether the employer has abused the right to terminate and what legal rules govern such a decision. This makes it important to understand when an employer may dismiss an employee and what procedures follow that decision.
In practice, lawful grounds for terminating an employment contract by the employer may include the following:
- If the employee assumes a false identity or nationality, or submits forged documents or certificates.
- If the employee neglects their work or repeatedly fails to perform the essential duties stated in the employment contract, despite a written investigation and being warned twice that repeated misconduct may lead to dismissal.
- If the employee discloses confidential information belonging to the establishment, particularly information related to industrial or intellectual property, or if the disclosure causes losses to the employer, results in the loss of a business opportunity, or gives the employee a personal benefit.
- If a final judgment is issued against the employee for an offence involving dishonesty, honour, or public morals.
- If the employee is absent without a lawful reason or an excuse accepted by the employer for more than 20 non-consecutive days in one year, or for more than seven consecutive days.
- If the employee unlawfully uses their position to obtain personal benefits.
- If the employee starts working for another establishment without complying with the applicable rules and procedures.
Procedures for Termination of Employment Contract by the Employer Under Bahrain Law
Termination of an employment contract by the employer generally involves several steps:
- Legal basis for termination: There should be a valid legal ground for ending the employment contract, whether due to the expiry of a fixed term or a serious breach of employment obligations.
- Prior notice: The employer should provide the employee with advance notice of the intention to terminate the employment contract, unless an exception applies.
- Providing the reasons: The reasons for termination should be clearly explained and formally documented to reduce the risk of future legal disputes.
- Internal investigation: If termination is based on the employee’s conduct, an internal investigation should be carried out to verify the facts and determine whether the allegations are valid.
- Signing termination documents: Once the necessary procedures are completed, the relevant official documents should be signed to formalise the termination.
- Settlement of financial entitlements: The employer should settle all amounts due to the employee, including the final salary, accrued leave entitlements, and any other compensation or benefits that may be payable.
- Issuing an end-of-service certificate: If requested by the employee, the employer should issue a certificate stating the period of service and information relating to the end of the employment relationship.
- Returning company property: The employee should return any property belonging to the employer, such as devices, documents, or other work-related items, before the employment relationship formally ends.
Following these procedures helps ensure that the termination process is handled legally and in an organised manner while protecting the rights of all parties involved.
Frequently Asked Questions
Related questions:
When can an employer dismiss an employee?
An employer may dismiss an employee in certain cases, such as when the employee is clearly intoxicated during working hours, commits an act contrary to public morals in the workplace, or verbally or physically assaults the employer, a supervisor, or a colleague during work.
When is an employee’s dismissal considered unfair under Bahrain Labour Law?
A dismissal may be considered unfair if it is based on sex, colour, religion, belief, marital status, family responsibilities, pregnancy, or childbirth.
Must the employer notify the employee before terminating the contract?
Yes. As a general rule, the employer should notify the employee before terminating the contract. However, notice may not be required in certain legally recognised cases. The employee should also be given an opportunity to present any objection or explanation where the law requires it.
Can an employer terminate an employment contract without a lawful reason?
An employer should have a lawful basis for terminating an employment contract. If an employee is dismissed without a legally valid reason, the dismissal may be treated as unfair, depending on the circumstances and the applicable provisions of Bahrain Labour Law.
This brings us to the end of our article on Termination of Employment Contract by the Employer in Bahrain. We have covered the main legal points relating to the termination of employment contracts and explained some of the most important grounds on which an employer may terminate an employment relationship under Bahrain Labour Law.
You may also read about the rules governing compensation for termination of an employment contract in Bahrain by consulting an experienced employment lawyer in Bahrain.
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
