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Upon termination or resignation, the employee would then apply to the SIO for their end-of-service entitlements, in contrast to the current system whereby employers pay the leaving indemnity to the relevant employee upon termination or resignation.
The Leaving Indemnity Resolution introduces the following provisions in relation to the end-of-service gratuity system for non-Bahrainis:. However, the changes in the law will mean that employers no longer accrue internally, given that the SIO will now require employers to make contributions for the non-Bahraini employees' leaving indemnity to the SIO fund on a monthly basis. The content of this article is intended to provide a general guide to the subject matter.
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Our firms help international employers navigate the world of work successfully. Explore Firm Details. Bahrain Employment and HR. The Leaving Indemnity Resolution introduces the following provisions in relation to the end-of-service gratuity system for non-Bahrainis: Starting from the Resolution's effective date of 1 March , employers will have a grace period of one month to submit all required data on wages for all insured workers, including non-Bahraini employees, to the SIO.