A plan to remove the BD500 fee that allows firms to bypass Bahrainisation quotas was passed by MPs yesterday, despite strong objections from the Labour Market Regulatory Authority (LMRA) and the Bahrain Chamber of Commerce and Industry (BCCI). The LMRA cautions that scrapping this arrangement may lead businesses to rely more on foreign hires instead of locals. It believes the fee — tacked onto each extra expat permit — currently encourages companies to stick to Bahrainisation quotas. Without it, the regulator contends, employers will lose a key nudge that keeps Bahraini workers front and centre. The chamber also raised concerns, arguing that several jobs need expertise from abroad. In its view, removing the fee system could trigger workforce gaps, dampen quality, and weaken Bahrain’s economy. Joblessness It favours an all-encompassing overhaul of labour rules that tackles joblessness at the roots yet still gives firms enough room to operate. Since 2016, this scheme has run under a Cabinet directive on LMRA charges. It has been tweaked over the years to adjust to changing conditions, and officials say it lines up with Bahrain’s goals for the labour market between 2023 and 2026. Steps The LMRA has likewise introduced other steps to shore […]