The employee must issue a signed written resignation letter.

30 days notice unless a longer period is contractually agreed upon.

• Employees are entitled to severance compensation calculated as half a month’s salary for each of their first three years of service, and a full month’s salary for every year of service thereafter.
• This is calculated pro‑rata for partial years and based on the most recent wage, excluding allowances other than social allowance.

• Since 1 March 2024, the Social Insurance Organization (SIO) has managed end-of-service gratuity instead of employers paying it directly. Employers must contribute monthly an amount of wages.
• Employers calculate end-of-service gratuity based on the employee’s basic salary and any social allowance, excluding other allowances. The rate equals 15 days of salary for each of the first three years of service and one month of salary for every year thereafter.
• The employee must apply to the SIO to receive their gratuity payment. The SIO typically processes applications within five working days.

Under Article 57 of the Bahraini Labour Law, employers may summarily dismiss employees without notice or gratuity for serious offenses, such as:

• Forgery or presentation of false identity documents
• Significant errors causing material loss
• Disobedience to workplace safety instructions
• Breach of fundamental duties or confidentiality
• Criminal convictions involving dishonesty or moral turpitude
• Intoxication at work or assaulting colleagues
• Unauthorized absence exceeding thresholds (e.g., over 20 intermittent days or 10 consecutive days per year).

Employers can terminate employment for other valid reasons, such as misconduct (not amounting to gross), poor performance, redundancy, or business restructuring, but only with proper notice, per Articles 56, 58, and 59.

Employers can terminate employment for valid reasons such as misconduct (not amounting to gross), poor performance, redundancy, or business restructuring but only with proper notice, per Articles 56, 58, and 59.

• Calculation:
  • First 5 years: Half a month’s wage per year of service.
  • Beyond 5 years: One month’s wage per year.
  • Part‑year service is calculated proportionally.
• Payment Eligibility:
  • Gratuity is due on termination unless the cause is lawful summary dismissal for gross misconduct under Article 57, where the employee forfeits entitlement.

• Employers pay monthly gratuity contributions into the Social Insurance Organization (SIO).
• Employee Claim: Upon termination, employees apply directly to the SIO, and employers don’t pay gratuity for service periods covered by the SIO.

• Entitlement: Employees are generally entitled to end-of-service gratuity, even when the termination is by mutual agreement. The formula includes:
  • Half a month’s wage per year for the first 5 years;
  • One month’s wage per year thereafter;
  • Plus pro‑rata calculation for partial years.

• Benefits via SIO:: Employer contributions go to the Social Insurance Organization. The employee later claims the gratuity from SIO, and mutual agreements do not alter this mechanism.

When a fixed-term contract reaches its agreed end date without early termination, Bahraini law doesn’t require employers to pay additional severance or compensation.

Once the contract term concludes, obligations end, unless the contract or applicable law specifies otherwise. This scenario aligns with legal norms under Bahraini Labour Law (Law No. 36 of 2012).

If the employer ends a fixed‑term contract early, before its natural term concludes, Bahraini Labour Law mandates compensation to the employee-even if the termination is ostensibly for cause.

Under Article 111 of Labour Law No. 36/2012, if the employer terminates a definite-duration contract without cause (or with illegitimate cause), the employee is entitled to compensation equal to the wages for the remaining period of the contract. However, the parties may agree to a lesser amount, provided it is not less than the lesser of:

• Three months’ wages, or
• The remaining term of the contract, whichever is less.

If the termination qualifies as arbitrary dismissal (i.e. unlawful or unfair), the employee is further entitled to additional compensation equal to half of the original compensation due, unless the contract stipulates a higher amount.