Bahrain Just Ended the Sponsorship System - Here’s How It Affects You

For decades, the kafala (sponsorship) system defined the working lives of millions of expatriate workers across the Gulf. Your employer was your legal sponsor. You couldn't change jobs, leave the country, or make most legal decisions without their permission. If the relationship turned abusive or exploitative, your options were limited.

Bahrain has changed this fundamentally.

The Bahrain Labour Market Regulatory Authority (LMRA) rolled out sweeping reforms in 2025 and 2026 that have made Bahrain the most worker-friendly destination in the Gulf for Indian migrants. If you're considering a Gulf move, here's what has changed and what it means for you.

Reform 1: The Flexible Work Permit (FWP)

This is the headline change. After completing one year with your employer, you can transfer to a new employer without your current employer's permission. No permission needed. No release letter required.

This single reform eliminates the core mechanism of kafala exploitation. Employers who underpay, overwork, or mistreat workers can no longer count on the worker being trapped. The threat of job transfer creates a meaningful incentive for employers to behave fairly.

How it works in practice

Complete 12 months with your current employer
Find a new employer who wants to hire you
Apply for a work permit transfer through the LMRA portal or app
The transfer is processed without requiring your current employer's signature or consent

The process is digital, documented, and tracked by LMRA.

Reform 2: Wage Protection System (WPS)

All salaries in Bahrain must now be paid electronically through the Wage Protection System - a central government-monitored payment infrastructure.

What this means for you

Every salary payment is recorded
You receive an SMS confirmation for each deposit
If your employer fails to pay on time, the system flags it automatically
LMRA receives an alert within 3 days of a missed payment and can take enforcement action

Late or withheld salary was the most common complaint among Gulf workers before WPS was fully implemented. The electronic paper trail makes it nearly impossible for employers to deny non-payment.

Reform 3: Universal Health Insurance

All foreign workers in Bahrain must now have health insurance provided by their employer. This is mandatory - it cannot be excluded from any employment contract.

Previously, health coverage was inconsistent. Workers in certain sectors (domestic, construction) often found themselves paying out of pocket for medical care. The mandatory insurance requirement closes this gap.

Reform 4: End-of-Service Benefits (Gratuity)

Bahrain's Labour Law mandates gratuity payments on termination:

15 days per year for the first 3 years of service
1 month per year for every year after that

This applies regardless of why the employment ends (unless the worker is terminated for serious misconduct, which has a specific legal definition). If you work for 5 years and your employer tries to leave without paying gratuity, LMRA can freeze their licence.

Reform 5: No Passport Confiscation

By Bahraini law, your employer must return your passport within 48 hours of request. Indefinite passport holding - once common practice - is now explicitly illegal. Employers who confiscate passports face fines and licence sanctions.

Keep digital copies of all your documents regardless. But knowing you have the legal right to demand your passport back is important protection.

How to Check Your Own Status and Rights

Bahrain LMRA App

Download the official LMRA app (available on iOS and Android). You can view:

Your current work permit and expiry date
Your employer's name and registration status
Salary payment history

This is your first line of self-protection. Know your status at all times.

LMRA Helpline

Call 80008001 for the LMRA helpline (available in English and Arabic). For worker complaints and rights violations, you can also file online at LMRA portal.

Indian Embassy in Bahrain

Manama: +973-17-724455 Open for consular services Sunday - Thursday, 8:30am-12:30pm

An Honest Comparison: How Bahrain's Reforms Compare to Other Gulf Countries

Protection	Bahrain	UAE	Qatar	Saudi Arabia
Job change without employer permission	After 1 year	After probation + certain conditions	Exit permit abolished, job change has limits	Reforms ongoing
Wage Protection System	Yes	Yes	Yes	Yes
Minimum wage	No (sector-specific)	AED 1,000 basic	QAR 1,000	No
Mandatory health insurance	Yes	Yes	Yes	Yes
Passport return within 48 hrs	Yes (law)	Yes (law)	Yes (law)	Yes (law)

Bahrain's Flexible Work Permit gives it a clear structural advantage for workers who want the ability to change employers without permission after completing one year.

What This Means If You're Considering Bahrain

The reforms are real and enforceable. Bahrain has one of the most transparent labour market systems in the Gulf, and the LMRA has demonstrated willingness to take action against employers who violate worker rights.

This doesn't mean every Bahrain employer is perfect. Do your due diligence on any employer before you sign a contract - check their LMRA registration, ask for references from current Indian workers if possible, and ensure your contract matches the offer letter.

But the structural protections are now genuinely strong. For Indian workers who have hesitated about Gulf employment due to fear of being trapped in a bad situation, Bahrain's reforms directly address that concern.

Bahrain is now one of the most worker-friendly Gulf destinations.

The Gulf CV vs the Indian CV: Key Differences

Indian CVs and Gulf CVs differ in ways that matter significantly for shortlisting. Here's what changes:

Gulf CV includes, Indian CV often omits

Passport number and expiry date (Gulf employers need this for visa processing)
GAMCA clearance status ("Medical cleared, available to travel within 30 days")
Nationality and visa status if currently in Gulf
Specific Gulf project names, ARAMCO/ADNOC/QP standards experience
Gulf-specific certifications (DEWA approval, NEBOSH IGC, CISRS)

Gulf CV omits, Indian CV often includes

Photographs (not standard in Gulf HR, and can create issues)
Hobbies and personal interests (irrelevant and wastes space)
Religion, caste, marital status (not required and best excluded)
Standard long objective statements ("Seeking a challenging role in a dynamic organisation")
References listed in full (unnecessary; "available upon request" is standard)

Tailoring Your CV by Destination Country

The same candidate applies differently for UAE vs Saudi vs Qatar. Here's what to emphasise:

UAE (construction/trades): Emphasise MOHRE-compliant project experience, safety certifications, and familiarity with UAE site management culture. Mention any DEWA or ADDC-related electrical work.

Saudi Arabia (construction/oil & gas): ARAMCO and SABIC project experience is gold. Mention specific Saudi standards (SAES) if you've worked to them. Safety certifications (NEBOSH, IOSH) are weighted heavily.

Qatar (hospitality): Five-star property experience by brand name, THSC certification, and English language proficiency should lead. Customer service achievement metrics if you have them.

Kuwait (healthcare): IELTS score, INC registration number, DataFlow completion status, and clinical specialty experience should be prominent.

Getting Your CV in Front of the Right People

Having a perfect CV means nothing if it never reaches the right recruiter.

The most effective channels for Gulf CV distribution:

Direct application through Gulf employer career portals (Marriott, ARAMCO, ADNOC all accept direct applications)
LinkedIn - set your profile to "Open to work" with Gulf location visibility and connect with Gulf-based Indian HR managers
Verified Gulf hiring platforms like skilledupIndia that send your CV directly to employers actively recruiting

The least effective channels: generic job board submissions without employer visibility, cold WhatsApp messages to unknown contacts claiming to be recruiters, and agents who collect CVs without disclosing which employers they represent.

Your Gulf career starts with the right first impression. Make it count.

Browse verified Bahrain employer listings on skilledupIndia - LMRA-registered employers only.