Staff dues and permits on liquidation
How do we handle employees when closing the company?
The situation
Debts including employee dues are paid before any distribution to shareholders.
The law
- Commercial Companies Law: dissolution and liquidation: Partners resolve to dissolve, appoint a liquidator, publish notice, settle debts, then the CR is cancelled
- Law No. 19 of 2006 regulating the labour market: LMRA issues, renews and cancels work permits for non-Bahraini workers
- Edict No. 109 of 2023 on end-of-service benefits for expatriates: From 1 March 2024 employers pay SIO 4.2% a month for expatriates in years 0 to 3 and 8.4% after that
What it means for you
Pay final salaries, leave and any end-of-service amounts due outside the SIO scheme. Cancel LMRA work permits and update SIO records. For expatriates under the SIO EOSB scheme since March 2024, SIO handles the benefit for service covered by contributions.
What to do
- Compute final staff dues.
- Pay staff.
- Cancel LMRA permits.
- Close SIO records.
We can do this for youVoluntary liquidation and CR cancellation: BHD 1,500