ARTICLE · 12 DECEMBER 2024
Employee vs. Consultant: Navigating The Legal Fine Line To Avoid Misclassification
Our associate Habiba Mokhtar, discusses the risks of misclassifying employees as consultants in Bahrain, which can lead to costly lawsuits, fines and legal liabilities due to violations of the Labour Law.
Our associate Habiba Mokhtar, discusses the risks of
misclassifying employees as consultants in Bahrain, which can lead
to costly lawsuits, fines and legal liabilities due to violations
of the Labour Law.
Misclassifying employees as consultants can be a costly mistake
for establishments in Bahrain, potentially leading to unexpected
lawsuits and fines. This misclassification can deprive employees of
benefits under Law No. 36/2012 Issuing the Labour Law (the Labour
Law) and expose businesses to unexpected liabilities, including
claims for compensation for unutilized benefits, protections, and
unfair dismissal if termination lacks legal justification. Since
courts assess the true nature of the relationship, rather than
relying solely on contractual terms, businesses relying too heavily
on written agreements may unintentionally misclassify employees.
This article aims to clarify the determination of an employment
relationship under Bahraini law and outline best
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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