GCC: Reforms vs. Reality

Bahrain
 

Bahrain launched the third and final phase of the “Wage Protection System” in January 2022. The third phase will cover businesses with up to 49 workers. However, the scheme falls short of adequately protecting migrant workers from wage theft.  

The failure to protect migrants leads to devastating outcomes. Former GPZ employee Muhammad Elias died a year after leaving Bahrain empty-handed. Muhammad was one of the thousands of migrant workers whose wages and end-of-service benefits were stolen for years by GP Zachariades (GPZ), a now-defunct construction company that held public and private contracts worth hundreds of millions of dollars.

Additionally, recent data released by Bahrain's Social Insurance Organisation (SIO) reveal an extreme disparity between migrant workers’ contributions to the unemployment fund and their ability to actually access these benefits.

Amid poor labour practices, private sector profits are soaring while migrants in Bahrain struggle with low wages and rising living costs that make workers even more vulnerable.

Kuwait
 

Ill-planned Kuwaitisation schemes have resulted in the large-scale termination and wage theft of non-Kuwaiti public sector workers. Hundreds of public sector workers have been denied end-of-service benefits after being let go due to the increased localisation quotas. Wage theft is also on the rise in the domestic work sector, forcing workers into an irregular status leading to an increase in the number of undocumented domestic workers. In 2021, nearly 50% of the 151,690 ‘residency violators’ in the country were domestic workers.

Oman
 

Oman’s Ministry of Labour issued Ministerial Decision 235/2022 on 14 July 2022 to localise 207 jobs; jobs typically held by migrant workers including security guards and bus drivers, can now only be held by nationals. The Ministry had earlier reduced fees drastically for issuing and renewing visas for migrant workers. Companies compliant with Omanisation quotas will see an added reduction of fees, up to 89% less. 

Omani authorities also announced in April that companies and individuals are exempt from fines for the delayed issuance or renewal of work permits, provided that they renew before September 1, 2022.

Qatar
 

Qatar’s Ministry of Labour implemented a number of reforms affecting domestic workers, including an increase in their probation period from three months to nine months, a still-unclear regulation that further increases workers’ vulnerability. Qatar has also set a price cap on recruitment fees based on nationality. The maximum fee ranges from a high of QR17,000 (US$4700) for Indonesian workers to a low of QR9,000 (US$2500) for Kenyan and Ethiopian workers. 

Labour violations have also been on the rise In the run-up to the World Cup.  Workers report long work hours without adequate overtime compensation, non-payments, and the misuse of project visas. A number of worker protests have resulted in deportations. Earlier this year, Qatar Vaccination Centre staff members employed on temporary contracts complained they were not paid for over two months. Uber and Careem drivers in Qatar also face systematic exploitation as they are excluded from labour protections by both limousine companies that sponsor them and the ride-hailing companies themselves. 

Qatar also introduced a compulsory private health insurance system for all non-Qatari residents, including visitors and those employed in the public and private sectors.

Saudi Arabia
 

Saudi authorities have added two new conditions under which domestic workers can change employers without their current employer’s permission. Nonetheless, the conditions remain limited and migrant domestic workers cannot easily navigate the bureaucracy needed to complete the transfer of sponsorship, especially without assistance. The experiences of Kenyan domestic workers in the country — which include rape, abuse, neglect, and death threat — reflect the lack of protection in the sector.

Workers who fall under the labour law also face protection gaps. Saudi Arabia has the highest mortality rate amongst Nepali workers. Despite the high number of deaths, authorities fail to conduct investigations into the underlying causes of these deaths. Saudi also has the highest number of suicides in the Gulf among Nepali workers. And despite reforms to the Kafala system, false huroob (absconding) cases are on the rise. 

Non-nationals are facing pressure from expanding Saudisation programs and concomitant efforts to reduce the expat population. Half a million migrants in Jeddah have been evicted from their homes for Jeddah’s new development.

                          

UAE

Riders with food delivery apps staged a rare strike in Dubai, complaining of dangerous and exploitative employment terms. Following viral videos on social media, the app companies Deliveroo and Talabat were forced to reconsider the new policy that would have reduced workers’ wages.

The Minister of Human Resources & Emiratisation (MoHre) announced a new unemployment insurance plan for public and private sector workers of all nationalities, though details of the scheme remain unclear. The Ministry also reduced fees for issuing work permits for expatriate employees to incentivise companies that surpass nationalisation quotas, alongside steep penalties for noncompliance.   

Meanwhile, domestic workers have been included in the Wage Protection System (WPS) on a voluntary basis. Employers will have the option of paying domestic workers' wages through banks, exchange offices, and smart apps provided by financial institutions that have been authorised to provide this service by the Central Bank. Across the GCC, the WPS system has failed to prevent wage theft, and making it voluntary for employers of domestic workers is likely a perfunctory move.

Reporting on the UAE remains restricted by low press freedoms and expansion of cybercrime laws. A Ugandan journalist deported from the country over a decade ago reflects on the stories he was forced to censor, including those on the deaths of migrant workers.