--- title: Bahrain Employee Leave: Guide for ERP Configuration url: https://www.erpbahrain.com/compliance/employee-leave/ updated: 2026-10-09 publisher: BAHRAIN ERP (part of Shyphan AI Solutions Pvt Ltd) --- Compliance # Bahrain Employee Leave: Guide for ERP Configuration The records and controls to consider when configuring employee leave in an ERP system in Bahrain. Quick answer Employee Leave in Bahrain: Law 36/2012 Art 58: workers with one year's service get at least 30 days' paid annual leave at 2.5 days per month; shorter service earns pro rata leave. Art 59: annual leave balances must be settled with pay at least every two years; on termination the worker is paid for any unused balance. - Art 65: after three continuous months' service, sick leave per year is 15 days full pay, 20 days half pay and 20 days unpaid, certified by a government centre or employer-recognised clinic. - Art 65: full- and half-pay sick leave entitlement may accumulate up to 240 days. - Art 32: maternity leave is 60 days on full pay, plus up to 15 additional days unpaid; the worker may not work for 40 days after confinement. - Sources checked 2026-10-09 This page is part of our Bahrain compliance series. Related topics: [End of Service Benefits](https://www.erpbahrain.com/compliance/end-of-service-benefits/). Apply them in [Zoho Books](https://www.erpbahrain.com/zoho/zoho-books/), [Odoo Accounting](https://www.erpbahrain.com/odoo/odoo-accounting/) or [ERPNext Accounting](https://www.erpbahrain.com/erpnext/erpnext-accounting/), and see [all compliance topics](https://www.erpbahrain.com/compliance/). Checked against official sources on 2026-10-09. Source links are listed on this page. Rules change, so check the latest notice from the Ministry of Labour and your legal adviser before filing. Verified ## What the Official Sources Say - Law 36/2012 Art 58: workers with one year's service get at least 30 days' paid annual leave at 2.5 days per month; shorter service earns pro rata leave. - Art 59: annual leave balances must be settled with pay at least every two years; on termination the worker is paid for any unused balance. - Art 65: after three continuous months' service, sick leave per year is 15 days full pay, 20 days half pay and 20 days unpaid, certified by a government centre or employer-recognised clinic. - Art 65: full- and half-pay sick leave entitlement may accumulate up to 240 days. - Art 32: maternity leave is 60 days on full pay, plus up to 15 additional days unpaid; the worker may not work for 40 days after confinement. In Practice ## What This Means for Your ERP - Accrue annual leave at 2.5 days per month of service and flag balances older than two years for settlement. - Configure sick leave bands (15 full, 20 half, 20 unpaid) with payroll pay-rate mapping and a medical certificate requirement. - Set up a maternity leave type of 60 paid days plus 15 optional unpaid days. Sources ## Official Sources - [Law No. 36 of 2012 - Labour Law for the Private Sector (LMRA-hosted English text)](https://www.lmra.gov.bh/files/cms/shared/file/labour%20law.pdf) Checked on 2026-10-09. Overview ## Employee Leave in Your ERP Employee Leave affects how records are captured, approved and reported in your ERP. This guide lists the records involved and the controls worth putting in place. The official rules come from the Ministry of Labour and your legal adviser. We configure the system to what your adviser confirms. - Leave types - Balances - Requests and approvals - Public holidays More ## Related Guides - [ERP control checklist](https://www.erpbahrain.com/compliance/employee-leave/erp-controls/) - [System configuration](https://www.erpbahrain.com/compliance/employee-leave/system-configuration/) - [FAQ](https://www.erpbahrain.com/compliance/employee-leave/faq/) Controls ## Controls and Evidence **Controls and evidence** | Control | Evidence to keep | | Leave rules are configured as your adviser confirms | Approval record, report or screenshot with date | | Balances update automatically | Approval record, report or screenshot with date | | Approvals are recorded | Approval record, report or screenshot with date | | Adjustments are logged | Approval record, report or screenshot with date | Configuration ## Settings to Review Settings to review during implementation. Exact names differ by platform. - Leave types and policies - Accrual rules - Approval workflow - Holiday calendar Setup ## How to Set Up Employee Leave in an ERP **Setup steps** | Step | What to do | | 1. Confirm | Confirm the current requirement for employee leave with the Ministry of Labour and your legal adviser | | 2. Map records | Map leave types, balances, requests and approvals to ERP fields | | 3. Configure | Set up leave types and policies, accrual rules, approval workflow | | 4. Add controls | Enable the controls above, with approvals and logging | | 5. Test | Run the scenarios below with sample data and compare with expected results | | 6. Document | Record settings, owners and the review rhythm, then train users | Testing ## Test Scenarios Before Go-Live **Test scenarios** | Scenario to test | Expected result | | Try to break this control: leave rules are configured as your adviser confirms | The system blocks or flags it, and the attempt is logged | | Try to break this control: balances update automatically | The system blocks or flags it, and the attempt is logged | | Try to break this control: approvals are recorded | The system blocks or flags it, and the attempt is logged | | Try to break this control: adjustments are logged | The system blocks or flags it, and the attempt is logged | | Run the process end to end with sample data | Reports reconcile with the transactions entered | Avoid ## Common Mistakes These are the mistakes we see most often when employee leave is configured in an ERP system. - Copying settings from another company without checking them - Allowing manual journals or edits after the period is closed - Leaving master data incomplete, then fixing it in reports - No named owner for reviewing exceptions each month - Not retesting after a system upgrade or rule change People ## Who Is Involved **Roles** | Role | Responsibility | | Finance or HR lead | Owns the process and reviews exceptions | | Accountant or adviser | Confirms the rule and signs off configuration | | System administrator | Maintains settings, roles and logs | | Internal or external auditor | Tests controls and evidence | Ongoing ## Review Rhythm **Suggested review rhythm** | When | Review | | Before go-live | Confirm requirements with the authority or your adviser; test with sample documents | | Monthly | Reconcile reports to filings or statements; review exceptions | | Quarterly | Review user access, approvals and changes made to settings | | After a rule change | Update configuration, retest and record the change | FAQ ## Compliance Questions - Where do these requirements come from? From official publications of the Ministry of Labour and your legal adviser, linked on this page - Who sets the rules for employee leave? The rules come from the Ministry of Labour and your legal adviser. Always check current official sources. - What records are involved in employee leave? Leave types, Balances, Requests and approvals, Public holidays. - Can BAHRAIN ERP configure our system once rules are confirmed? Yes. We configure and test the system against the requirements your adviser confirms. - What do the official sources say about employee leave in Bahrain? Law 36/2012 Art 58: workers with one year's service get at least 30 days' paid annual leave at 2.5 days per month; shorter service earns pro rata leave. Art 59: annual leave balances must be settled with pay at least every two years; on termination the worker is paid for any unused balance. Art 65: after three continuous months' service, sick leave per year is 15 days full pay, 20 days half pay and 20 days unpaid, certified by a government centre or employer-recognised clinic. - Which records does employee leave involve in an ERP? Leave types; Balances; Requests and approvals; Public holidays. - Which ERP controls support employee leave? Leave rules are configured as your adviser confirms; Balances update automatically; Approvals are recorded; Adjustments are logged. - Which ERP settings should be reviewed for employee leave? Leave types and policies; Accrual rules; Approval workflow; Holiday calendar. Have More Questions? Book A Free Consultation [ Talk to Us ](https://www.erpbahrain.com/contact.html) Or, Email us at contact@erpbahrain.com ## Related Pages - [Employee Leave guide](https://www.erpbahrain.com/compliance/employee-leave/) - [All compliance topics](https://www.erpbahrain.com/compliance/) - [Bahrain VAT Registration: Guide for ERP Configuration](https://www.erpbahrain.com/compliance/vat-registration/) - [Bahrain VAT Invoice Fields: Guide for ERP Configuration](https://www.erpbahrain.com/compliance/vat-invoice-fields/) - [Bahrain VAT Credit Notes: Guide for ERP Configuration](https://www.erpbahrain.com/compliance/vat-credit-notes/) - [Bahrain VAT Debit Notes: Guide for ERP Configuration](https://www.erpbahrain.com/compliance/vat-debit-notes/) - [Bahrain VAT Returns: Guide for ERP Configuration](https://www.erpbahrain.com/compliance/vat-returns/) - [Bahrain VAT Reconciliation: Guide for ERP Configuration](https://www.erpbahrain.com/compliance/vat-reconciliation/) - [Bahrain VAT Recordkeeping: Guide for ERP Configuration](https://www.erpbahrain.com/compliance/vat-recordkeeping/) - [Bahrain VAT Exempt Supplies: Guide for ERP Configuration](https://www.erpbahrain.com/compliance/vat-exempt-supplies/)