The following information and procedure is issued for the guidance of all Ministers:

1. On 1st October, 1977 the Government will implement a new annual leave system for expatriate employees of the Government of the State of Bahrain. In brief, the rate of earning annual leave will be changed from 42 days each year, earned at the rate of 3½ days each month, to 36 days each year which will be earned at the rate of 3 days each month. While this policy change appears to reduce a portion of the leave benefit, in actual fact it will produce additional advantages to all Employees affected by the change.

2. Under the old system, absence on leave during a normal non-work day (Friday) or an official holiday has been counted as a calendar day of leave. The new system will charge leave for approved absence on normal work days. Normal non-work days and holidays will not be charged to leave. Therefore, an employee who works a normal six-day week who is absent on approved leave for three weeks, will be charged 18 days leave rather than 21 days as charged under the present scheme.
   Moreover, if two of those days during his period of leave were designated as official holidays, he would receive normal pay for these days and would not be charge leave.

3. There are other benefits which accrue under the new system. Leave can be used for shorter periods at any time Employees supervisors approval of their absence rather than being required to take leave at one time during a specified period. Employees begin to accrue leave at the time they are employed without the one-year waiting period before they are permitted to take leave or receive compensation for their accumulated leave. As a result of these improvments, a more uniform and equitable leave policy will be applied to all.

4. The new leave plan will be implemented as follows: -
   1. Effective 1st October, 1977 employees will earn leave at the rate of 36 days each year and may accumulate a maximum of 72 days which becomes the leave accumulation ceiling. On 30th September, 1978, leave records will be reviewed and any accumulated leave in excess of the 72 day ceiling will be paid in a lump sum.

   2. Employees will be given an opportunity and encouraged to use their leave in order to reduce their annual leave balance and maintain it below the maximum accumulation ceiling. An employee will not be denied leave if refusal will cause his earned leave ceiling to be exceeded.

   3. Leave earned and used through 30th September, 1977 will be credited and charged on the basis of the current system. No retroactive change will made in leave taken prior to that date. Additionally, any earned leave period which commenced prior to 1st October, 1977 will be trended under the former system even though the period of leave extends beyond 1st October, l977.

   4. Beginning 1st October, 1977 the leave balances to the credit of all employees effected by this new policy will be computed using a special formula. For case in computing the new leave balance, the current leave balance will be divided by 3.5 and the resulting total then multiplied by 3. For this one time computation, any fractional amount will be rounded to full days. The total derived figure becomes the new adjusted leave balance which will be used as the basis for all subsequent credits or changes to earned leave.

5. The provisions of this circular will be incorporated into a more detailed Civil Service Regulation regarding leave to be issued by the Civil Bureau at early date.

JAWAD SALIM AL-ARAYED
MINISTER OF STATE FOR CABINET AFFAIRS