Private Sector Kuwait Labor Law Reader

Friendly Version
Although this is not the detailed version of the Kuwait Labor Law the
information listed there is still imperative to those who would like to work in
Kuwait. But there is a detailed version of the Kuwait Labor Law as well, the link is
provided at the buttom.
The Private Sector Kuwait Labor Law is divided into six sections. Click on the
sections to view them.

Section 1
Private Sector Labor Law
Ministry of Social Affairs and Labor (MSA&L) enforces the private sectors labor
regulations. The law applies to all private sectors except for the following:
domestic servants, workers on temporary contractors and workers working in less
than six months. The private sector labor law also does not apply to employees
whose employers head office is located outside Kuwait unless the company has a
Kuwait branch office in which case Kuwait law applies. If the head office is located
outside Kuwait and does not have a branch in Kuwait, the private sector law of the
country where the head office is located will govern the immigrants working in
Kuwait.

Contract of Employment
The employment contract
contains the employees terms of service. A fixed time or indefinite terms of
service may be given by the employer to its employees. Terms of service that
does not exceed five years is considered a fixed time.
Private Sector Kuwait Labor Law indicates the minimum limit which terms of
service may not fall. If a part of an employees contract gives him less benefit
than his right under the law, he is at liberty to the minimum indicated by the law
in the particular term.
Any employment contract may be verbal or in writing. In both cases, a contract
must give you an idea about the description of the job, remuneration payable,
date of appointment and the service length ( if fixed).
In case of dispute involving a verbal contract, either side can use circumstantial
evidence to prove the agreed verbal agreement. Arabic is the language used for

written contracts. A contract translated into another language may be attached

but when resolving disputes, the Arabic version will be considered in a court of
law.
An employee can be hired under probation status for a maximum of 100 days.
This can only be applied by the same employer once for each of their workers.
Contracts that are still under the probation days can be terminated without prior
notice. An accumulated compensation will be given to the employee.

Remuneration & Deductions

Basic pay, commissions, obligatory bonuses, incentives, gratuities from the third
parties and employee benefits such as housing allowances is included in the
remuneration. Allowances on account of expenses and profit shares are not
included in the remuneration. If the employees contract or the firms by-laws
include bonus payment or if the same amount has been paid regularly every year,
the company is obliged to pay the workers bonus.
The content of the remuneration is very significant. In case of injury, the amount
included in the remuneration is used to compute the terminal compensation or
indemnity. The payment may vary based on the payment type of the worker. If an
employees salary is paid on based on number of hours worked, the company will
use the last salary payable. If an employees salary is based on the piece-worked,
the company will compute the average wage of the amount payable to the
employee for the last three months.

Payments
No minimum wage is stated in the private sector labor law. A monthly salary
should be paid for hired employees. Salaries can be given every two weeks for
piece-workers and workers who are under the hourly and weekly wages. If a
subcontractor failed to pay their workers salaries, each worker may demand
payment from their employers superior contract. This is true for cases when the
employers superior did not pay for the work done by the subcontracted
employees. Payment for employees salaries and termination benefits is given
priority before an employers other creditors when an employer declares
bankruptcy.

Section 2
Deductions

Employer cannot compel their employees to purchase products they manufacture

or produce. If a worker is indebted to his employer, a deduction to his salary can
be made to pay off this debt but the deduction must not exceed 10% of his salary
and interest may not be charged to the worker. When a third party debt is
attached to an employers salary, only 25% of his salary may be deducted.

Working Hours
Eight hours a day and 48 hours per week is the required working hours for an
adult worker. An employee must be permitted to have a one hour rest or break
every after five consecutive hours of work. This one hour rest or break is not
included in the computation of working hours. MSA&L can modify either increase
or decrease these standard working hours in case to case basis. Employees
working in a hotel are one example of those who have either less or more than
the required working hour.

Holidays
An employee has the liberty to enjoy one whole day off per week. This day off is
without pay and is traditionally scheduled during Fridays. But this is not a legal
requirement in Kuwait.
There are eight holidays a year where an employee is entitled to enjoy with full
payment. These holidays are as follows:
One day on Hijri New Years Day
One day on Ascension Day
Two days for Eid Al-fitr
Two days for Eid Al-adha
One day for the prophet Mohammed Birthday (PBUH)
One day for National Day
There is another holiday which is the Liberation Day but for private sector it is not
yet a statutory holiday.

Annual Leave

Employees are entitled to take advantage 14 whole days leave every year for
completing one whole year of service, and 21 days of leave every year after more
than five continuous years of service. These annual leave does not include sick
leave and official holidays. The employer is given the power to schedule the date
of the employers leave.
The employees holiday pay must be given before he goes on leave. In calculating
the amount due, the employees last salary payable before the holidays must be
used. In case of employees termination of service, he is entitled to a cash
payment in lieu of accumulated leave. This is irrespective of the number of years
of leave due. Payment for the accumulated leave must be computed on the basis
of the last salary payable on termination date.

Section 3
Sick Leave
An employee is entitled to a sick leave provided they have a satisfactory medical
report for:
The first six days of illness on full pay
The next six days on three-quarters pay
The next six days on half pay
The next six days on quarter pay
The next six days without pay
This entitlement is the total entitlement in one year and not per period of
sickness.

Overtime
An employer may require his employees to render work overtime provided that it
is needed and it has a written agreement or order. Below is the list of the overtime
rates of pay:
1.25 times the basic hourly rate for excess hours worked on regular working
days

 1.50 times the basic hourly rate for all hours worked on the weekly day off
Twice the basic hourly rate for all hours worked on public holidays
Overtime is only limited to 2 hours a day, 6 hours per week and 180 hours a year
and should not exceed 90 days in a year. Every employee has the right to refuse
to render overtime work.

Female Employees
A female employee assigned to work a mans job must be given equal
compensation. Female employees have the same standard working hours as male
employees but they are not allowed to work between 7pm to 6am. However
female employees working for clinics, pharmacies, hotels, nursery schools, homes
for the handicapped, airlines, tourist offices, theaters, and entertainment
industries are allowed to work beyond the standard working hours. Female
workers working in cooperative societies, public utilities, beauty salons, tailoring
shops, banks and offices may work during night time but only until midnight.
MSA&L may extend night-time working hours during Ramadan, on Eids, and public
holidays. Transportation must be arranged by the employers for female
employees working at night.

Maternity Leave
A pregnant woman is privileged to have a maximum of 30 days maternity leave
before the date of delivery and 40 days after delivery. A pregnant woman can also
be absent from work up to 100 days, consecutive or not, after the maternity leave
but without pay. A medical certificate stating that the person is not yet fit to work
needs to be presented as basis for the additional absences incurred after the
maternity leave. This maternity leave will be forfeited on day-per-day basis until
her annual leave are all taken.

Section 4
Termination Benefits
A lump sum payment also known as termination compensation is given to
employees when the employment is terminated.

Calculation of Termination Indemnity

For those who work within 5 years, for each year completed by workers they are
entitled to a termination indemnity equivalent to 15 days compensation, and a 30
days compensation for each year completed for workers that worked for more
than 5 years, but it is limited to one and a half years remigration.
For employees who are paid based on piece-rate, hourly, daily or weekly basis, a
termination indemnity of 10 days compensation for each completed years of
service for the first 5 years and 15 days salary payment for each complete year
more than 5 years. This is limited to one years salary in which both cases of part
years, pro-rated amount is calculated

Restrictions for Termination Indemnity

An employee who was not able to complete his five years of service is not entitled
to any indemnity once he decides to resign. Any employee who resigns after
working for five years or more in the company is given 50% indemnity. For
employees who have reached their retirement age, which were disabled at work
or died are given full indemnity. A full indemnity is also given to women
employees who married while she is an employee and women employees who
renders resignation within 6 months of marriage.

Disciplinary Notices & penalties

All related regulations for employees should be issued in a form of circulars or
bulletins. These regulations must also be written in Arabic. Employees who have
committed offense may be penalized if the regulation specifies that the offensive
act is punishable. All penalties should be progressive but are limited as follows:
Each act of misbehavior is equivalent to one punishment
If the act of misbehavior is committed after working hours, outside the
workplace and is not related to work, no penalty will be imposed.
If the penalty is salary deduction, it should not exceed 5 days per month. If the
penalty exceeds the total amount of the employees 5 days salary then another 5
days deduction will be imposed on his next salary.
If the penalty is suspension from duty, it should not exceed 10 days per month
If the act of misbehavior was proven after 15 days, a penalty cannot be imposed

Termination

Employment contract will automatically expire at the end of the fixed period
stated in the contract. If the employer renews the contract and the employee is
willing to work for another period then same conditions will be applied.
If the employment does not state any conditions regarding termination of contract
before the end of the fixed period, either party can terminate the contract. The
party that terminates the contract must compensate the other. If the employer
terminates the contract, the employee will receive compensation limited to his
wage earned from the termination day until the end of the contract. If the
employee resigns from his work before the end of his contract, employers
compensation is limited to his actual loss.
If an employee has an employment contract with unlimited period, termination
can be made by informing the other party in writing. The notification should be
given 15 days before the termination. In lieu of notice, either party may pay the
other an amount equivalent to 15 to 7 day salary.
If the employee commits any of the following:
Doing any wrongful act that results to a serious damages or loss to the employer
Continuously disobeys his employers instructions
Disobeys safety instructions at work given by the employer on each location
Has been absent of more than 7 consecutive days without any reason
Has been convicted of a crime affecting honor, honesty and morality
Commits an act against public ethics in the workplace
Assaults a fellow employee, employer or his agent at work or an account of work
Failure to perform his obligations under the terms of his contract or the labor law
Commits fraudulent activities to obtain work
Reveals secrets relating to his employment
An employer has the right to terminate an employee without prior notice and
without paying the employees indemnity and compensation.

If an employer commits any of the following:

Fails to abide by the provisions stated on the employees contract or the labor
law
Assaults his employee
Continuously endangers his employees health
An employee has the right to end his contract before it expires and without prior
notice, collect his indemnity and no payment for the compensation will be applied.
If an employee dies, fails to perform his work or used all his sick leave, his
contract will automatically be terminated. Indemnity will be paid for all these
cases.
An employees contract is also automatically terminated if his firm or company:
Goes into liquidation
Merges with another firm or company
Experienced lockout
Is sold or inherited
The new owner has the right to indemnity while the employees may continue to
serve the new owner while reserving his rights to indemnity for his previous
service.

Section 5
Health & Safety
Employees should be protected from physical hazards and occupational diseases
at work. For this reason, employers are obliged to take necessary precautions to
protect their employees welfare.
Employers are also required to do the following:
ensure the work area is clean and well ventilated, sufficiently lit and in good
sanitary condition

 supply first aids kits in visible areas and within reach of the employees. These
kits should contain medicines, antiseptics and bandages.
MSA&L issued resolutions that contain all the detailed standards for these
matters. MSA&L consulted the Ministry of the Public Health for these resolutions.
An appropriate transport should be provided by the employer to his employees
working in areas not reached by public transport. An appropriate accommodation
with drinkable water and means to obtain supplies should also be provided by the
employer if his employees are working in areas away from populated areas.

Accident
If injuries are acquired by an employee during his working hours or his injuries are
related to his work, the employer should report the incident to the local police
stations and to MSA&L. The employee that incurred injuries has the right to
treatment in any government hospitals or private clinic. This decision is based on
what the employer thinks is suitable and the expenses will also be shouldered by
the employer. An employee must secure a doctors report that states the period of
treatment required, any disability caused by the accident, and an employees
fitness to continue working after the treatment.
A full payment for the first six months will be provided to the injured employee
during his treatment. Half payment will provided after six months until the
employee dies, recovers or is proven to be permanently disabled.

Compensation
An employee is entitled to a compensation for injuries related to work. The
employee does not have to prove that the employee was at fault as long as the
employee is not guilty of gross malpractice or injured himself intentionally.
An employees family will have a right to compensation if the employees injuries
have caused him more than 25% disability or dies. Even if the employee is guilty
of gross malpractice, the family will still continue to receive the compensation.
The amount of the compensation is based on the severity of the injury. When the
injury results to dead, the compensation is equivalent to the total amount of 1500
days salary or more. The current legal blood money is KD 10,000. For employees
with permanent disability, a compensation equivalent to the total amount of 2000
days salary or more will be given. One and one-third times the legal blood money
will also be provided.

A percentage of what would be due for a total permanent disability is the

calculated compensation for partial permanent disability.

Trade Unions and Dispute Resolutions

Trade Unions formation and activities are strictly controlled. Only one union is
allowed to be established for workers in any firm or profession. An employee is not
allowed to join more than one union.
To be a union member, an employee must be at least 18 years of age and have a
certificate of good conduct from a complete authority. For immigrants, a valid
work permit and a Kuwait work experience for 5 consecutive years is required to
become a union member.
Kuwaitis are the only persons who have the right to vote in the unions general
assembly. Being elected in the executive board of a union is also restricted to
Kuwaitis. Immigrants can only have the right delegated one of themselves as
representatives in order to share their views before the executive board.

Collective Labor Disputes

A mandatory procedure should be followed if any dispute arises between the
employer and all or some of his employees concerning work related terms. These
mandatory procedures are as follow:
direct negotiation between employer and employees must take place. Once
agreement is reached, it must be registered with the MSA&L within seven days
If there is no agreement, MSA&L will be requested by both parties to intervene
If the dispute is not settled within 15 days with the intervention of MSA&L, the
dispute must be forwarded to the Labor Disputes Arbitration Committee in the
courts. Once it reaches the court, the employer or his representative and the
employees representative may appear before the committee. Each party is
allowed to have a maximum of three representatives each. Any decision made by
the committee is final and binding.

Section 6
Individual Labor Disputes

In cases of individual labor disputes, the private sector labor law has laid down
specific procedures to be followed for an individual to pursue a claim against their
employers.
Any individual labor dispute should be submitted to MSA&L before the start of a
law suit. The two parties will be called by the Ministry to have an amicable
settlement. The Ministry will give both parties two weeks to reach a settlement. If
no settlement is reached, the dispute will be referred to the Labor Court. The
forwarded dispute will include the summary to the matter, evidences presented
by both parties together with the Ministrys own comments. The court will
schedule a fix date for the hearing within three days and both parties will be
notified.
The case will be heard in a summary manner. After the employment was
terminated, a time limit of one year is given for filing cases. There is an exemption
from the usual court fees for labour cases but if the employee loses then the court
may order him to pay anominal amount on account of costs.

Expected Changes
All regulations under the private sector labor law are issued at regular intervals. It
becomes effective and binding once published in the official gazette, Al-Kuwait
Alyoum.
MSA&L finalized a new labor law draft last July 1997. This includes changes in
terminal indemnity, annual holidays, and sick leave. The number of sick leave was
increased and the number of public holidays was extended to 12 Haj leave,
compassionate leave and Idda leave for new widows. All these leaves are fully
paid.
Salary payment is expected to be made mandatory within seven days of their due
date and a new minimum wage is expected to be included in the new labor law.
MSA&L announced in November 1999 that a revised draft law will be submitted to
the Council of Ministers before the end of 1999 for approval.

Disputes and Civil Rights

Immigrants who experience difficulty in acquiring their work-related legal rights or
other disputes can consult the Labor Departments at the Ministry of Social Affairs
and Labor. MSA&L has five labor departments. One of these departments handles
labor disputes. Employees who wanted to file dispute should be directed to this
department. The employee should provide the necessary documents that support

the claim. The department then offer advice with regards to the case and follow
the procedures mentioned on the previous pages.

Kuwait Trade Union Federation

The Kuwait Trade Union Federation is committed to prevent the abuse of
immigrant or expatriate laborers. The Federation provides free of charge legal
advices to laborers and assists them to take action against their employers.
Human Rights Committee (HRC) at the National Assembly handles complaints of
any form and matter. Any complaints can be sent to the HRC through letter, fax,
and phone call or by visiting the National Assembly building. If a person does not
want to visit the National Assembly, he can call the Committee directly to discuss
his concerns.
HRC focuses on immigrants who have a hard time in obtaining their passports
from their employers. Immigrants are required to send a signed letter written in
Arabic, stating the facts of their case, their civil ID, passport number, country of
origin and the name of their employer. They can send it to the Committee by fax
and will be treated in strictest confidence.

New Labor Law 2010

On the 21st of February 2010, a new hope was given to the emigrants working in
Kuwait.
The new Kuwait Labor Law was already published in Kuwaits official gazette.
The published labor law contains the updated provisions and amendments that
are proven beneficial and appropriate for employees and their employers. Salary,
public holidays, paid leave, sick leave and end of service payments are some of
the amended provisions that was approved by the National Assembly last 2009
and was then sent to Kuwait Cabinet. After Kuwait Cabinets approval, it was then
sent to His Highness the Amir for endorsement. Unfortunately, domestic workers
in Kuwait will not come under this rule.

On Salary:
The new labor law mandates that before the 7th of each month, the salaries of all
employees should be sent to the banks. All employees are also entitled to paid
leave on all official holidays, a day off every week, and an annual leave of up to
30 days even during the first year of work. Article 17 grants 21 days paid Hajj
pilgrimage leave to employees who have spent two consecutive years in service

under the same employer and have never previously performed the Hajj
pilgrimage. Employees are also granted leave on all the 13 days of public
holidays. If workers are asked to work during these public holidays, a bonus of
half-a-days salary must be given in addition to a full days pay.

On Compensations:
Based on Article 51 of the labor law, a worker will get complete end of service
compensation at the end of the contract period. This payment is equivalent to 10
days pay for the first five years. It will then increase to 15 days pay from the sixth
year. The employee is entitled to full indemnity if the contract is terminated by
the employer, or the employment contract ends without being renewed. A female
employee can get full indemnity if she terminates the contract from her side due
to marriage within a year from her marriage date.
Based on Article 53 of the labor law, an employee who resigns from his work still
deserves part of his compensation. Half months salary for every year of service is
given as compensation for those who worked for more than three years but less
than five years. Seventy-five percent of the monthly salary for every year is given
to employees who worked for more than five years but less than 10 years of
service. Lastly all employees who served for more than 10 years are entitled to
get a full months salary as compensation for every year of service.

On Working Hours
With regards to working hours, the new labor law specifies that women are not
allowed to work beyond 10:00 pm and before 7:00 am with an exception for those
who worked in treatment homes or institutions. Women are also prohibited to
work on hazardous jobs. The labor law also stipulates that employees are only
allowed to work for 8 hours a day which includes a long break of up to one hour.
Workers should work for six days per week and if they work on Friday, they are
granted a day and halfs pay and a day off during the following week not including
the following Friday.

On Leave:
Regarding employee leave benefits, a worker is entitled to a sick leave for 40
days. This includes full pay for the first 10 days, 75 percent pay for the next 10
days, 50 percent pay for the following 10 days and 25 percent pay for the last 10
days. If an employee has already consumed his 40 days sick leave, he or she is
still entitled up to 30 days of unpaid sick leave.

On Women and Children

Under the new labor law, employment of a minor or an individual below 15 years
of age is prohibited. The labor law also states that women who are pregnant are
now allowed to take a paid leave. This paid leave can last until 70 days provided
that they will give birth within that period. New mothers can also request for an
unpaid leave of up to four months. The law prohibits employers from terminating
female workers contracts during this period or if they are sick due to giving birth.
When women go back to work after giving birth, the law states that she is granted
2 hours break from the normal working hours to nurse her baby. Employers who
have 50 women or 200 men working in their establishments are required to set up
a day care center for children below four years of age.

On Health Benefits
Accidents are very common in work places tht is why the new labor law includes
some health benefits like granting full salaries for the whole recovering period of
an employee who meet with accidents while working, on their way to work and
from work provided that the period of recovery is certified by a physician. If the
recovery period will take more than six months, the employer will have to pay
only half of the salary until the employee recuperates from his injuries, dies or
his/her handicap is confirmed.

On Termination
When it comes to termination of contract, the new labor law declares that a three
month notice must be given with proper reason stated by the employer before
breaking an employees contract. An employer is not allowed to terminate
workers that are currently on leave. For employees, the law declares that also a
three-month notice should be given before a worker resigns from his current
position.