Kuwait Labor Law: What Governs Your Relationship with Your Employer

Kuwait Labor Law: What Governs Your Relationship with Your Employer

If you work in the private sector in Kuwait, whether Kuwaiti or expatriate, your relationship with your employer is governed by a clear legal text: the Private Sector Labor Law No. 6 of 2010 and its amendments. This article summarizes what you actually need to know, without unnecessary details.

The Short Answer

The basic Kuwait labor law for the private sector is Law No. 6 of 2010, and it applies to all workers employed by an employer in the private sector, except domestic servants (who have their own law No. 68 of 2015) and government employees (who are subject to civil service law and regulations). Kuwait labor law for the private sector sets working hours, leave, end-of-service gratuity, resignation, dismissal (termination), and procedures before the General Authority for Manpower (PAM) and the Labor Court. Any contract term that violates it and harms the worker is void.

What Does Private Sector Labor Law Cover?

Law No. 6 of 2010 regulates nearly everything in private employment relations. Employment contracts, probation periods, wages, daily and weekly working hours, overtime, annual and sick leave, maternity leave, work injuries, and termination of service.

Regular working hours are 8 hours daily or 48 hours weekly, reduced to 36 hours during Ramadan for Muslims (Article 65). Annual leave is 30 paid days after 9 months of service (Article 70). The minimum wage in the private sector is set by ministerial decree at 75 Kuwaiti dinars, though this figure is outdated in practice, it remains the statutory reference.

The administrative authority is the General Authority for Manpower (PAM), which receives worker complaints and attempts settlement before referral to court. The oil sector has special status: Kuwait's labor system exempts oil companies from some provisions of the general law, applying instead to regulations of the National Petroleum Company and Council of Ministers, which may be more generous compared to the general private sector labor law.

Kuwait Labor Law on Leave: What Do You Actually Deserve?

Many people confuse types of leave. The law clarifies them:

• Annual Leave: 30 paid days after 9 months of service (Article 70).
• Sick Leave: 15 days at full pay, then 10 days at three-quarters pay, then 10 at half pay, then 10 at quarter pay, then 30 unpaid (Article 69).
• Maternity Leave: 70 paid days for female workers (Article 24 of the Women Workers section).
• Hajj Leave: 21 paid days, once only during employment, provided 2 consecutive years of service have been completed.
• Public Holidays: 13 paid days annually by ministerial decree.

An employer cannot split annual leave except with written worker consent, and cannot defer it for more than two years. This is a point many employers overlook in silence.

End-of-Service Gratuity: The Calculation Everyone Asks About

This is covered by Articles 51 and 54. Entitlement varies between monthly salary and other payment methods, and between resignation and dismissal.

For a worker paid monthly: 15 days for each of the first five years of service, and one month for each year thereafter, with a maximum of one and a half years' salary. The calculation is based on the last salary including fixed allowances.

Attention: End-of-service gratuity is calculated on basic salary + fixed allowances only, not on variable bonuses or commissions unless the contract expressly provides otherwise.

Resignation Under Kuwait Labor Law: What Do You Lose and What Do You Gain?

This is one of the most frequently asked questions. The rule on resignation under the new Kuwait labor law (Law 6/2010) is clear but harsh if you do not understand it before signing a resignation letter.

If you resign voluntarily from an indefinite-term contract:

• Less than 3 years of service: no gratuity due.
• From 3 to 5 years: one-third of the gratuity.
• From 5 to 10 years: half the gratuity.
• More than 10 years: full gratuity.

In a fixed-term contract, resignation before its expiry may entitle the employer to compensation, and no gratuity is due unless you complete 5 years.

Notice period required from you: 3 months for monthly salary workers, and one month for others (Article 44). If you leave without notice, the employer may deduct the notice period amount from your final settlement. Think twice before sending an emotional resignation letter.

Kuwait Labor Law on Dismissal (Termination)

"Termination" in Kuwaiti law refers to dismissal from employment. The law distinguishes between lawful dismissal and wrongful dismissal.

Lawful dismissal without gratuity or notice is limited to nine cases under Article 41: assuming a false identity, committing an error resulting in serious loss, violating instructions despite written warning, absence without justification for more than 7 consecutive days or 20 scattered days in a year, disclosing trade secrets, conviction of a crime of moral turpitude, being under the influence of alcohol during work, assaulting the employer or coworkers, and repeated breach of obligations despite investigation.

Outside these nine cases, dismissal is deemed wrongful and entitles the worker to additional compensation of not less than 3 months' salary plus full gratuity and end-of-service gratuity and notice allowance (Article 46). Proving wrongfulness before the Labor Court requires documents, not merely words — letters, witnesses, attendance records.

The Disciplinary Code under Kuwait Labor Law is related to this section: Article 82 requires every employer employing 50 or more workers to establish a disciplinary code approved by the General Authority for Manpower and posted in a visible place. Any penalty imposed outside this code or without prior written investigation is void. This is where many employers fall short.

Sponsorship Transfer and Expatriate Conditions

For an expatriate worker, contract termination is practically tied to their residency. According to circulars issued by the General Authority for Manpower since amendments to the implementing regulations (referenced in the new 2020 Kuwait Labor Law for Expatriates and thereafter), a worker can transfer their sponsorship to another employer after 3 years from joining the first employer without the current employer's consent, or before that with consent.

The rule changes by repeated ministerial decrees. Consult the latest General Authority circular before taking any action. Those seeking Kuwait Labor Law 2021 PDF will find it on the General Authority for Manpower website and the Official Gazette (Kuwait Today) — the same version currently in force with successive amendments.

Where Do You Go If a Dispute Arises?

The formal procedure begins by filing a labor complaint with the Labor Relations Department at the General Authority for Manpower free of charge. The Authority calls both parties to attempt settlement within a short period.

If settlement fails, the complaint is referred to the Labor Division of the Court of First Instance within approximately two weeks, and the worker is exempted from court fees. Realistic trial duration? Six months to one year in the first instance, and may extend with appeal and cassation.

Do not delay. Claims for labor rights expire by limitation after one year from the date of contract termination (Article 149). This is a short period indeed, and many workers discover their rights have expired too late.

Other Laws That May Concern You

Kuwait Labor Law No. 6 of 2010 is not alone. There are parallel laws:

• Law No. 68 of 2015 on Domestic Workers — a completely different system, not under the General Authority for Manpower but under the Ministry of Interior.
• Decree-Law No. 15 of 1979 on Civil Service — for government employees.
• Social Insurance Law No. 61 of 1976 — applies to Kuwaitis only in the private sector.
• Residence Law No. 17 of 1959 and amendments — regulates an expatriate worker's residency and its connection to the employer.

A contract that violates labor law in part does not become entirely void; the offending provision is void and replaced by the legal text automatically. This is the principle of public order in Article 6 of the law.

References

[1] Law No. 6 of 2010 Concerning Labor in the Private Sector, published in the Official Gazette (Kuwait Today). [2] Law No. 68 of 2015 Concerning Domestic Workers. [3] Decisions of the Minister of Social Affairs and Labor implementing the provisions of Law 6/2010, General Authority for Manpower. [4] Social Insurance Law No. 61 of 1976 and amendments. [5] Decree-Law No. 17 of 1959 Concerning the Residence of Foreigners and amendments.

Do you need to review your situation? Consult a licensed lawyer in Kuwait.