Labour Law / 4 min read

Penalty Regulations: How to Draft Them Correctly

Requirements for penalty regulations under Articles 35 to 40: PAM approval, progressive penalties, investigation, and limits on salary deductions.

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Clear penalty regulations make treatment fair for everyone and make your decisions easier. Here are the requirements:

1. Approved and posted

They must be approved by PAM before being applied (Art. 36) and posted in a visible place (Art. 35).

2. Five rules for drafting them (Art. 35)

  • Define each violation and its penalty.
  • Penalties must be progressive.
  • Only one penalty for each violation.
  • No penalty for something discovered more than 15 days ago.
  • A violation outside the workplace is not penalised unless it is related to work.

3. Before any penalty (Art. 37)

  • Give the employee written notice.
  • Hear the employee's account and defence.
  • Keep a record in the employee's file.
  • Notify the employee in writing of the penalty and its reason.

4. Deduction limits

  • No more than 5 days per month; the remainder carries over to the following months (Art. 38).
  • Suspension for investigation is a maximum of 10 days. If the employee is cleared, their wages are restored (Art. 39).
  • Deducted amounts go to a fund for the benefit of workers, not the employer (Art. 40).
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Frequently asked questions

Can I deduct wages as a penalty?

Yes, up to a maximum of 5 days per month (Art. 38).

Is an investigation required?

Yes, written notice and a hearing (Art. 37).

Where does the deducted money go?

To a fund for the benefit of workers (Art. 40).

Sources

  1. PAM Labour Law page
  2. English Kuwait Labour Law text
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