Labour Law / 4 min read

Termination and Arbitrary Dismissal: The Rights of Both Parties

Notice, dismissal with and without indemnity, arbitrary dismissal, and cases where an employee may leave work, under Articles 41 to 50.

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Ending employment correctly protects both parties. These are the rules:

Notice (Art. 44)

  • Monthly-paid workers: 3 months. Others: one month.
  • If there is no notice, you must pay wages for the notice period.
  • During your notice period, the employee gets one paid day per week to look for work.
  • Notice cannot be given while the employee is on leave (Art. 45).

Dismissal without indemnity (Art. 41(a))

  • A serious error that caused substantial loss.
  • Obtaining the job through fraud.
  • Disclosing secrets that caused a loss.

Dismissal with indemnity (Art. 41(b))

  • A final judgment for a crime involving honour or trust.
  • Breach of workplace conduct.
  • Assault.
  • Breach of obligations.
  • Repeatedly violating instructions.

Arbitrary dismissal (Arts. 41(c), 46)

Dismissal without a valid reason is not allowed, nor is dismissal because of union activity, claiming rights, sex, origin, or religion. If the court rules that the dismissal was arbitrary, the employee receives indemnity plus compensation for the harm.

The employee leaves with full indemnity (Art. 48)

  • The employer did not comply with the contract.
  • The employer assaulted the employee.
  • The work threatens the employee's health.
  • The employer deceived the employee at the time of contracting.
  • The employee was accused and found innocent.
  • The employer insulted the employee.

Fixed-term contract (Art. 47)

Anyone who ends it early without a right to do so must compensate the other party, up to the wages for the remaining period.

End-of-service certificate (Art. 54)

The employee is entitled to a certificate stating the period of service, the work performed, and the last salary, without any wording that could harm them.

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Frequently asked questions

How long is the notice period?

3 months for monthly-paid workers, and one month for others (Art. 44).

Can I give notice while the employee is on leave?

No (Art. 45).

What is arbitrary dismissal?

Dismissal without a valid reason or for prohibited reasons (Art. 46).

Sources

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