Kuwait Labour Law chapter
Kuwait Labour Law Work contracts: Articles 27–54
Employment contracts, probation, penalties, termination and indemnity.
The individual employment contract is where most disputes start and end. This chapter covers the full life of a contract: writing it, probation, disciplinary rules, termination and end-of-service.
The key rules for employers:
- Contracts must be in writing, and the wage cannot be cut during the contract (Article 28).
- Probation is at most 100 working days, once per employer (Article 32).
- Penalties need an approved table and a written investigation first (Articles 35 to 37).
- Dismissal for cause has two levels, and only one removes end-of-service (Article 41).
- Indefinite contracts need three months' notice for monthly-paid staff (Article 44).
- End-of-service is 15 days' wage per year for the first five years, then a month per year, capped at 18 months (Article 51), with reductions on resignation (Article 53).
Use the end-of-service calculator to check any settlement before you pay it.
Articles 27–54
- Age to sign a work contract (Art. 27)Minimum age is 15.
- Written contract and pay protection (Art. 28)The contract is written in 3 copies, one filed with PAM. Salary cannot be reduced, and the employee cannot be assigned work outside the nature of the contract.
- Contracts in Arabic (Art. 29)The contract is in Arabic, and the Arabic text prevails.
- Fixed-term contract length (Art. 30)Fixed-term contracts run from 1 to 5 years and renew automatically.
- Automatic contract renewal (Art. 31)Fixed-term contracts run from 1 to 5 years and renew automatically.
- Probation period (Art. 32)Probation is a maximum of 100 working days, once with the same employer.
- Subcontracted work (Art. 33)In the event where the employer entrusts another employer with the performance of a task or part thereof under the…
- Housing and transport for remote sites (Art. 34)The employer, who contracts for the execution of a government project or who employs his workers in remote areas,…
- Penalties table (Art. 35)The regulation must be approved and posted, penalties must be progressive, only one penalty may be imposed for each violation, and there is a 15-day period.
- Ministry approval of penalties (Art. 36)The regulation must be approved and posted, penalties must be progressive, only one penalty may be imposed for each violation, and there is a 15-day period.
- Investigation before penalty (Art. 37)No penalty without written notice and hearing the employee's account.
- Pay deduction limit for penalties (Art. 38)Deductions cannot exceed 5 days per month.
- Suspension during investigation (Art. 39)Suspension for investigation is a maximum of 10 days.
- Penalty deductions fund (Art. 40)Deducted amounts go to a fund for the benefit of workers.
- Dismissal without notice (Art. 41)Dismissal (a) without indemnity, (b) with indemnity, and (c) challenging arbitrary dismissal.
- Dismissal for absence (Art. 42)Absence for 7 consecutive days or 20 separate days.
- Worker detained or imprisoned (Art. 43)Imprisonment following a complaint by the employer.
- Notice period (Art. 44)Notice is 3 months for monthly-paid workers and one month for others, with one paid day per week to look for work.
- No termination during leave (Art. 45)No notice during leave.
- Unfair dismissal (Art. 46)No dismissal without a reason or for prohibited reasons.
- Wrongful end of fixed-term contract (Art. 47)Early termination of a fixed-term contract: compensation is capped at the wages for the remaining period.
- Worker quits with full benefits (Art. 48)Cases where the worker leaves with indemnity.
- Death or disability of worker (Art. 49)Death, incapacity, bankruptcy, closure, and transfer of the establishment.
- Contract ends: bankruptcy or closure (Art. 50)Death, incapacity, bankruptcy, closure, and transfer of the establishment.
- End-of-service indemnity (Art. 51)Monthly-paid employees receive 15 days' wage for each of the first 5 years, then 1 month's wage for each subsequent year, capped at 18 months' wage. Daily-, weekly-, hourly- and piece-rate employees receive 10 days for each of the first 5 years, then 15 days for each subsequent year, capped at 1 year's wage. Partial years are proportionate. Social-security contributions must not be deducted (2017 amendment).
- Cases of full indemnity (Art. 52)Full indemnity cases include employer termination (subject to the Article 41(a) forfeiture grounds), expiry of a fixed-term contract without renewal, cases under Articles 48–50, and a female employee ending the contract within 1 year of marriage.
- Indemnity when the worker resigns (Art. 53)For resignation from an indefinite contract: under 3 years, no Article 53 entitlement; 3 to under 5 years, one half; 5 to under 10 years, two thirds; 10 years or more, full EOS.
- End-of-service certificate (Art. 54)End-of-service certificate.
This text follows PAM's January 2025 consolidated English edition; this local copy was not independently checked and is not legal advice.
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