In the private sector, the Kuwait Labour Law governs employment relations. A way to ensure that workers receive fair treatment. The law protects them and ensures their rights are not violated.
This guide outlines the key provisions and updates. The ultimate guide for those working in a private company in Kuwait. It helps in protecting your rights under the Kuwait Labour Law.
Note that, certain workers are excluded from these protections. These include domestic workers, like maids, gardeners, farm workers, and agricultural workers. Also, casual workers, government department employees, armed forces members, police, or security forces are part of it. The rights are determined by the employment contract terms. In case, you fall into these categories. They can be enforced through a civil court.
For instance, this guide explores:
- Private sector worker’s labor laws
- Pandemic-related development in Kuwait
- Introductory and Concluding parts
- How Payroll Middle can help in this regard
Let’s take a closer look at the main provisions of Kuwait’s Labour Law. The law applies to private-sector workers.
Section I: Labour Laws for Private Sector Workers
1. Recruitment Fees: Are Employers Allowed to Charge Them?
Recruitment agencies are not allowed to charge fees under the Kuwait Labour Law. Employers cannot deduct any amount from your salary. However, they may deduct except in the following cases:
- Advances: If you take an advance, the deduction should not exceed 10% of your salary and must be interest-free.
- Penalties: Employers may deduct for penalties imposed due to rule violations, but no other deductions (like medical insurance or work permits) are allowed.
2. Employer Confiscation of Passport
Employers cannot confiscate employees’ passports. This ensures that employees are not coerced or restricted in their movement.
3. Employment Contract Requirements
Kuwait’s employment contracts must be signed between both parties, the employer and the worker. However, this can be done before the job is accepted. These contracts may be verbal. It’s best to have a written agreement. The contract must include:
- Job description
- Wage details
- Date of appointment
- Duration of employment
Circumstantial evidence may be used in the case of disputes. Especially those involving verbal contracts. Lawyers must draft written contracts in Arabic, even if they are translated into another language. The Arabic version of the contract will be considered the binding version in court.
4. Permits for Working in Kuwait
Certain permits are required before you start working in Kuwait:
- Medical Examination: Workers must undergo a medical examination after arriving. The worker will be sent back to their home country if found unfit.
- Medical Insurance: Employers must provide a health card and medical insurance. Both must be valid for the contract duration.
- Residence Permit: Employer must procure a residence permit and a civil ID card upon arrival. It legally permits you to work in Kuwait.
Also read our blog post on WPS payroll cards. We have provide detailed insight on this topic, Read other similar topics here!
5. Minimum Wage for Migrant Workers
Kuwait’s migrant workers are guaranteed a minimum wage of KWD 75. This equals to (approximately US$250 per month. It provides a baseline for remuneration for those in the private sector.
6. Legal Working Hours
The standard working hours for an adult worker are:
- Per day 8 hours and per week 48 hours
- Workers must have a 1-hour rest break. They can take after 5 consecutive hours of work. The time is not counted as part of the working hours.
- Working hours are reduced to 36 hours per week during Ramadan.
- Outdoor work is prohibited between 11 a.m. and 4 p.m. during the summer months. Oil and gas workers are excluded from the list
Sometimes, employers require workers to work on their rest day. Workers must be compensated at 150% of their daily wage in such cases. There can be another mutually agreed compensation decided.
7. Sick Leave Entitlements
Employees are entitled to a sick leave based on the following schedule:
- First 15 days: Full pay
- Next 10 days: 75% pay
- Next 10 days: 50% pay
- Next 10 days: 25% pay
- Additional 30 days: Unpaid leave
To avail of sick leave, a worker must submit a medical report from the employer’s doctor or a government health center doctor.
8. Overtime Wages
Employers may ask employees to work overtime with a written agreement. The overtime pay structure is as follows:
- 125% of regular pay for hours worked beyond normal working hours on regular days.
- 150% for overtime on a weekly rest day.
- Twice the basic hourly rate for work on public holidays.
Overtime is restricted to 2 hours per day, 6 hours per week, and 180 hours annually. Workers also have the right to refuse overtime work.
9. Frequency of Wage Payments
Salaries must be paid on a fortnightly or monthly basis via the Wage Protection System (WPS) directly into the employee’s accredited bank account.
Check out how payroll outsourcing in Dubai helps businesses. Explore other relevant topics here
10. Annual Paid Leave
Employees are entitled to 30 days of paid annual leave. They can avail after the completion of one service year. Employees earn annual leave after nine months of continuous employment in the first year. They can carry forward any unused leave days. However, they must not exceed two years.
Workers are granted the following 8 public holidays with full pay:
- Hijri New Year’s Day
- Ascension Day
- Eid Al-Fitr (2 days)
- Eid Al-Adha (2 days)
- Prophet Muhammad’s Birthday (PBUH)
- National Day
11. End-of-Service Gratuity
At the end of employment, employees are entitled to a gratuity:
For hourly, daily, weekly, or piecemeal workers:
10 days of wages for each year of service for the first 5 years. Remaining years are capped at one year’s wages for 15 days.
For monthly salaried workers:
15 days of wages per year for the first 5 years. Moreover, 1 month’s salary for the remaining years, capped at 18 months’ wages.
12. Joining a Trade Union
Foreign workers with valid work permits and more than 5 years of experience in Kuwait can join trade unions. However, foreign workers cannot vote in union general assemblies. Only Kuwaiti nationals are allowed to vote.
Discover our detailed guide on payroll provider companies in UAE. Check out other similar ones on Payroll Middle East’s website!
13. Lodging a Complaint Against an Employer
Workers can file complaints with the (PAM). This may happen in case of a dispute. In this scenario, they can complain to the Public Authority of Staff. If mediation fails, the case is referred to the Civil Court (Labour Circuit), which deals with labour-related disputes. Court fees are waived for such cases.
14. Changing Employers
Workers can change jobs under certain conditions:
- Private sector employees working on government contracts can transfer only after the contract ends or with employer approval.
- Employees in free trade zones or sectors like agriculture and fishing may transfer with the employer’s approval at any time.
- Other workers: After 1 year of continuous employment, workers may transfer to a new employer with approval.
- Workers wishing to transfer without permission can do so after 3 years but must file a complaint with the PAM’s Labour Relations Department.
Section II: COVID-19 Related Developments in Kuwait
Kuwait Labour Law has also seen adjustments due to the COVID-19 pandemic. Every employee and employer should be aware of it. Here are some key developments:
Amnesty for Migrant Workers:
An amnesty was offered to migrant workers in April 2020. Those who overstayed their visas. It allows them to leave Kuwait without penalties. The facility also grants them the ability to re-enter the country in the future.
Absconding Cases:
The PAM annulled all absconding cases filed since the onset of the pandemic.
Annual Leave during the Pandemic:
During the pandemic, employers cannot force workers to take annual leave. If requested by the employee then employers may grant unpaid leave. Employers cannot mandate unpaid leave without the employee’s consent.
Final Words
In conclusion, For private sector workers, Kuwait Labour Law offers extensive protection. This may include migrant employees. Kuwaiti workers should be aware of their rights and protections under the law. With the law evolves to address changing workplace dynamics and situations like the COVID-19 pandemic, awareness is necessary. The provisions for wages and working hours understanding are essential. They must know about their overtime, sick leave, and other benefits. It ensures that employees are treated fairly and equitably.
Employees pass on any challenges that arise during their employment in Kuwait. This can be only achieved by staying informed and proactive. The Kuwait Labour Law provides a clear framework for addressing disputes. Ultimately, it safeguards worker interests. An essential aspect for both employers and employees to adhere to the regulations.
Partner with Payroll Middle East: Get Assistance with Kuwait Labor Laws
To understand Kuwait’s labor laws, Payroll Middle East is the way to connect. You’ll get the latest updates on employment laws that can set you away from any obstacle. Failing to comply with laws and incomplete knowledge often seems a disaster. Especially if you move to another country for employment. Pack yourself with the necessary knowledge whether you’re an employee or an employer.
Payroll Middle East has all the necessary tools and resources to help you the best. With years of experience and professional expertise stand us apart. Reach out to us today and learn how we can help!
1. Am I entitled to paid annual leave in Kuwait?
Kuwaiti workers are entitled to 30 days of paid annual leave. They can avail annual leaves after completing one year of continuous service. Employees must work for at least 9 months in the first year of employment. After this, they can take leave. However, any unused leave can be accumulated. It must not exceed a total of two years.
2. Can my employer deduct any amounts from my salary?
Employers can only make deductions from your salary under specific circumstances:
- Advances: If you have taken an advance, deductions can be made, but it must not exceed 10% of your salary and must be interest-free.
- Penalties: Employers can also impose penalties for breaking workplace rules, but they cannot deduct amounts for things like medical insurance or work permit costs.
3. What happens if my employer asks me to work overtime?
Employers can require employees to work overtime, but the following conditions apply:
- 125% of the regular hourly rate for overtime worked on regular days.
- 150% of the regular hourly rate for overtime worked on a weekly rest day.
- On public holidays, twice the hourly rate for overtime. Limited to 2 hours per day, 6 hours per week, and 180 hours per year. Workers also have the right to refuse overtime work.
4. Can I change my employer in Kuwait?
Yes, you can change your employer, but under certain conditions:
- You must have completed 1 year of continuous service with your current employer, and the transfer requires employer approval.
- If you want to transfer without your employer’s consent, you can do so 3 years after the work permit is issued, but you will need to file a complaint with the Public Authority of Staff (PAM).
5. Are migrant workers in Kuwait entitled to a minimum wage?
Kuwait’s migrant workers are entitled to a minimum wage of KWD 75. The wage is equal to US$250 per month. This applies to all workers in the private sector. For workers, it ensures a baseline level of remuneration.
Self-Appraisal Comments by Employee: Example