Kuwait Law: Termination Questions

Post by Fajer Ahmed

contract

I know it has been a while since I posted my answers publicly, but I am still reading your questions and responding to your emails. I really do enjoy interacting with you and I feel so grateful that I am able to help people by making law simple and more accessible. So thank you.

I recently had a question by a reader which and I thought I would answer here. I rewrote the question to make it easier for everyone to understand but the gist of it is the same.

Question: So I had an argument with my manager, and now he is saying that business isn’t that great so I am going to be fired. So I ask him for a 3 month notice period as its my right and he refuses, says he will discuss it with his lawyer.

1) Do I get my 3 month salary for the notice period on a monthly basis or all in one payment after transferring my residency to another company?

Usually when you are terminated because of “restructuring” then they either ask you to stay three months and work, and if so you get paid each month separately. Or they pay you three months in bulk although the law didn’t specify when you should be paid, there are things to be careful about.

First be very careful about signing any documents, although illegal, it is common practice in Kuwait for companies to refuse to transfer your papers unless you sign a document stating that you no longer have any monetary rights with their employer i.e. they have received all the money owed to them. This prevents employees from filing lawsuits in the future asking for their notice period, termination indemnity, etc

Second if your boss asks you not to come in to work for the next three months but will continue to pay you, ASK FOR IT IN WRITING. Some employers will verbally ask their employees not to come in and then file an absconding case against them.

Always ask your employer to hand you a resignation letter in writing which includes the reason of termination.

2) If I leave after 3 months I’d have completed 21 months in the company, do I get my indemnity or leave balance?

Yes you are entitled to termination indemnity. If the employer terminated the employee or the contract ended, the employee is entitled to his full termination indemnity which is calculated as 15 days per year (adducing you are in the private sector and you receive a monthly payment). How do you calculate the 15 days?

You divide your salary by 26 days, and then times the number by 15 days for the first year. Then times that number by 1.75 because you worked 3 quarters of a year for the additional 9 months that you worked. I know calculating termination indemnity can be difficult so I will write a separate post for that next week.

Feel free to email me ask@fajerthelawyer.com with any legal questions. I do not have the capacity to answer everyone for free (but I try), and I am happy to announce that I am currently working with a great team and therefore we are able to reply back to all emails with a reasonable time frame.

Post by Fajer Ahmed – Legal Counsel
The legal opinions expressed in this post are those of the author Fajer. Opinions expressed by Mark or any other writer on 248am.com are those of the individual’s and in no way reflect Fajer’s opinion.


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10 comments, add your own...


  1. aaa says:

    Is it true that Kuwaitis are not eligible for indemnity if working in a private company?

  2. dfine says:

    HI,

    I have a legit company in Kuwait with 8 – 10 employees.
    Over the time I have faced problems with employees who either lied on their C.V of their capabilities or their promise to learn the skill is absent.

    As a company we transfer them after 3 months, they have a sign contract from day one, their salary is high and paid on time every month. They have all the tools they need to work. Office is nice and well equipt, clients are good. Two days off every week, no major over time.

    This is what has happen with some of them.
    They don’t notify when their late or absent, they don’t do their work task their asked to do. Work delivered is amateur and not even deliverable. You have to repeat to them the task a 100 times etc etc.. AS if they don’t care, because they are just here for a short period.

    After some time, the last drop is reached and there is no other way than to let them go. Now as a company we wasted our time, by giving someone and opportunity and now we have to give them 3 months salary for sitting at home?? Because at this point there is no way this employee can stay in the office and work.

    Visa has to be kept with us and salary has to be transferred until they can transfer to another company whom we hope will happen after 3 months probation period.

    I am sorry this country should not allow to have such laws, when the level of work force is what it is.

    Converted believer…

  3. Ahmed says:

    Good advice. 👍

  4. hajer says:

    I was terminated immediately without any reason. In order to get release I was forced to signed on a paper that I got my indemnity. Matter fact I never got. GM said if I complained to ministry, he would report me within 24hrs.

    Its been 16years and I wrote to the same company’s new management requesting for my indemnity and explaining everything but the new Chairman didn’t entertained my request.

  5. Kuwait law buff says:

    The response to the first question is wrong.

    Article (115)

    1- Any condition contained in the individual or collective work contracts and that violates the provisions of this Law shall be considered null even if the contract was signed prior to the entry into force of this Law, unless such conditions is more beneficial to the worker.

    2- Any condition or agreement signed prior or subsequent to the entry into force of this Law whereby the worker waives any of the rights stipulated in this Law shall be invalid. Any reconciliation or settlement that involves a reduction or discharge of the worker’s rights arising from the work contract made during its term or three months thereafter shall be invalid if it conflicts with the provisions of this Law

  6. Hi
    I am into a problem. My manager into a discussion said OUT,leave right now clear ur desk..Later came to my desk and repeated my decision is final.Leave.Now he is not giving me termination nor want me to work.i was a sub contracting company and he says contact the hiring team where my visa is.. Hiring company states contact sub contracting manager to give letter .s

  7. Hi..
    Nobody is responding on calls or mail..seems they dont want to give termination letter and pay 3mths sal.. also i m worried if they can put me in absconding ??.. wat can i do in this case .. Thanks in advance

  8. Hi. I have been forcefully terminated using words as”Out”.Now they are asking me to sign resignation letter so that they dont have to pay me termination 3mths sal but instead work for 3mths notice period.Havent signed that letter as yet.Kindly reply should i sign or should i not. worried if they can put me in absconding if dont sign.. Waiting for reply.Thanks

  9. Sam says:

    I got terminated from my company few days back . So can I apply for new job .?? My visa is government..plzz reply me .


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