Kuwait Law: Termination Questions

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 [email protected] 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 mark248am1.wpenginepowered.com are those of the individual’s and in no way reflect Fajer’s opinion.