Kuwait
Capital: Kuwait City
Currency: Kuwaiti Dinar- KWD
Kuwait Labor Law and Employment Policy Overview
Employment Law Overview
- Key Legislations:
- Labor Law (Law No. 6/2010)
- Social Insurance Law (Law No. 18/1976)
- Health Insurance Law (Law No. 116/2019)
- Legal Characteristics:
- Aims to protect employees' rights and benefits
- Stipulates requirements for employment contracts, working hours, leaves, social insurance, and end-of-service benefits
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts (not exceeding 5 years)
- Indefinite-term contracts
- Contractual Provisions:
- Must include details of employer and employee, job description, salary, working hours, probation period, and benefits
- Language and Currency:
- Contracts must be written in Arabic
- Currency is Kuwaiti Dinar (KWD)
Working Hours Regulations
- Standard Working Hours:
- 8 hours per day, 48 hours per week
- Rest Days and Breaks:
- One rest day per week (usually Friday)
- One-hour break per day after 5 consecutive working hours
Leave Policy
- Annual Leave:
- 30 days, after 9 months of service
- Public Holidays:
- 8 official public holidays
- Special Leaves:
- Sick Leave: Up to 45 days paid sick leave with medical certificate
- Maternity Leave: 70 days paid maternity leave, followed by 4 months unpaid leave
- Paternity Leave: No statutory paternity leave
- Parental Leave: No statutory parental leave
- Bereavement Leave: Up to 3 days for the death of an immediate family member
Employee Termination and End of Service
- Notice Period:
- Employees paid monthly: 3 months
- Other employees: 1 month
- End-of-Service Benefits:
- Service of 1-5 years: 15 days' salary for each year
- Service of 5+ years: 30 days' salary for each year
- Unfair Dismissal Protection:
- Employers cannot dismiss employees during probation period
- Employers must issue written warnings and provide opportunity to explain before dismissing employees
Taxation
- Personal Income Tax:
- Kuwait has no personal income tax
- Social Insurance Contributions:
- Employee: 7.5%
- Employer: 11.5%
Health Insurance
- Insurance Policy:
- Expatriates must have health insurance to obtain a residency permit
- Coverage:
- Basic medical services
Compensation and Benefits
- Minimum Wage:
- 75 KWD/month
- Salary Structure:
- Salaries are typically paid monthly
- Benefits such as bonuses and allowances are at the discretion of the employer
Work Permits and Visas
- Permit Requirements:
- Expatriates require a work permit and residency visa
- Application Process:
- Employer applies to the Ministry of Labor
- Application includes documents such as employment contract, medical certificate, and passport copy
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Kuwait
- Common Provisions:
- Restrict employees from disclosing confidential information after termination
- Restrict employees from working for competitors for a certain period
Training and Development
- Legal Requirements:
- No statutory requirements
- Government Support:
- Government provides some training and development programs
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on gender, race, religion, or nationality
- Enforcement:
- Ministry of Labor responsible for enforcing anti-discrimination laws
Remote Work Policy
- Legal Framework:
- No specific legal framework
- Tax and Insurance Implications:
- Remote work may impact tax and social insurance contributions
Key Website Addresses
- Ministry of Labor: https://www.mol.gov.kw/