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Kuwait Labour Law and Employment Contract

Holidays

An employee has the liberty to enjoy one whole day off per week. The day off is without pay and is traditionally scheduled during Fridays. However, this is not a legal requirement in Kuwait. There are eight holidays in a year, where an employee is entitled to enjoy full payment.

The holidays are as follows:

Hijri New Year’s Day (1 Day), Ascension Day (1 day), Eid Al Fitr (2 days), Eid Al Adha (2days), Prophet Mohammed Birthday (1 day), National Day (1 day). There is also a holiday for Liberation Day, but for private sector, it is not a statutory holiday.

 

Annual Leave

Employees are allowed to take 14 whole days of leave annually for completion of one year of service, and 21 days of leave every year after five continuous years of service. These annual leave do not include sick leave and official holidays. The employer is given the power to schedule the date of employees leave. In case of employee’s termination of service, the employee is entitled to receive cash payment in lieu of accumulated leave. This is irrespective of the number of years of leave due. Payment for accumulated leave should be computed on the basis of last salary payable on termination date.

Sick Leave / Overtime

An employee is entitled to sick leave, subject to a satisfactory medical report. The first six days of illness the employee is given full pay, the next six days he will be on ¾ pay, the next six days on ½ pay, and the next six days on ¼ pay, and next six days without pay. The entitlement is one year and not for period of sickness.

An employee may be required to work overtime, provided, it is necessary and the employer's order is in writing. Overtime rates are 1.25 times the basic hourly rate for excess hours worked on ordinary days, 1.50 times the basic hourly rate for all hours worked on the weekly day off and twice the basic hourly rate for all hours worked on public holidays.

Overtime working is only permitted for maximum 90 days a year, and is limited to additional two hours a day, 6 hours a week and 180 hours a year. The employee has the right to refuse overtime work.

Female Employees

A woman should be paid equal remuneration for performing same work as a man. The standard working hours for women are the same as that for men. However, women may not work at night 8pm to 7am, except in clinics, hotels, pharmacies, nursery schools, homes for handicapped, airline and tourist offices, theatres and Entertainment City. They can work up to midnight in co-operative societies and public utilities, restaurants, beauty salons, banks, tailoring shops and offices. Employers are obliged to arrange transportation for women working at night.

Maternity Leave

A woman employee is granted maternity leave to a maximum of 30 days prior to delivery and 40 days after delivery on full pay. Therafter, she may absent from work without pay for up to 100 consecutive or non-consecutive days, provided, she presents a medical certificate stating that she is ill as a result of gestation and parturition.

Termination

Employment contract will automatically expire at the end of fixed period mentioned in the contract. If the contract is renewed by the employer, and if the employee is willing to work for another period then the same conditions will be applicable.
In case the contract does not state any conditions pertaining to termination of contract before end of fixed period, either party can terminate the contract. The party that terminates the contract should compensate the other.

If an employee has an employment contract with indefinite period, termination can be made by informing the other party in writing. The notification should be given 15 days before the termination. In lieu of notice, either party may pay the other an amount equivalent to 15 to 7 day salary.

If the employee commits any sins such as doing wrongful act, always disobey employer’s instructions, disobeys safety instructions at work, takes leave without any reason for seven consecutive days, convicted of crime affecting honour and morality, commits act against public ethics in work place, assaults fellow employee, fails to perform obligations under terms of his contract, commits fraudulent activities, or reveals company secrets, the employer has the right to terminate such an employee without prior notice and without paying the employee’s indemnity and compensation.

On the other hand, if the employer commits any acts such as failing to abide by provisions slated on employment contract, assaults his employee, endangers employee’s health, an employee has the right to end contract prior to its expiry and without prior notice, and can collect his indemnity and no payment for compensation to employer will be applicable.

In the event of death of an employee, or if employee fails to perform his work, or uses up all his sick leaves, his contract will automatically be terminated. However, Indemnity will be paid.

An employment contract will also get automatically terminated if his company goes into liquidation, merges with another firm, experiences lockout, or is sold or inherited. The new owner then has the right to indemnity while employees may continue to serve the new owner while reserving his rights to indemnity for his previous service.

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