Termination Indemnity
A lump sum payment also known as termination compensation is given to employees when the employment is terminated. For those who have worked less than five years for each year completed by workers, they are entitled to termination indemnity equivalent to 15 days compensation for every year completed. But, it may be limited to one and a half year’s remigration, if the employee works for more than five years.
In the case of employees who are paid based on piece-rate, hourly, daily or weekly, a termination indemnity of 10 days compensation for each completed year of service is obtained for the first five years, and 15 days salary payment is given for each completed year for more than five years. In case where part years and pro-rated amount is calculated, this is limited to one year’s salary.
An employee who is unable to complete five years of service will not be entitled to any indemnity, once he decides to resign. Employees who resign after working for five years or more in the company, will be given 50% indemnity. Employees who have reached their retirement age, are disabled at work, or died, are given full indemnity. A full indemnity is given to women employees who may while being an employee, and women employees who render resignation within six months of marriage.
Health & Safety
Employers are obliged to take precautions to protect their employees against physical hazards and occupational diseases at work. They are required to ensure that their work places are clean, well ventilated, and in sanitary condition. Employers are required to supply first aid kits containing medicines, antiseptics and bandages and place within visible reach of employees.
Disciplinary Notices & Penalties
All related regulations for employees need to be issued in a form of circulars or bulletins. The regulations need to be written in Arabic. Employees who have committed offense may be penalized if the regulation specifies that the offensive act is punishable. All penalties need to be progressive, but, limited, like for instance, every act of misbehavior is equivalent to one punishment. If the misbehavior is committed after work hours and outside the workplace, and is not related to work, no penalty will be imposed, and so on.
If the penalty is salary deduction, it should not exceed 5 days a month. If the penalty exceeds total amount of employee’s five days salary, then another 5 days deduction will be imposed on next salary. If the penalty is suspension from duty, it should not exceed 10 days a month. If the act of misbehavior has been proven after 15 days, a penalty cannot be imposed.
Compensation
If an employee is injured at work, the employer should report the matter to local police station and MSAL. The injured employee has the right to treatment at employer's expense in any government hospital or private clinic, whichever the employee considers suitable. A doctor's report stating treatment period required, disability arising out of accident and fitness to continue to work need to be obtained.
An employee is entitled to compensation for injuries pertaining to work. An employee’s family is entitled to compensation if the employee is not guilty of malpractice or intentional injury. The employee’s family has the right to claim compensation if the employee’s injuries have caused him more than 25% disability or dies. Even if the employee is guilty of gross malpractice, the family will still be compensated.
The amount of compensation is based on severity of the injury. If the injury results in death, total amount of 1500 days salary or more is given. The current legal blood money is KD10,000. Employees with permanent disability will be compensated to the total amount of 2000 days salary or more. One and one-third times the legal blood money will also be provided.
Trade Unions and Dispute Resolutions
Trade Unions formation and activities are strictly controlled. Only one union is allowed to be established for workers in any profession. An employee is not allowed to join in more than one union. For immigrants, a valid work permit and Kuwait work experience of more than five years is a requisite to become a union member.
In case of disputes between employer and some of his employees relating to work, direct negotiations should be first tried out, and an agreement should be in place. It should then be registered with MSAL within seven days. If there is no such deal, MSAL will be requested to intervene by both parties. If the dispute is not settled within 15 days by MSAL, the dispute is then forwarded to Labour Disputes Arbitration Committee in the courts. Each party is permitted to have maximum of three representatives, and any decision made by committee in this regard, is final and binding.
Some tips for expats
Ensure that employment contract is in writing.
Cross verify the salary indicated in the employment contract, with that in work permit, as in the event of dispute, MSAL may rely on work permit.Keep records of salary and other payments.
It is illegal for expats to work in Kuwait, except in work visa and for their own sponsor. Part-time work requires special permit.Employer cannot cancel an employee’s residence unless all dues and indemnities have been paid in full.
An employer cannot give notice of termination when an employee is sick or injured.In case of dispute, seek legal advice.Keep photocopies of all documents, including work permit.
In case of any need, here are contact details of MSAL departments
COUNTRY : KUWAIT
CONTACT PHONE : 00965-22401200
CONTACT FAX : 00965-22416574
P. O. BOX : 1070
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