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Employment in Kuwait

The most notable legislative sources in Kuwait is Law n. 6/2010 (Private Sector Kuwait Labor Law). Article 10 of Law 6/2010 states that “The employer shall be prohibited from employing foreign manpower unless the competent authority has granted them a permit to work for him.

The Minister shall issue a resolution setting forth the procedures, documents and fees that shall be paid by the employer. In the event of refusal, such refusal shall be justified by stating the reason thereof, and the reason for such refusal shall not be related to the amount of the capital, otherwise the decision shall be absolutely null and void”.

Key points on employment in Kuwait

There are several key areas to be aware of within the Kuwait employment regulatory framework, especially for companies that plan to initiate a full local office and human resources department.  These challenges can be mitigated by use of a locally sourced payroll provider who is familiar with all of the local laws and rules for both local employees as well as foreign nationals.

Employee Entitlements

Information Explanation
Working on Sundays ?

Whenever a Worker is made to work in an official public holiday due to work conditions, such Worker shall be entitled to a double wage for that day.

Employee Protection and Anti-discrimination Rights ?

The Constitution prohibits discrimination based on race, national origin, language, and religion; however, in practice, the Government did not uniformly or consistently enforce laws against discrimination.

Time Off Work ?

The Worker shall be entitled to a weekly period of rest not less than one day without pay, and in case the Worker is made to work in the weekly rest, he/she shall be entitled to a wage in return for that day equaling the original wage per day plus 50% at least.

Medical Leave ?

The Worker whose sickness is recorded in a medical certificate issued by a physician appointed by the Employer or by the attending physician of any government health unit shall be entitled to sick leaves during the year. The sick leaves shall be computed as follows:

  • Six days with full pay;
  • Then six days with three quarters of the pay;
  • Then six days with half of the pay;
  • Then six days with quarter of the pay;
  • Then six days without pay.

Employment Termination

Information Explanation
Severance / Redundancy Pay ?

The party terminating the contract may pay to the other party compensation in return for the notification equaling the wage due to the Worker for the period determined for the notification.

If the labor contract concluded with a definite period and is terminated by one party and the contract fails to mention anything dealing with such case, the party terminating the contract shall compensate the other party for damages. If such termination is initiated by the Employer and for reasons other than those prescribed, the Employer shall be obliged to compensate the Worker for any damage in accordance with the customary practices and work nature, the period of the contract, and in general the conditions where the damage is made certain and the scope of such damage, provided that the amount of compensation shall not by any means exceed the value of the remainder of the wage due to the Worker for the remaining period of the contract. If the termination is initiated by the Worker, the Worker shall be obliged to compensate the Employer for the loss that the Employer incurred as a result of the termination of the contract.

Termination of Employment ?

If the labor contract is for an indefinite period, each of the two parties may terminate it on condition of notifying the other party in writing of such termination.

The notification shall be provided as follows:

  • in the case of workers appointed on monthly wage basis, the notification shall be delivered at least fifteen days before the contract is terminated;
  • In the case of other workers, the notification shall be delivered at least seven days before the contract is terminated.

Outsourcing Employment Through a GEO Employer of Record Service

Compliance with local employment requirements is just one of the issues foreign companies face when employing staff in Kuwait. For companies, which intend to employ their staff directly through their incorporated Kuwait entity, professional legal advice is recommended. Shield GEO provides an alternative path for companies to outsource the employment of their staff in Kuwait.

As a Global Employer Organization (GEO), Shield GEO acts as the Employer of Record and ensures the employment is compliant with host country regulations regarding employment. In addition Shield GEO will handle payroll processing, tax and immigration. Using Shield GEO is the fastest and most cost effective way to deploy local and foreign workers into Kuwait.

The Shield GEO solution is an attractive alternative where

– the company is looking to employ staff quickly

– the company doesn’t have an appropriately incorporated entity in Kuwait

– the company wants to work within a defined budget

– the company wants to limit its initial commitment in Kuwait

– the company needs help with tax, employment, immigration and payroll compliance in Kuwait

Shield GEO can contract directly with the company to employ and payroll their staff in Kuwait. Shield GEO supplies local employment contracts for the staff which ensure that local statutory requirements are met covering issues such as termination, probation periods, leave entitlements and statutory benefits.  Shield GEO is able to advise companies how to cover local employment regulations whilst still providing consistent global employment policies. Understand more about outsourced employment through Shield GEO.



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