Kuwait's Labour Law: What Employers Need to Know

Overview

Law No. 6 of 2010 on Labour in the Private Sector, as amended governs the relationship between employers and employees in Kuwait, setting minimum rights that cannot be waived by agreement, even where an employment contract states otherwise.

Key Employer Obligations

• Concluding a written employment contract specifying the nature of work, wage, and duration.
• Complying with statutory working-hour limits and overtime compensation.
• Granting the annual and sick leave entitlements at or above the statutory minimum.
• Paying end-of-service gratuity in accordance with the bases set out in the law upon termination of the employment relationship.

Unfair Dismissal and Disputes

The law protects employees from unfair dismissal, and allows an affected employee to refer the matter to the labour department and then to the labour courts to claim appropriate compensation. It is important for employers to clearly document the reasons for termination to avoid later disputes.

Practical Advice for Companies

Periodically reviewing employment contracts and internal labour policies to ensure they keep pace with the latest legislative amendments spares a company unnecessary financial and legal risk — particularly for companies with a large workforce.