- Overview: Kuwait
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Kuwait
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Kuwait Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Kuwait and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Kuwait as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Kuwait instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Kuwait .
We are experts in global workforce employment in Kuwait, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Kuwait.
See Hiring and Firing Workforce in Kuwait Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Kuwait or would like to get more details.
Hiring and Firing Workforce in Kuwait Guide
# Employment contracts
The work contract shall be made in writing and contain, in particular, the signing and effective dates of the contract, the amount of remuneration, the term of the contract if it is for a specific period and the nature of work. The contract shall be made in three copies, one for each party and the third shall be lodged with the competent authority at the Ministry. In the event where the work contract is not established by means of a written document, it shall still be deemed to exist and the worker may, in such event, establish his rights by all means of evidence.
Regardless of whether the work contract is for a specific of indefinite term, the remuneration of the worker may not be reduced during the contract validity period. Any agreement to the contrary, whether made before or after the effective date of the contract, shall be deemed null and void because this matter is related to the general order.
The employer may not assign to the worker any task that is not consistent with nature of the work stated in the contract or that is unsuitable to the worker’s qualifications and experience on the basis of which the contract was signed with him.
All contracts shall be written in Arabic and translations to any other language maybe added thereto, provided that the Arabic version shall prevail in the event of any dispute. The provision of this article shall apply to all correspondences, publications, by laws and circulars issued by the employer to his workers.
# Minimum (Statutory) Employment Rules and Regulations in Kuwait
# Hours of work:
Without prejudice to the provisions of Article (21) of this Law, it is forbidden to allow workers to work for more than 48 hours per week or 8 hours a day, except in such events as are specified in this Law. Working hours during the month of Ramadan shall be equal to 36 hours per week.
However, it shall be allowed, by a ministerial resolution, to reduce working hours in hard jobs, jobs that are harmful by nature or for severe circumstances.
# Probation period:
The probation period of the worker shall be specified in the work contract, provided that it shall not exceed 100 working days. Either party may terminate the contract during the probation period without notice. In the event where the termination is made by the employer, he shall pay the worker’s end of service benefit for the period of work in the accordance of the provisions of this Law.
The worker shall not be on probation more than once for the same employer. The Minister shall issue a resolution to organize the conditions and regulations of work during the probation period.
# Annual leave:
The worker shall be entitled to a 30-day paid annual leave. However, the worker shall not be entitled to a leave for the first year of work except after at least 9 months of service for the employer. Official holidays and sick leaves during the year shall not be counted as annual leave. The worker shall be entitled to a leave for the fractions year in proportion with the period he spent in actual service, even the first year of service.
The worker shall be paid for his annual leave before taking such leave. The employer shall have the right to determine the date of the annual leave and divide such leave after the first 14 days thereof, with the consent of the worker. The worker shall have the right to accumulate his leave entitlements provided that they do not exceed two years and he shall be entitled to take his accumulated leave all at once subject to the approval of the employer.
# Parental leave:
A pregnant working woman shall be entitled to a paid maternity leave of 70 days, not included in her other leaves, provided that she gives birth within this period. After the end of the maternity leave, the employer may give the working woman, at her request, an unpaid leave for a period not exceeding four months to take care of the baby.
The employer may not terminate the services of a working woman while she is on such leave or during her absence from work because of a sickness that is proved by a medical certificate that states that the sickness resulted from pregnancy or giving birth. The working woman shall be allowed a two-hour break during her working hours in order to feed her baby according to such conditions as shall be set forth in the Ministry’s decision. The employer shall establish a nursery for children below the age of 4 at the place of work in the event where the number of female workers exceeds 50 or the number of workers exceeds 200.
# Sick leave:
Subject to the provisions of Article (24) of this Law, the worker shall be entitled to the following sick leaves during the year:
- 15 days – at full pay;
- 10 days – at three quarters of the pay;
- 10 days – at half pay;
- 10 days – at quarter pay;
- 30 days without pay.
The worker shall provide a medical report from the doctor appointed by the employer or the doctor of the government medical center. In the event of conflict regarding the necessity of a sick leave or its duration, the report of the government doctor shall be adopted. Incurable diseases shall be excluded pursuant to a resolution issued by the competent minister, in which he shall specify the types of incurable diseases.
The employer may, by means of a written order, have workers work overtime if the necessity arises for the purpose of preventing a dangerous accident, repairing damages arising from such accident, avoiding a loss or facing an unusual work load. The overtime work should not exceed two hours a day, a maximum of 180 hours a year, three days a week or 90 days a year. The worker shall have the right to prove by any means that the employer required him to perform additional works for an additional period of time. The worker shall also be entitled to a 25 percent increase over his original remuneration for the period of overtime.
# State minimum salary:
Kuwait’s minimum wage is 60 Kuwaiti dinars per month ($216). Kuwait’s minimum wage was last changed in April 2010.
# Employee dismissal:
The employer may terminate the services of a worker without notice, compensation or benefit in the event where the worker has committed any of the following acts:
- If the Worker has committed a mistake that resulted in a large loss for the employer.
- If a was found that the worker obtained employment through cheating or fraud.
- If the worker divulged secrets related to the establishment which caused or would have caused real losses.
The employer may dismiss the worker in any of the following events:
- If he been found guilty of a crime that relates to honor, trust or morals.
- If he committed an act against public morals at the work site.
- If he assaulted one of his colleagues, his employer or deputy during work or for a reason thereof.
- If he breached or failed to abide by any of the obligations imposed on him by the contract and the provisions of this Law.
- If he is found to have repeatedly violated the instructions of the employer.
In such events, the decision of dismissal shall not result in the deprivation of the worker of his end of service benefit. The employee who is dismissed for any of the reasons stated in this article shall have the right to object to such decision before the competent labor department in accordance with the procedure set forth in this Law. If it is established, by virtue of the final verdict, that the employer arbitrarily dismissed his worker, the latter shall be entitled to an end of service benefit and a compensation for material and moral damages.
In all cases, the employer shall inform the Ministry about his decision to dismiss and the reasons for such decision and the Ministry shall inform the Manpower Restructuring Team. In the event where the term of the work contract is not specified, both parties shall have the right to terminate the same by means of a notice to the other party as follows:
- Three months prior to the termination of the contract for the workers earning a monthly remuneration.
- One month prior to the termination of the contract for other workers.
In the event where the party wishing to terminate the contract does not abide by the period of notice, he shall be obliged to pay the other party a compensation for the notification period equal to the remuneration of the worker for the same period.
- In the event where the notification of termination is issued by the employer, the worker shall have the right to be absent one day or 8 hours per week in order to search for other work. He shall also be entitled to his remuneration for the day or hours of absence.
The worker shall decide on the day or hours of absence and shall notify the employer at least one day prior to such absence.
- The employer may exempt the employee from work during the period of notification while but shall count such period within the worker’s period of service. The employer shall pay the worker all his entitlements and remuneration for the period of notification.