On termination, an employee is entitled to the full end of service indemnity without deducting the contributions made by the employer towards the Public Institution for Social Security (“PIFSS”). Previously, some employers used to deduct the amount that they had contributed towards social security from their employee’s end of service pay out, but this practice is no longer permitted.

A new standard form employment contract called the Unified Employment Contract has been introduced which includes 16 standard clauses.

Where an employee has worked with an employer for three years (beginning with the date of issue of the work permit), the employee is free to move jobs provided he serves his notice period (which, for those employed on a permanent employment contract, will be such notice as the employment contract provides). Employees on fixed term contracts will have to complete the remainder of the contract before being able to move jobs.

Where an employee has worked with an employer for three years (beginning with the date of issue of the work permit), the employee is free to move jobs provided he serves his notice period (which, for those employed on a permanent employment contract, will be such notice as the employment contract provides). Employees on fixed term contracts will have to complete the remainder of the contract before being able to move jobs.

• All employers (save in respect of certain exempt industries) with five or more employees must pay salaries to employees’ accounts with local financial institutions and the Public Authority for Manpower may request a copy of the statements of payments
• Companies which bring in expatriate employees to Kuwait and then fail to provide them with employment or find that there is no actual need for the employee may now be fined and the employer shall bear the expenses of the repatriation ticket. If the employee stops working for the employer without proper notice and joins another company the new company will be liable to pay for the repatriation of the employee once the original employer reports that the employee has been absent from work. The fines have increased to KD 2,000 – KD 10,000 and could result in imprisonment of up to three years.
• Various fines and penalties may be imposed where an employer does not:
• Take proper safety measures to protect its employees;
• Instruct the employee of the risks and warnings associated with his work; or
• Protect the employee from work hazards (such as health damage and occupational diseases that may arise from the performance of the work).
• The Ministry can partially or completely close the premises or suspend the use of a specific machine or machines until the violation is remedied. The fines and penalties for violation of closures have increased to KD 500 to KD 2,000 and/or imprisonment for one to six months.