Arbitrary Dismissal in Kuwait: When It Is Unlawful and How Much Compensation You Can Claim (Articles 41, 46 and 47)

Arbitrary dismissal in Kuwait: what it means

Labour Law No. 6 of 2010 applies to workers in the private sector (Article 2), and excludes domestic workers and workers governed by other laws (Article 5). Its provisions are the minimum rights of workers, so no contract or regulation may reduce them (Article 6).

Article 46 does not use the phrase "arbitrary dismissal", but it states the basic prohibition: a worker's service may not be ended without justification. Article 41(c) states expressly that a dismissed worker may challenge the decision before the competent labour circuit, and that if a final judgment establishes that the employer abused its right in dismissing the worker, the worker is entitled to the end-of-service indemnity and to compensation for material and moral harm.

Article 46: when a dismissal is unjustified or prohibited

Other protections in the law point the same way:

• Pregnant workers: service may not be ended during maternity leave, or during absence caused by an illness certified as resulting from pregnancy or childbirth (Article 24).
• During leave: the employer may not use its right to terminate by notice while the worker is on a leave provided for in the law (Article 45).
• Detained workers: a worker detained because of the employer's accusation, or serving a non-final sentence, is treated as suspended and may be dismissed only after a final conviction; if acquitted, the employer must pay wages for the suspension and fair compensation set by the court (Article 43).
• Probation: either party may end the contract during probation without notice, which may not exceed one hundred working days; if the employer ends it, it must pay the end-of-service indemnity for the period worked (Article 32).

Article 41: lawful dismissals and the consequence of abuse

Article 41 opens with "subject to Article 37", meaning no penalty may be imposed on a worker except after notifying them in writing of the allegation, hearing their statements, investigating their defence and recording this in minutes. It then divides dismissal cases into two categories:

In all cases the employer must notify the Ministry of the dismissal decision and its reasons, and the Ministry notifies the Manpower Restructuring Programme. A worker may also ask for an end-of-service certificate, which may not contain any wording that harms them or reduces their job prospects (Article 54).

How much is compensation for arbitrary dismissal in Kuwait?

The honest answer: the law sets no fixed amount or percentage for compensation for arbitrary dismissal. Article 41(c) establishes the principle of compensation for material and moral harm and leaves the assessment to the court according to each case, so any promise of a specific figure before the file has been studied is unreliable. What the law does let you calculate is the following:

Worked example of the indemnity: a monthly-paid worker with 8 years' service whose service is ended by the employer receives, under Article 51(b), 15 days' wages for each of the first five years, plus one month's wages for each of the following three years. Added to that is pay in lieu of notice if no notice was given, and then whatever compensation the court assesses for the harm if abuse is established. Any debts or loans owed by the worker may be deducted from the indemnity.

Article 47: ending a fixed-term contract early

A fixed-term contract may not be shorter than one year or longer than five (Article 30). If either party ends it without right, it must compensate the other for the harm suffered, but the compensation may not exceed the worker's wages for the remaining term (Article 47). In assessing the harm, custom, the nature of the work, the length of the contract and all considerations affecting the existence and extent of the harm are taken into account, and any debts owed to the other party are deducted from the compensation.

Article 47 applies to both parties: it limits the compensation of a worker dismissed before a fixed term ends, and equally limits what an employer can claim if a worker leaves without right. If the parties keep performing the contract after the term expires without renewing it, it is treated as renewed for similar periods on the same terms (Article 31).

How to bring a claim

1. Gather the documents: the employment contract, the dismissal decision and its written reasons, payslips, proof of length of service, and any warnings or correspondence before the dismissal.
2. File a request with the competent Labour Department: a lawsuit must be preceded by a request from the worker to the competent Labour Department, which summons the parties (Article 146). These functions now sit with the Public Authority for Manpower.
3. Allow for the settlement attempt: if the Department fails to reach an amicable settlement it must, within one month of the request, refer the dispute to the Court of First Instance with a memorandum summarising the dispute, the parties' defences and its own observations (Article 146).
4. The court case: the court clerk must set a hearing within three days of receiving the file (Article 147); labour cases are heard urgently, and workers' claims are exempt from court fees (Article 144).
5. Mind the time limit: if the employer denies it, claims by workers based on the Labour Law are not heard once a year has passed from the end of the contract (Article 144).
6. Do not waive early: any settlement or release that reduces or waives the worker's rights during the contract or within three months of its end is void where it contravenes the law (Article 115). Workers' rights also carry a privilege over the employer's assets, excluding its private residence (Article 145).

Common mistakes that cost workers their rights

• Signing a resignation or release under pressure: resignation changes the characterisation and reduces the indemnity by length of service (Article 53: half for 3 to under 5 years, two-thirds for 5 to under 10, in full from 10 years).
• Delaying the claim: a year after the contract ends lets the employer plead that the claim is not heard if it denies it.
• Skipping the Labour Department request: it is a precondition to the lawsuit (Article 146).
• Settling for the indemnity alone: the end-of-service indemnity is a separate right, and compensation for abuse is claimed in addition (Article 41(c)).
• Not asking for the end-of-service certificate: the worker is entitled to it without any damaging wording (Article 54).

For employers: avoiding an arbitrary-dismissal finding

• Document the reason: state the reason for dismissal in writing and make sure it fits Article 41 or another lawful justification.
• Follow Article 37: notify the worker in writing of the allegation, hear their statements, investigate their defence and record it in minutes placed in their file.
• Respect the penalty regulation: a worker may not be penalised for an act proven more than fifteen days earlier (Article 35(d)), penalties must be graduated, and no more than one penalty may be imposed for one violation.
• Observe the notice period: 3 months for monthly-paid workers and 1 month for others, or pay in lieu (Article 44).
• Notify the authority: the Ministry must be notified of the dismissal decision and its reasons in all cases (Article 41).

The text of the law and its implementing decisions is available through the Public Authority for Manpower.

Frequently Asked Questions