KUWAIT Law and Practice Contributed by: Sam Habbas, Luis Cunha, Hisham Al-Quraan and Mustafa Sayed, ASAR – Al Ruwayeh & Partners
seen in certain sectors where Kuwaitis, rather than foreigners, form the majority of the sector’s workforce. 4.2 Characteristics of Employment Contracts The employment contract is used to obtain the necessary work permits, residence visas and any other government approvals required for an employee, and the Labour Law sets out the basic information required to be included in employment contracts. According to Article 28, the employment contract should be in writ - ing (although an employment relationship can be evidenced through all means of proof) and must include the contract date (both the date of conclusion and the date of validity), the wage payable and the duration of the contract (if a fixed-term contract). The employment contract must also be filed with the MOSAL. The duration of an employment contract can be either fixed (ie, for a specific period) or indefi - nite. Depending on the applicable duration, this affects notice periods to be afforded prior to ter - mination, end-of-service benefits payable upon conclusion of the contract, etc. 4.3 Working Time As a general premise, Article 64 of the Labour Law provides that employees are not to work more than eight hours per day or 48 hours per week, except as specified in the Labour Law. Article 66 stipulates that workers may work over - time if the necessity arises, provided that the overtime work does not exceed two hours a day, three days a week, 180 hours a year or 90 days a year. Workers are entitled to a 25% increase on their original remuneration for the period of overtime worked, and employers must maintain overtime records detailing the dates, overtime hours and wages.
Employees are also afforded certain rest peri - ods under the Labour Law. In this regard, dur - ing the month of Ramadan, the working hours should not exceed 36 hours per week (Article 64). In addition to public holidays, employees are entitled to a one-hour break after working for five consecutive hours (Article 65) and to at least one 24-hour rest day every six days (Article 67). If employees are required to work on a rest day or holiday, then employers must pay such employee an additional 50% for rest days or an additional 100% for holidays, and must afford the employee an alternative rest day/holiday, as applicable. 4.4 Termination of Employment Contracts Kuwait is not an employment-at-will jurisdic - tion. Under Article 41 (a) of the Labour Law, an employer may terminate the services of an employee without notice, compensation or ben - efit if: • the employee has committed a mistake that resulted in a significant loss for the employer; • the employee obtained employment through cheating or fraud; or • the employee divulged secrets related to the establishment that caused or could have caused real losses. Article 41 (b) provides that an employer may dismiss an employee (subject to the payment of the employee’s end-of-service benefits) if the employee: • has been found guilty of a crime that relates to honour, trust or morals; • has committed an act against public morals at the work site;
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