Kuwait’s Public Authority for Manpower (PAM) has issued guidance outlining the circumstances under which an employment contract can legally be terminated. The authority said both employees and employers have specific rights and obligations under Kuwait’s labour law.
When Can an Employment Contract End Automatically?
An employment contract may end under the law in several circumstances, including:
- The death of the employee.
- The employee being confirmed as medically or otherwise unable to perform the job.
- The employee exhausting the sick leave permitted under the law.
- Permanent closure of the establishment.
- A final court ruling declaring the employer bankrupt.
Employees Can Also End Their Contracts
Employees have the right to terminate their employment contracts in certain circumstances permitted by law. In specific cases, they may be able to leave without serving the required notice period while retaining their entitlement to end-of-service benefits.
These circumstances include violations of the employment contract or labour law by the employer, physical assault against the employee by the employer or their representative, and situations involving a serious threat to the employee’s health or safety. Such rights remain subject to the conditions established under Kuwait’s labour law.
Employers Can Terminate Employment
Employers may also terminate an employee’s service without prior notice in circumstances specifically permitted by labour law. Contracts of indefinite duration may be terminated by providing the required notice.
However, in certain serious situations expressly covered by law, an employer may terminate an employee’s service without giving prior notice.
Employees Can Challenge Unfair Dismissal
PAM also clarified that employees who believe they have been unfairly dismissed have the right to challenge the termination through the appropriate legal procedures.
The authority said the circumstances surrounding termination are governed by the relevant provisions of Articles 41, 44, 46, 48, 49 and 50 of Kuwait’s Labour Law.
