Global HR Compliance in Kuwait

Expanding your business operations into Kuwait requires a thorough understanding of the country’s labor laws to ensure compliance and effective workforce management. This guide provides an overview of key aspects of employment in Kuwait, including employment contracts, termination procedures, severance pay, probation periods, working hours, overtime, leave entitlements, and other essential employment conditions.

Employment Contracts in Kuwait

Employment agreements in Kuwait can be either for an indefinite or a fixed term. Written contracts are recommended for clarity, although verbal agreements are also legally valid. To be enforceable, contracts should include the following at minimum:

• Full names and details of both parties
• Job title and description
• Remuneration and benefits
• Contract duration (if applicable)
• Working hours and leave entitlements
• Termination conditions

If a fixed-term contract continues past its original end date without renewal, it is treated as an indefinite-term contract by default. Employment contracts can include a probationary period of up to 100 days.

Working Hours and Overtime

Standard working hours in Kuwait are 8 hours per day and 48 hours per week, over 6 days. During Ramadan, Muslim employees may work reduced hours, typically 6 hours per day.

Overtime is permitted under specific circumstances and must be compensated as follows:

• 125% of the hourly rate for extra hours on normal workdays
• 150% for work on rest days or public holidays

Employers must request written consent for overtime, and workers cannot exceed 2 hours of overtime per day, 90 days per year, or 180 total overtime hours annually.

Probationary Period

The probation period in Kuwait must be stated in the employment contract and cannot exceed 100 days. Either party may terminate the contract during probation without notice or compensation, but compensation for days worked must still be paid.

Leave Entitlements

Annual Leave

Employees are entitled to 30 days of paid annual leave after completing at least 9 months of service. Public holidays, sick leave, and weekends are not counted against annual leave. Leave can be split at the employer’s discretion after the first 14 days, and workers are entitled to proportional leave during the first year.

Employees who have served two continuous years may also be granted 21 days’ paid leave for the Hajj pilgrimage, provided they have not performed it before.

Sick Leave

Employees are entitled to a total of 75 days of sick leave per year, structured as:

• 15 days at full pay
• 10 days at 75% pay
• 10 days at 50% pay
• 10 days at 25% pay
• 30 days without pay

A medical certificate is required for sick leave approval.

Maternity Leave

Female employees are entitled to 70 days of fully paid maternity leave. Following this, they may take up to 4 additional months of unpaid leave to care for the child. During maternity leave and related absences, employees cannot be dismissed.

Paternity Leave

There is no statutory entitlement to paternity leave in Kuwait.

Minimum Wage

Kuwait’s minimum wage for the private sector is set at KWD 75 (approximately USD 245) per month. The minimum wage does not apply uniformly to all sectors and excludes domestic workers, who are subject to separate regulations.

Termination and Notice

Termination rules differ depending on contract type and reason. Employers must have a valid reason to terminate an employee under indefinite-term contracts.

Notice Periods

• Three months’ notice for employees paid monthly
• One month’s notice for employees on other pay cycles

Failure to provide notice requires the party to pay compensation equivalent to the wages due for that period.

Grounds for Dismissal Without Notice

Employers may terminate employment without notice or severance pay in cases such as:

• Fraud or deception during hiring
• Breach of contract
• Serious misconduct or endangerment
• Repeated failure to follow instructions

Unlawful Dismissal Protections

Employees cannot be dismissed arbitrarily or for discriminatory reasons. Dismissals during maternity leave or while the employee is on authorised sick leave are prohibited. If an employee is dismissed without valid cause, they may challenge the termination with the Ministry of Labour.

Severance Pay

Severance is mandatory for employees unless they are dismissed for cause. It is calculated as follows:

• 15 days’ wages per year for the first 5 years
• 1 month’s wages per year for each additional year
• Maximum payout: 1.5 years of wages for monthly-paid workers
• Daily/hourly workers: 10–15 days’ pay per year, capped at 1 year of wages.

Immigration and Work Permits

Employing foreign nationals in Kuwait requires a local sponsor and a valid work permit. Employers are responsible for securing and renewing the work permits through Kuwait’s Ministry of Interior. Employees cannot work for another employer without prior approval.

Acumen International does not directly process immigration documents but can coordinate compliant sponsorship structures with trusted local partners.

How Acumen International Can Help You Hire in Kuwait

Flexible Hiring Without Entity Setup
Acumen enables you to legally employ staff in Kuwait without setting up a local entity. We act as Employer of Record, assuming legal responsibility for employment.

Compliant Employment Structures
We ensure your employment arrangements comply with Kuwaiti labour laws — covering contracts, taxes, social security, and dismissal rules.

Payroll and Benefits Administered Locally
We process payroll, employee benefits, and statutory contributions on your behalf, eliminating administrative overhead while ensuring timely, accurate payments.

Custom Support for Strategic Hires
Whether hiring long-term technical specialists or performance-based staff, we align employment structures with your global workforce strategy.

Support for International Staff Relocation
Need to hire foreign talent in Kuwait? We coordinate immigration and work authorisation logistics through vetted local channels.

Global Payroll Calculator
Estimate total employment costs in Kuwait — including gross-to-net pay and employer obligations—via our Global Payroll Calculator.

One Trusted Partner Across 190+ Countries
Whether you’re entering a single market or scaling across regions, Acumen International serves as your unified partner for compliant global employment.