Termination and Notice Period in Kuwait

Kuwait's termination protections are strong on paper, but the kafala system complicates things for expatriates who lose their jobs and their visa simultaneously:

• Notice period: At least 3 months written notice for indefinite contracts — one of the longest in the Gulf.
• Fixed-term contracts end on the agreed date without notice, but early termination by the employer requires compensation for the remaining period.
• Employers cannot terminate for union activity, pregnancy, filing a complaint with PAM, or taking lawful leave.
• Unfair dismissal: Compensation of up to 15 months of salary on top of end-of-service indemnity.
• Employers may terminate without notice or indemnity only for serious misconduct — assault, fraud, or repeated absence without cause.
• When an expatriate is terminated, their residence permit is linked to the employer — they have 90 days to find a new sponsor or leave Kuwait.

Dispute pathway — PAM → Labour Court (Court of First Instance): A termination claim does not go directly to court. The sequence is:

1. Stage 1 — PAM mediation (required): file a written complaint at the Public Authority for Manpower (PAM) Labour Relations Department, in the governorate where you work. PAM schedules a conciliation session, usually within 30 days. Both parties attend. A settlement recorded at PAM is directly enforceable.
2. Stage 2 — Labour Court referral: if PAM mediation fails, PAM refers the case to the Labour Court (Court of First Instance, Labour Circuit) within 2 weeks. No court filing fee is charged to the worker. The court is required to issue a judgment within 30 days of the first hearing (Article 51, Law 6/2010) — this is one of the fastest statutory deadlines in the GCC, although in practice 3-6 months is more realistic.
3. Stage 3 — Court of Appeal: either party may appeal within 30 days. The Court of Cassation is the final level for points of law.

1-year limitation (Article 143): a Labour Court claim must be filed within 1 year of the termination or wage-default event. Time spent in PAM mediation does count toward this year.

Arbitrary dismissal award (Article 46): where the court finds dismissal was arbitrary or retaliatory, it awards compensation on top of end-of-service indemnity, unpaid wages, and the 3-month notice pay. The cap is 15 months of total wage (basic + allowances). For pregnancy, union activity, or PAM-complaint retaliation, the court typically awards at or near the cap.