Unfortunately, the employment law has been one of the biggest issues in Kuwait from an international perspective. Fortunately, however, it has also been one of most improved legal sectors.

Kuwait's Labor Law was changed in 2010 when the government and parliament joined hands in order to come up with a comprehensive legislation to solve the issues that were then discussed. Because Kuwait has a unique demographic pattern where the majority of the population is non-Kuwaiti and hence a migrant working force, the labor law was and is highly important as it governs the circumstances of most expats in Kuwait. Their quality of life and the reason that they have chosen Kuwait as their home.

Therefore, I know I have repeatedly discussed labor law issues, but I think it's highly important to keep discussing these issues, so that maybe one day these discussions will pave the way for new legislations or executive bylaws that will solve these recurring issues.

Question: I am currently on an Article 17 visa and I want to transfer to Article 18 once the project is over, is this possible? From my understanding transfers are no longer available.

Fajer: Before I go ahead and answer, I just want to make it clear that it is not easy writing about visa regulations, as these regulations themselves aren't easy to grasp and keep changing on a regular basis.

As you may have already heard the regulations for transferring visas in Kuwait are becoming stricter but that does not mean that transfers are not available. As of now there are three possible ways for a transfer:

1. If the company the worker wants to transfer to is owned by the same owner as the company he or she is currently working for, regardless if the new job is not for a government contract. Here is a hypothetical example to make it easier for readers to understand: You are currently working for Company X that is building a spaceship for the Kuwait government. After building the spaceship, Company A, a sister company of Company X offers you a job position as a salesman for a store they own. You would be allowed to transfer.

2. If you are transferring to another job position for a government contract then you can do so if your current employer approves and signs a document for transfer that is available at the Ministry of Labor and Social Affairs.

3. If you entered Kuwait to work for the private sector, then you transferred to a government contract visa, you can retransfer back to the private sector regardless of your job. Example, you came to Kuwait to work as a clerk for a store, you then transferred to work for the government to help build a museum, you can then transfer back to work as a waiter (please note that these examples are extremely hypothetical and are just there to help you understand the situation better.)

Question: Is there an easy way of calculating my termination indemnity? Can you please explain how I can calculate it?

Fajer: First of all I would like to make it clear that it is not a lawyer's job to do the actual calculations. Even through the legal procedures lawyers won't usually calculate, instead experts are called in to calculate the final amount (they are usually accountants).

With that said, the principle of the calculations is not that hard to master and I suggest that you calculate so you have a rough idea of your termination indemnity amount. This will depend on whether you have been terminated or you have terminated the contract.

In the event where you are terminated:

Less than 5 years of employment - 15 days pay of your salary

Between 5 to 10 years of employment - 30 days pay of your salary

The total amount should not exceed an amount that is more than one year and a half of salary.

In the event where you have resigned and your contract was an indefinite term contract.

3-5 years of employment - half of the indemnity mentioned above

5-10 years of - two thirds of the indemnity mentioned above

10 plus years - you will be entitled to your entire indemnity

Question: I just started working at a new company and although my contract states that my salary is KD 800, my work permit says my salary is KD 600. Is that common?

Fajer: From my experience this is very common. Is it right though? No. Absolutely not. Fortunately though in the case of a labor dispute between the employee and the employer, the employee will have the right to prove that his/her salary was not as written in the work permit and the court shall take that into account. This makes a huge difference when termination indemnity, leave balances and so on are calculated. The court shall take into account the last six months' pay.

For any legal questions or queries, email [email protected].

By Attorney Fajer Ahmed