Employer of Record Guide in 

Kuwait

Annual Leave (Vacation)

Entitlement:

• After 1 Year: 30 calendar days
• Accrual: Earned monthly (2.5 days per month)
• Carry Forward: Up to 60 days maximum accumulation
• Cash Out: Unused leave paid on termination

Scheduling:

• Employee may request specific dates
• Employer approval required
• Cannot be taken during probation period
• Minimum 7 consecutive days if taking 2+ weeks

Sick Leave

Paid Sick Leave:

• First 15 Days: Full salary
• Next 10 Days: Half salary
• Remaining Days: Unpaid (up to 4 months total)

Requirements:

• Medical certificate required after 3 consecutive days
• Government hospital certification preferred
• Cannot be taken during probation period
• Unused sick leave does not carry forward

Maternity Leave

Duration and Pay:

• Total Leave: 70 calendar days (10 weeks)
• Payment: Full salary throughout
• Timing: Can start up to 4 weeks before due date
• Job Protection: Position guaranteed upon return

Additional Benefits:

• Nursing Breaks: 1 hour daily for 6 months after return
• Medical Appointments: Paid time off for prenatal visits
• Extension: Unpaid leave possible with medical certification

Paternity Leave

Standard Entitlement:

• Duration: 3 working days
• Payment: Full salary
• Timing: Within 30 days of birth
• Documentation: Birth certificate required

Hajj Leave

Religious Observance:

• Duration: 21 calendar days
• Frequency: Once during employment
• Payment: Full salary
• Eligibility: Muslim employees only
• Approval: Subject to operational requirements

Other Statutory Leave

Bereavement Leave:

• Immediate Family: 3 days paid
• Extended Family: 1 day paid
• Documentation: Death certificate required

Marriage Leave:

• Duration: 3 days paid
• Timing: Within 30 days of marriage
• Documentation: Marriage certificate required

Summary

Termination Types

Termination With Cause:

• No notice or end-of-service payment required
• Must involve serious misconduct or breach of contract
• Examples: theft, fraud, repeated violations, abandonment of work
• Requires proper documentation and due process

Termination Without Cause:

• Requires notice period or payment in lieu
• End-of-service payment due
• Cannot be discriminatory or retaliatory
• Must follow proper procedures

Notice Period Requirements

Notice periods vary based on employment duration and contract type:

Payment in Lieu:

• Employer may pay salary instead of working notice
• Based on basic salary plus allowances
• Immediate termination with full notice payment

End-of-Service Payment

Calculation Formula:

• Years 1-5: 15 days' salary per year
• Years 6+: 30 days' salary per year
• Partial Years: Prorated based on months worked
• Salary Base: Final basic salary (excluding allowances)

Example Calculation: Employee with 7 years service, final salary KWD 1,000:

• Years 1-5: 5 × 15 days = 75 days
• Years 6-7: 2 × 30 days = 60 days
• Total: 135 days = KWD 4,500

Resignation

Employee-Initiated:

• Same notice periods apply
• End-of-service payment reduced by 50% if resignation
• Must provide written notice
• Cannot resign during busy periods (if specified in contract)

Final Pay Requirements

Timeline:

• Final settlement within 7 days of last working day
• Must include: final salary, unused leave, end-of-service payment
• Deductions allowed: loans, advances, damages (with proof)

Required Documents:

• Salary certificate
• Experience certificate
• No-objection certificate (for visa transfer)

Legal Protections

Protected Categories:

• Pregnancy and maternity leave
• Sick leave usage
• Filing labour complaints
• Union activities (where applicable)

Wrongful Termination:

• Labour court jurisdiction
• Compensation up to 3 months' salary
• Reinstatement possible in some cases

National Public Holidays

Kuwait observes both Islamic and national holidays. Dates for Islamic holidays vary based on lunar calendar.

Fixed Date Holidays:

Islamic Holidays (Dates Vary):

Total Annual Holidays: Approximately 13-15 days depending on lunar calendar

Holiday Pay Rules

Eligibility:

• Must have worked 30 days before the holiday
• Must work the day before and after (unless on approved leave)
• Probationary employees included

Payment:

• Full day's salary for each public holiday
• Based on basic salary plus regular allowances
• Overtime not included in holiday pay calculation

Working on Public Holidays

Compensation:

• Double Time: 2× regular daily rate
• Plus: Compensatory day off within 30 days
• Voluntary: Cannot be forced to work holidays
• Essential Services: Some exceptions for critical operations

Weekend Work

Friday (Weekly Rest Day):

• Double Time: 2× regular rate if worked
• Compensatory Rest: Alternative day off required
• Voluntary: Generally cannot be mandated

Thursday (Common Weekend):

• Many companies observe Thursday-Friday weekend
• Same rules apply if Thursday is designated rest day

Required Documentation

Employment Contract:

• Job title, duties, and responsibilities
• Salary breakdown (basic + allowances)
• Working hours and location
• Leave entitlements
• Termination clauses
• Arabic translation required for labour office

Government Requirements:

• Civil ID: Kuwait civil identification
• Work Permit: Labour office approval
• Residence Visa: Immigration department
• Medical Certificate: Health ministry clearance
• Educational Certificates: Attested and translated

Visa and Work Permit Process

Employer Responsibilities:

• Obtain labour permit before employee arrival
• Provide visa sponsorship
• Complete medical examination arrangements
• Register with social security (if applicable)

Employee Requirements:

• Valid passport (6+ months validity)
• Educational degree attestation
• Medical fitness certificate
• Police clearance certificate
• Passport-sized photographs

Medical Requirements

Mandatory Health Screening:

• Chest X-ray (tuberculosis screening)
• Blood tests (HIV, Hepatitis B, general health)
• Physical examination
• Conducted at approved medical centres
• Results valid for visa processing

Banking and Financial Setup

Bank Account Opening:

• Civil ID required
• Salary certificate from employer
• Minimum deposit varies by bank
• Required for salary payments

Financial Considerations:

• No personal income tax
• Consider international banking for remittances
• Insurance options (health, life, property)

Cultural Orientation

Workplace Culture:

• Respect for Islamic customs and practices
• Ramadan considerations (reduced hours, no public eating/drinking)
• Friday prayer time accommodations
• Conservative dress code expectations
• Hierarchy and relationship-building importance

Language Requirements:

• Arabic helpful but not always required
• English widely used in business
• Contract translations may be needed
• Government documents typically in Arabic

Probation Period Setup

Standard Terms:

• Duration: Up to 100 days (approximately 3.3 months)
• Evaluation: Regular performance reviews
• Termination: 1 day notice during probation
• Benefits: Full benefits apply during probation
• Extension: Not permitted beyond 100 days

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract preparation and translation
• Labour permit and visa coordination
• Medical examination scheduling
• Government registration and compliance
• Payroll setup and social security registration
• Ongoing legal and regulatory compliance

Worker Classification

Kuwait's labour law clearly distinguishes between employees and independent contractors, though the contractor model is less common for expatriate workers due to visa requirements.

Employee Status:

• Requires employer visa sponsorship
• Subject to labour law protections
• Entitled to all statutory benefits
• Employer responsible for social security (if applicable)

Contractor Considerations:

• Difficult for expatriates due to visa requirements
• Limited legal protections
• Must have independent business licence
• Responsible for own visa status

Note: Most expatriate work in Kuwait is conducted under employment relationships due to visa sponsorship requirements.

Industry-Specific Considerations

Oil and Gas Sector:

• Dominant industry with specific safety and technical requirements
• Often offers premium compensation packages
• May have different working hour arrangements
• Strong emphasis on safety training and certification

Financial Services:

• Growing sector with international opportunities
• Requires specific licensing for certain roles
• Conservative dress code and professional standards
• English proficiency typically required

Healthcare and Education:

• Professional licensing required
• Degree attestation and experience verification critical
• May require Arabic language skills
• Government and private sector opportunities

Cultural and Religious Considerations

Islamic Practices:

• Ramadan: Reduced working hours, no public eating/drinking during daylight
• Prayer Times: Accommodations for daily prayers
• Friday Prayers: Extended lunch break common
• Islamic Holidays: Business closures and celebrations

Social Customs:

• Gender Interactions: Professional but conservative approach
• Dress Code: Conservative business attire expected
• Business Relationships: Personal relationships important for success
• Hospitality: Coffee culture and social courtesies valued

Remote Work Considerations

Current Status:

• Limited acceptance compared to Western markets
• COVID-19 increased some flexibility
• Government sector generally requires physical presence
• Private sector varies by company policy

Considerations:

• Visa requirements still apply for remote workers
• Labour law protections remain in effect
• Equipment and internet connectivity employer responsibility
• Time zone considerations for international teams

Legal Framework:

• No specific remote work legislation
• Standard employment law applies
• Employer duty of care extends to home office
• Data protection and confidentiality requirements unchanged

Note: Remote work policies are evolving, and employers should verify current regulations and company-specific requirements.