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Justice GCC > Legislation > Kuwait Authority Sets Out Conditions for Lawful End to Private Sector Contracts
Legislation

Kuwait Authority Sets Out Conditions for Lawful End to Private Sector Contracts

NewsDesk
Last updated: August 25, 2026 9:54 pm
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Kuwait PAM Clarifies Contract Termination Rules | AI-Generated Image
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Kuwait’s Public Authority for Manpower issued an advisory that clarifies termination rules for private sector contracts under the Labour Law, according to Arab Times. The guidance specifies that contracts may end automatically through operation of law in defined situations that include the worker’s death, a proven inability to perform required duties, exhaustion of all statutory sick leave, permanent closure of the establishment or a final court judgment declaring the employer bankrupt. PAM referenced Articles 49 and 50 of the law for these provisions while stressing the need for both parties to follow established procedures. The authority framed the advisory as a means to promote awareness of obligations that support equitable workplace relations across the sector.

Workers hold the right to terminate contracts without providing notice and still receive end-of-service benefits in specific circumstances, Arab Times reported, citing the PAM document. These include instances where the employer breaches the employment contract or Labour Law provisions, where the employer or a representative commits an assault against the worker or where continuing the role poses a serious threat to the worker’s safety or health, subject to legal verification. The advisory noted that such exits must align with applicable requirements to preserve entitlements. PAM positioned this guidance within its Know Your Rights campaign to help employees navigate disputes effectively.

Employers may also end a worker’s service without notice in cases permitted by the Labour Law, according to the authority’s advisory covered by Arab Times. For contracts of indefinite term, termination can proceed after delivery of the legally mandated notice period, while immediate dismissal applies to serious violations outlined in statute. Workers retain the ability to contest any dismissal they view as unjustified through appropriate channels. The Public Authority for Manpower referenced Articles 41, 44, 46 and 48 as the basis for employer actions depending on individual case details.

The advisory forms part of a series PAM has released to inform the labor market, where Central Statistical Bureau figures show the total workforce reached 3.26 million by the end of June 2026. Public Authority for Civil Information data places expatriates at approximately 2.8 million of that total, representing 70 percent of the overall population and the majority of private sector employees. PAM statistics from the first half of 2025 indicate the authority handled more than 20,000 labor complaints alongside 21,000 absenteeism and termination reports during that period. These numbers underscore the scale of workplace transactions that rely on clear termination rules to prevent disputes.

Kuwait’s Private Sector Labour Law No. 6 of 2010 establishes the framework for these rights and procedures, a statute that PAM has repeatedly highlighted in public communications. The authority has pursued enforcement actions in recent months, including legal steps against companies for unpaid wages that violated contract terms. Such cases demonstrate how the termination provisions intersect with broader protections for end-of-service indemnities and notice periods. Officials continue to direct employers and workers toward official platforms for resolving differences before escalation.

PAM urged full familiarity with the outlined procedures to foster a fair and safe working environment, the Arab Times report stated. The guidance encourages proactive review of contract terms and legal obligations by all parties before initiating termination steps. This approach aligns with the authority’s wider efforts to reduce labor complaints through education rather than reactive intervention alone. Updated information on these rules remains available through PAM’s official channels for both expatriate and national employees.

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ByNewsDesk
Justice GCC NewsDesk is the desk responsible for Justice GCC's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.
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