The indemnity rules that govern private sector employment in Kuwait, article by article.
Summaries verified against the Arabic text on 2026-08-29 (three-source cross-validation: almohami.com full text, eastlaws consolidated text, mohamah.net attorney citations).
Oil sector employment is governed by its own statute. The indemnity accrues at 30 days' wage per year for the first five years and 45 days' wage per year thereafter, with no statutory cap. The resignation reduction tiers (below 2 years: none; 2-5 years: one half; 5-10 years: three quarters; 10+ years: full) address resignation after the employer's notice under Article 17, and employer regulations (e.g. KOC) prevail where they are more favorable.
The worker is entitled to an end-of-service indemnity when the service relationship ends, irrespective of the reason for its termination. A worker terminated by the employer — even for a serious fault under Article 41 — remains entitled to the full indemnity, and a worker subject to arbitrary dismissal may additionally claim compensation. (Verified summary, 2026-08-29.)
The indemnity accrues at fifteen days' remuneration for each year of the first five years of service, and at one month's remuneration (30 days) for each additional year, calculated on the last total remuneration (basic wage plus regularly paid allowances — see Art. 55/62 and Cassation case law). (Verified summary, 2026-08-29.)
Where a worker under an UNLIMITED contract (العقد غير محدد المدة) resigns, the indemnity is reduced by length of service: below 3 years — no indemnity; 3 to under 5 years — one half (نصف); 5 to under 10 years — two thirds (ثلثي); 10 years or more — the full amount. The reduction does not apply to resignation from a fixed-term contract. (Verified summary, 2026-08-29; an earlier common reading of "one third" for 3-5 years is incorrect.)