Fired for Misconduct in Kuwait: Do You Keep Your Indemnity?

A misconduct dismissal in Kuwait does not always cost you your indemnity. Article 41 has two lists. Your employer can end your job without notice or indemnity for the three acts in Article 41(a): a fault that caused it a gross loss, getting the job by fraud, or disclosing its secrets.

For the acts in Article 41(b) your employer may dismiss you, but the law says the dismissal does not deprive you of your indemnity. You can appeal a dismissal to the Labour Circuit (Article 41(c)).

Under Article 41(b) you keep the full indemnity: 15 days' wage for each of your first 5 years, then a month's wage for each year after, capped at 18 months for monthly-paid workers (Article 51). Wage means your basic pay plus the allowances and commissions you receive regularly (Article 55).

For a wage of KWD 600 a month:

After 6 years, a dismissal under Article 41(b) pays KWD 2,100, more than the KWD 1,400 you would get by resigning. A dismissal under Article 41(a) pays KWD 0.

Your employer may not end your service without a reason (Article 46). If a final court judgment finds that you were dismissed arbitrarily, you are owed your indemnity and compensation for the material and moral damage you suffered (Article 41(c)). The law sets no formula for that compensation: the court decides the amount.

Claims start with an application to the PAM labour department, which tries to settle and, if it cannot, sends the case to the Court of First Instance within one month (Article 146). A denied claim is not heard one year after the contract ends (Article 144), so act early.

The Kuwait complaint guide covers each step.

The Kuwait calculator has both options: choose ‘Dismissed for misconduct under Art. 41(b)’ or ‘Dismissed under Art. 41(a)’. If your employer named a reason that is on neither list, choose ‘Terminated by employer’. Enter your wage including regular allowances for the closest figure.