Kuwait Government Allows Salary Cuts In Private Sector, Maximum 50% cut allowed
Kuwait Government has revised its plan to amend the Labor Law in the Private Sector No. 6/2010 to allow private sector companies whose business activities have been affected by COVID-19 crisis to agree with workers to reduce their salaries during the pandemic.
So far around more than 250,000 workers are threatened with lay off if the repercussions of the current coronavirus pandemic continues to worsen as it is currently happening. Expatriates in Kuwait make up more than 90% of the private sector’s workforce.
Article 1: Draft law allows the minister in charge to approve with the employers because of the precautionary measures and measures taken by the state to prevent COVID-19 pandemic which has affected the activity totally or partially stopped.
New draft law to address the effects of COVID-19 crisis on the labor market No. 2020/86, which will be in effect during the period of precautionary measures taken by the state and its provisions will end with the end of measures taken to confront the COVID-19 pandemic.
It permits employers to agree with the employees that they have to reduce the wage during the period of business activity by a maximum of 50 % during the crisis, provided that the actual working hours are taken into consideration for the paid wage, and without prejudice to the minimum wage, all employment dues are calculated based on the wage due to them before reducing it within the service period, and the determined support is given as well as the unemployment allowance for those who address their plans in order to ensure protection for national employment.
The coronavirus pandemic has taken a worrying turn in Middle East with more confirmed cases among expatriates.
If you are involved in a commercial dispute with a Kuwaiti company or individual, you may be prevented from leaving the country pending resolution of the dispute.
Meanwhile, A decision was issued by Kuwait’s Ministry of Interior to allow expatriates who have valid residency visa to stay outside the country for 12 months, instead of 6, due to the exceptional circumstances arising out of the coronavirus pandemic.
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