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Special Contract - No end of service gratuity

I have been working in Kuwait for many years and recently decided to change jobs. I have got an offer from the Ministry of Defence and am planning to a contract, which is good but says no end of service gratuity. Isn’t this against the Kuwait Labor Law.

Moreover, can you provided me with details on such special contracts and whether these are legal. Are such contracts common for expatriates employed by all Ministries or is this one only a special contract.

Shouldn’t the end of service gratuity in the ministries be similar to the indemnity in the private sector, which goes according to the Kuwait’s Labor Law.

Name withheld
We have answered similar questions in the past and the answers to these questions have been posted on the Arab Times website but in case you have not read these answer, we will reproduced the one which specifically answers your questions for your benefit.

First of all please remember that the Kuwait Labor Law is only for the private sector and not the public sector.

The ministries as such come under the public sector and thus they have their own set of rules and regulations which are different from the Kuwait Labor Law for the private sector.

Secondly, a majority of the new contracts signed by the ministries are special contracts and all the terms have to be negotiated by both the parties.

Most of such contracts nowadays make no provision for gratuity or indemnity. Both gratuity and indemnity are the same but the ministries go according to the special contracts and can’t be made to pay anything in this regard unless there is a specific mention of such a payment in the contracts. In the private sector, however, it is against the law to mention that there will be no indemnity.

Even if there is such a provision and you sign the contract, it is against the Kuwait Labor Law and the contract is not only declared invalid, you are also paid the indemnity as mentioned in the law and nothing less.

In the public sector, if the special contracts mention “ no indemnity” these are legal and can’t be challenged. That is why it is important to read all the clauses in these special contracts to avoid running into a situation later on which leaves you no way out of your predicament.

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