I recently received a job offer from one of the ministries and I have signed a contract. On reading it later I found out that it says “no end of service gratuity”. Can you please give me details such special contracts. Are such contracts common for expatriates employed by all ministries or is this one only a special contract. Is this end of service gratuity similar to the indemnity in Kuwait’s Labor Law.
Answer: We have answered similar questions over the years but we will again answer the above for the information of our readers.
First of all please remember that the Kuwait Labor Law is only for the private sector and not the public 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.