KUWAIT CITY, June 26: Legally, employees are not allowed to perform services for companies other than their sponsor. If your sponsor learns that you are working for another company then they can fire you and/or report you to the labor department.
In addition to an employee being in violation of the labor law, they may be in breach of contract with its sponsor. Most employment or non-disclosure agreements that an employee signs will contain confidentiality, non-disclosure and/or anti-competition language. Thus, if an employee is performing services that are similar to what is offered by the sponsor and/ or the employee is performing services for a client of sponsor (past, present and potential), then they are likely to be in breach of such contract provisions.
Moreover, third parties in Kuwait usually require the employee to represent and warrant that they will be responsible for any disputes, actions and/or claims in connection with the employee providing such services. However, the third party cannot escape liability for illegally hiring an employee and can also be in trouble by the labor department.
It is highly suggested to obtain permission from both your sponsor and labor department prior to commencing services for another company. Most sponsors will consider the type of work and work hours to be performed outside by the employee when determining whether to approve such exception.
By Najmah Mateese Brown, Esq