22/07/2026
22/07/2026
KUWAIT CITY, Jul 22: The Public Authority for Manpower (PAM) has outlined the legal conditions governing the termination of employment contracts in Kuwait, explaining the rights and responsibilities of both employers and employees under the Labor Law.
In an awareness post published through its official accounts, PAM explained that an employment contract can end through several legally recognized methods, including termination by the employer, termination by the employee, or automatic termination by operation of law.
Employer’s right to terminate contractPAM stated that an employer has the right to terminate an employee’s service in cases permitted by the Labor Law. This includes ending an open-ended employment contract by providing the required notice period, as well as dismissal in serious cases specified by law.
The authority emphasized that dismissal decisions must comply with legal provisions. If an employee believes that the termination decision was unjustified or unlawful, they have the right to challenge the decision through the appropriate legal channels, in accordance with Articles 41, 44 and 46 of the Labor Law.
Employee’s right to end employment contractPAM also clarified that employees have the right to terminate their employment contracts according to the procedures established by law.
The authority noted that employees may leave their jobs without notice and remain entitled to their end-of-service benefits in specific circumstances. These include cases where the employer fails to fulfill contractual or legal obligations, commits an assault against the employee, or when continuing work poses a serious danger to the employee’s health or safety.
These rights are provided under Article 48 of the Labor Law.
Cases where contract ends automaticallyPAM explained that employment contracts may also terminate automatically by law in certain situations, without requiring action from either party.
These cases include:
- Death of the employee
- Proof that the employee is unable to perform the required work
- Continuation of illness after the employee has exhausted the legally permitted sick leave period
- Permanent closure of the establishment
- Issuance of a final bankruptcy judgment against the employer
The authority said these provisions fall under Articles 49 and 50 of the Labor Law.
PAM stressed that understanding the legal provisions related to employment contract termination helps protect the rights of both workers and employers and ensures compliance with Kuwait’s labor regulations.
