Jarallah Seeks Leniency for Struggling Firms as Kuwait Tightens Wage Controls

KUWAIT CITY, Oct 22: Dean of Kuwaiti Journalism and Editor-in-Chief of the Arab Times and Al-Seyassah newspapers Ahmed Al-Jarallah commended First Deputy Prime Minister and Minister of Interior Sheikh Fahad Al-Yousef for quickly responding to public grievances and requests, reports Al-Seyassah daily. Speaking at a forum titled, “The Wage Payment System: Protecting the Workforce and Ensuring a More Compliant Market,” Al-Jarallah acknowledged that explicit infractions were found among some of the nearly 10,000 firms impacted by recent enforcement actions. He advocated for a compassionate approach in relations between employers and employees, provided it operates strictly within legal boundaries to safeguard the rights of all parties involved. He emphasized that numerous businesses face exceptional hurdles that merit careful case-by-case evaluation prior to imposing penalties. He said various enterprises contend with severe liquidity constraints, bank liabilities, and operational obstacles that impair their capacity to disburse wages on time. Accordingly, he called for classifying companies according to their operational realities and exercising leniency toward business owners facing legitimate financial distress. He talked about labor subsidies, indicating that several businesses were surprised when funding for their staff was suspended following non-payment of salaries.

He asked if the difficulties encountered by employers are being considered, stressing the importance of differentiating between individual situations. On farm laborers in Wafra and Abdaly, he challenged the presumed connection between cash wage payments and money laundering offenses. He clarified that certain agricultural owners make bank withdrawals solely to hand out cash earnings directly to their workers, urging the authorities to conduct thorough inquiries into these financial practices prior to drawing conclusions. In response, Sheikh Fahad Al- Yousef stated “having known you since 1979, this is the first time I have seen you this worked up.” He explained that managing around 10,000 enterprises necessitates verification protocols, as it is impossible to evaluate any single business without performing reviews. He said one cannot prioritize the interests of Kuwaiti citizens at the expense of delaying the dues owed to foreign workers. He asserted that “compassion must extend to everyone, and an employer bears the responsibility of paying their employees’ wages—a humanitarian and legal duty.”

He also pointed out that “issues such as human trafficking, money laundering and non-payment of salaries pose serious challenges, with repercussions for Kuwait’s international standing.” He then stressed the necessity of “not tolerating violations or allowing them to persist. The examination of company status revealed instances where business owners claimed to be unaware of the details of companies registered in their names or indicated that they granted power of attorney to others to manage them. The core problem lies in the failure of certain entities to manage their files as required. The continuation of such practices could expose those responsible to legal accountability.” Addressing Al-Jarallah, he said: “You are one of the most long-standing economic figures in the country, you ought to be more attuned to the situation and needs of the workforce.” He called for “consideration toward workers who leave their home countries and families to work in Kuwait— individuals who face significant living and educational obligations toward their children.” He indicated that “the state provides Kuwaiti citizens with various forms of support and benefits, whereas expatriate workers face rising food prices and living costs—increases that are not matched by the salaries of some of these workers.” He concluded “compassion is not limited to any one nationality. Protecting the rights of workers and ensuring the payment of their salaries are duties that must not be taken lightly.”