17/05/2026
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17/05/2026
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KUWAIT CITY, May 17: The Labor Court obliged a private company to cancel the residency permit of an employee and transfer him to another employer without the need for the consent of the current sponsor, as the defendant company failed to pay his salary for six consecutive months. The court also ordered the company to pay the employee all his outstanding wages and compensation for overtime. Case details revealed that the employee filed a complaint, stating that he had worked in the company for four years. However, his employer stopped paying his salary for several months, thereby putting him in difficult living conditions and compelling him to borrow money and rely on assistance from his colleagues.
He repeatedly requested his unpaid salaries without any response, then he applied for the transfer of his residency permit to another employer, as per the regulations of the Public Authority for Manpower (PAM) regarding delayed salaries. He told the court that he was surprised when the company filed an absconding report against him after he requested for his dues. He added that the company also rejected his request to transfer to another employer, citing his knowledge of trade secrets and fear that he might join a competitor. He presented documents to the court, including his employment contract, bank statements proving the non-payment of salaries, a copy of his labor complaint, and correspondence with the company regarding his claim for unpaid salaries.
On the other hand, the company argued that the employee left work voluntarily, demanded that he reimburse the recruitment, training and travel expenses, and reiterated its rejection of his request to transfer to a competitor. In its ruling, the court affirmed that the employer’s refusal to pay salaries is a breach of contract; hence, the employee has the right to transfer to another employer without the consent of the current sponsor.
The court stressed that the salary is a fundamental right that should not be breached. It then ordered the company to give to the employee his unpaid salaries for six months, the full indemnity for four years of service, cash equivalent of unused leave days and overtime compensation. The court rejected all the arguments of the company and its requests regarding the absconding report, recruitment expenses and transfer of the employee.
By Jaber Al-Hamoud Al-Seyassah/Arab Times Staff