With growing concerns among private-sector employees in Kuwait over recent policy changes to compensatory leave entitlements, it is important to clarify what the law actually says and how it applies in practice. Some companies often change polices from the original contract signed between the employee and the company. However, both employment contracts and Kuwait’s Labour Law establish clear protections that prevent employers from unilaterally withdrawing such rights. This article explains the legal framework governing compensatory leave, outlines employees’ statutory and contractual protections, and provides practical steps for those affected by changes to their company’s policy.
Question:
Dear Arab Times,
I would like to request your clarification regarding the applicability of compensatory leave under my current employment terms. According to my employment contract and the company’s HR policy, compensatory leave is granted for work performed beyond the standard working hours or on additional days. This practice is also consistent with Kuwait’s Labor Law, which provides for compensatory rest in cases of extra working time.
However, I have recently been informed that this procedure has been revised and that employees in Kuwait will no longer be entitled to compensatory leave. I would therefore appreciate your legal opinion on whether this change is consistent with:
- The provisions of my employment contract; and
- The relevant articles of Kuwait’s Labor Law governing overtime and compensatory rest.
Answer:
No — your employer generally cannot unilaterally remove a contractual right to compensatory leave if the employment contract or HR policy explicitly guarantees it, and they also cannot avoid the statutory protections under Kuwait’s Labour Law (notably the rules that require pay + an alternative day off for work on weekly rest days or public holidays)
What the law actually says (key points)
Overtime on ordinary workdays: The Labour Law (Law No. 6/2010) allows the employer to require overtime in limited circumstances and requires the employer to pay an overtime premium of 25% extra for overtime hours. The employer must keep a special overtime record.
Work on a weekly rest day: If an employee works on their weekly rest day, the law requires at least 50% extra pay plus an alternative (compensatory) day off. The law explicitly provides for an additional compensatory day when work is performed on the weekly rest day.
Work on official holidays: If the employee is required to work on an official holiday, the law requires double wage plus an alternative compensation day (i.e., compensatory leave).
Annual limits: Overtime has daily and yearly caps (e.g., max 2 extra hours per day; caps per year). Employers must maintain records.
How does that apply to your situation?
Contract vs. law: Where the contract or HR policy gives you compensatory leave for extra hours, that is a contractual entitlement. The employer cannot unilaterally remove or reduce contractually guaranteed benefits without your consent (or a lawful variation process). Any unilateral change that reduces your rights is likely a breach of contract. (Kuwait labour practice requires employers to follow written contracts and the law; statutory minimums are non-negotiable.)
Statutory minimums cannot be removed: For weekly rest days and public holidays, the law itself requires a compensatory day (or equivalent) plus the pay premium — the employer cannot lawfully stop giving compensatory leave for those cases. For ordinary overtime on working days, the law requires pay (25% extra); some employers sometimes agree with employees to give time-off-in-lieu instead of pay, but that must be by mutual agreement and should be documented — it cannot be forced if it reduces statutory pay entitlements.
If your HR policy provides broader compensatory leave than the law: e.g., your company grants paid compensatory leave for extra shifts even where the law only requires pay, that policy is part of your contractual/employee entitlements. The employer can’t simply cancel that benefit without agreement or without offering an equivalent (or better) arrangement in writing.
Practical next steps (what you can do now)
Check documents — collect: your employment contract, the HR policy that promises compensatory leave, any written notices about the new procedure, payslips showing overtime, and any roster/attendance records.
Ask HR in writing — send a short formal query. Request clarification of the legal basis and effective date for the change, and whether the company expects signed consent from employees. Keep the reply.
File an internal grievance if HR’s reply is unsatisfactory. Follow the company grievance procedure and keep evidence of dates and communications.
If unresolved, complain with the Public Authority for Manpower (PAM) — PAM handles private-sector labour disputes and enforces the Labour Law. You can submit your supporting documents and request enforcement of contractual/statutory rights. (PAM guidance and worker leaflets reiterate overtime/compensation rules.)
Civil/labour claim — if PAM mediation fails, you may bring a labour court claim for breach of contract / unpaid entitlements. Keep records.
For more legal queries, visit our legal section. For new queries, feel free to email [email protected]
