Both indefinite and fixed-term contracts are permitted in Kuwait.
Salaries must be stated in Kuwaiti dinars (KWD) in employment contracts.
Regular employment contracts for Kuwaiti and Gulf Cooperation Council nationals must include the following:
- Job title and responsibilities
- Performance standards
- Salary and leave entitlement
- Contract length (if applicable)
- Termination conditions
Unlike Kuwaiti employees, non-Kuwaiti nationals must sign a government employment contract to obtain a work permit and residence visa.
Fixed-term contracts:
Where an employment contract is for a fixed period, it terminates automatically at the end of the period, but if both parties then continue to implement it, it is deemed to be renewed indefinitely under the same terms and conditions.
If the contract is terminated prematurely without justifiable cause, then aside from the end-of-service gratuity described below, the employee will also be entitled to compensation for the months remaining in their contract. The amount of compensation is not prescribed by the Labour Law but is usually set at three months to six months’ salary by Kuwaiti courts.
A fixed-term contract should not exceed 5 years in cumulative duration, and it should also not be less than 1 year.
