Termination usually means 100%
After at least one year of continuous service, employer-initiated termination (without proven gross misconduct under Article 41) triggers full Article 51 indemnity. The resignation percentage table does not apply — that is only when you choose to leave under an open-ended contract.
When termination pays less — Article 41
If the employer terminates for gross misconduct (theft, assault, serious negligence, etc.) under Article 41, indemnity may be reduced or denied. The employer must document the case. If you believe the Article 41 label was misused to avoid paying EOSB, challenge it through PAM or labour court.
Termination vs resignation — same person, different money
Take a worker with 4 years of service and 500 KWD salary. Gross indemnity is about 1,154 KWD. Terminated: receives ~1,154 KWD. Resigns: receives 50% → ~577 KWD. Our homepage calculator shows both numbers side by side so you can see the gap before negotiating an exit package.
Contract non-renewal counts as termination
When a fixed-term contract expires and the company chooses not to renew, you are typically entitled to full indemnity — not the resignation tiers. Many expats in Kuwait discover this only when HR tries to treat non-renewal as a voluntary departure.
Notice period and indemnity
Open-ended contracts usually require three months' written notice from either side. Indemnity is separate from notice pay. Your settlement should list indemnity, notice compensation (if applicable), unused leave, and any outstanding salary as distinct items.
Related guides
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