Article 51 — Kuwait Labour Law indemnity text
For daily, weekly, hourly, or piece-rate workers: 10 days per year for the first five years, then 15 days per year after, capped at one year's remuneration.
Why "kuwait labour law indemnity" matters in disputes
When an employee and employer disagree, PAM and labour courts look straight at Article 51 and supporting articles (55 for remuneration, 70 for leave). Employers sometimes calculate on basic salary only; employees argue gross package. Kuwait Court of Cassation has repeatedly held that fixed regular allowances count toward remuneration if they appear every month on the payslip.
What counts as remuneration under the law
Included
- Basic salary
- Fixed housing allowance
- Fixed transport and food allowances
- Regular uniform bonuses paid to all staff
Usually excluded
- One-off performance bonuses
- Overtime and expense reimbursements
- Temporary hazard or field premiums
Fixed-term vs open-ended contracts
- Fixed-term ends without renewal: Full indemnity if you served more than one year — even when neither side wants to extend.
- Open-ended — employer terminates: Full indemnity (subject to notice rules) unless Article 41 misconduct applies.
- Open-ended — you resign: Tiered reduction: nil under 3 years, then 50%, 66.67%, and 100% at 10+ years.
Article 70 and your final payslip
Labour law indemnity under Article 51 is only one line on your clearance. Unused annual leave under Article 70 is calculated separately at salary ÷ 26 per day. HR should not offset leave against indemnity unless you agreed in writing — they are distinct entitlements.
Private sector vs other employers
Most kuwait labour law indemnity searches come from private-sector expats. Government and oil-company schemes can add internal policies, but Article 51 remains the floor in standard employment. Read more on private sector indemnity in Kuwait.
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