The Public Authority for Manpower advisory reported Monday by Arab Times lists several situations in which an employment contract ends automatically by operation of law. These include the death of the worker, a proven medical inability to perform job duties, exhaustion of sick leave, permanent closure of the establishment or a final court judgment declaring the employer bankrupt. PAM encouraged both workers and employers to familiarize themselves with these provisions. Such awareness can reduce disputes in a labor market that depends heavily on clear regulatory guidance.
According to the advisory, workers may terminate their employment contracts without prior notice while retaining end-of-service benefits in cases of employer breach of contract or the Labour Law, physical assault by the employer or representative, or serious threats to the worker’s safety or health, provided legal requirements are met. The authority noted that documentation of such incidents supports any subsequent proceedings. Workers retain full rights to pursue these options when conditions arise. The framework protects employee interests while maintaining procedural integrity.
Employers hold corresponding rights to terminate service without notice in serious cases permitted under the Labour Law, the advisory indicated, while indefinite-term contracts generally require advance notice except in specified grave situations. Employees believe a dismissal is unjustified may challenge it through designated channels. This mechanism provides balance between operational needs and individual protections. PAM referenced the importance of following exact procedures in every instance.
The advisory specifically cited Articles 41, 44, 46, 48, 49 and 50 of Kuwait’s Labour Law as governing the range of termination circumstances and related obligations. These articles establish the legal foundation for calculating dues, issuing certificates and handling disputes. PAM reminded all parties that adherence prevents unnecessary litigation and ensures proper settlement of accounts. The guidance forms part of broader educational initiatives on workforce regulations.
Central Statistical Bureau figures show household workers numbered approximately 784,000 at the end of the first quarter of 2026, accounting for over 25 percent of the expatriate labor force, while Kuwaiti workers comprised about 14 percent of the total.[[1]](https://kuwaittimes.com/article/48524/kuwait/other-news/household-workers-account-for-26-of-kuwait-expat-labor-force/) This composition underscores the advisory’s relevance across a workforce where non-nationals fill most private-sector roles. The data highlights why transparent termination rules matter for stability in multiple industries. PAM’s communication targets both employers and foreign employees who form the majority of those affected by contract endings.
PAM urged both employers and workers to understand their legal rights and obligations. «Termination of the employment contract has causes and procedures,» the advisory emphasized, noting that awareness of the law helps protect the rights of both parties. The Labour Law further stipulates notice periods of three months for monthly-salaried staff and one month for others on indefinite contracts, with compensation due for noncompliance, according to regulatory summaries. These elements combine to promote equitable outcomes when separations occur.
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