Kuwait Times

Published Date: December 24, 2009
By B Izzak, Staff Writer

KUWAIT: The National Assembly yesterday unanimously passed the new labour law in the private sector with much improved rights and benefits after years of deliberations and discussions and obstructions at some stages. All Cabinet members present voted for the law and Social Affairs and Labour Minister Mohammad Al-Afasi said it will be implemented after several months after preparing the necessary by-laws.

A number of MPs, led by MP Rola Dashti, however tried in vain to reduce benefits included in the law's first reading by tuning down those benefits through amendments during the second reading. Dashti warned that passing the law in its current form would overburden private sector companies with additional costs which will be reflected in increased costs of services and higher prices of commodities.

Others like MP Salwa Al-Jassar said mostly expatriates would benefit from the new rights since more than 96 percent of the workforce in the private sector are foreigners. Minister Afasi insisted that there must be no discrimination between labourers on the basis of nationality because this is a breach of international law and the International Labour Organization's principles. Kuwait is home to 2.3 million foreigners, more than two-thirds of them Asians, and 1.1 million citizens.

The new law is a major advance on the existing law which was issued in 1964 and undergone limited amendments since then. It has improved rights of workers over annual leave, indemnity rules, public holidays and sick leaves in addition to better conditions for dismissals or resignations. The law grants 30 days of annual leave to all employees from the start of their contract instead of just 15 days in each of the first five years that increases to 21 days a year after that in the old law. It has increased p
ublic holidays to 13 days from only eight, including three days for Eid Al-Fitr and four days for Eid Al-Adha, while also officially including the Liberation Day as a public holiday.

Rules for end of service indemnity have been improved in favour of workers although the amounts will remain unchanged. According to the law, workers get half of the indemnity if they resign in the first five years of service, two-thirds when they resign after completing five years of service and full indemnity after working for 10 years. The value of indemnity is half month's salary for every year of service until five years and one month for each year afterwards. The total indemnity however must not excee
d the pay of 18 months regardless of the years of service.

Under the new law, women cannot be asked to work between 8 pm and 7 am with the exception of certain professions to be determined by the minister of social affairs and labour. The law gives women 70 days of paid maternity leave and an additional four months of unpaid leave for breastfeeding. Employers are not allowed to terminate the service of women during this period.

The new law states that before dismissing workers, the employer must give a notice of three months instead of 15 days in the old law and the same applies to workers who resign. Employers can't sack their workers while they are on leave. According to the law, the payment of the monthly salary must be made before the 7th of the month. The law requires the minister to determine minimum wages for certain labour categories.

The law maintained the same working hours of 48 hours weekly provided they do not exceed eight hours daily. Workers are entitled to a weekly rest day but if working conditions require him to work on those days, he must get a 50 percent additional day's pay and must be compensated with another rest day. In case workers are asked to work on public holidays, they get double pay and should be compensated with another day.

Sick leaves have been increased to 15 days with full pay instead of six in the old day, 10 days with a three-quarters pay instead of six, 10 days with half pay instead of six and 10 days with a quarter pay instead of six. After that, they get 30 days of unpaid sick leave instead of 10 days. Workers are entitled to a 21-day hajj leave after spending one year of service, provided they have not performed hajj before. Muslim women whose husbands die get a mourning leave for four months and 10 days while non-Mu
slim women get 21 days.

The minister told reporters after passing the law that the ministry will continue with its quest to gradually abolish the sponsorship system. He said that at present, workers are free to move to other employers after completing three years of service, adding that the ministry is working to allow certain professionals to sponsor themselves in the near future. Nevertheless, the law requires the government to set up a public authority that takes on the responsibility of recruiting workers from abroad. But Afa
si added that the new law will not be retroactive in its effect.