Termination & Notice Periods in Kuwait
What Article 44 requires: how much notice each side owes, paying salary in lieu, and when dismissal without notice is lawful.
For contracts of unlimited duration, Article 44 lets either party end the employment with written notice: at least three months for workers paid monthly, and at least one month for everyone else.
The notice can be bought out — the party ending the contract may pay the other the notice-period salary instead of observing it. Through a worked notice period, salary and benefits continue as normal.
Article 41 lists the narrow cases — such as gross misconduct — where an employer may dismiss without notice or indemnity. Outside those cases, a dismissed worker is owed notice (or pay in lieu) and end-of-service indemnity.
Notice must be in writing. A conversation, however clear, does not start the clock, and the date the written notice is delivered is the date everything else is measured from. Where a dispute reaches a tribunal it is usually this date — not the substance of the decision — that is being argued about.
Pay in lieu is an alternative to working the notice, not a discount on it. Choosing to pay rather than to have the employee work out three months means paying three months, and the employment relationship — including accrual of service for indemnity — is generally treated as continuing through the notice period. Budgeting for a fraction of it is a common and expensive misreading.
Key facts
- Monthly-paid workers3 months’ written notice
- Other workers1 month’s written notice
- Pay in lieuAllowed — notice-period salary instead
- Dismissal without noticeOnly the Article 41 misconduct cases
- Who can give noticeEither side — employer or worker
Worked example
A monthly-paid employee earning 800 KWD is given written notice on 1 March. Three months takes the relationship to 31 May. If the employer prefers they stop immediately, the notice is paid in lieu at 800 × 3 = 2,400 KWD, and service to 31 May still counts towards end-of-service indemnity and accrued annual leave — both of which are calculated on the later date, not on 1 March.
What people get wrong
Giving notice verbally
Article 44 requires written notice. Until something is delivered in writing the notice period has not begun, however unambiguous the conversation was.
Treating pay in lieu as a smaller obligation
Paying in lieu costs the same as working the period. It buys an immediate departure, not a reduction — and service usually continues to accrue across the notice period regardless.
Applying the one-month rule to a monthly-paid worker
Three months applies to workers paid monthly; one month applies to the others. Getting this the wrong way round understates the obligation by two months of salary, per person.
Frequently asked questions
How much notice is required to terminate employment in Kuwait?
On an unlimited contract: written notice of at least three months for monthly-paid workers, and at least one month for others. Either party can give it.
Can the employer pay instead of the notice period?
Yes. Either party may replace the notice period with a payment equal to the worker’s salary for that period.
Can I be dismissed without any notice?
Only in the specific cases listed in Article 41 — for example gross misconduct. Dismissal under Article 41 can also forfeit the end-of-service indemnity.
Do I still get indemnity if I resign with notice?
Yes, subject to the service-length tiers: nothing before 3 years of service, half from 3–5 years, two-thirds from 5–10, and the full amount from 10 years.
Does service keep accruing during the notice period?
Generally yes — the relationship continues through notice, whether it is worked or paid in lieu, so indemnity and annual leave keep accruing to the end of the period rather than stopping on the day notice was given.
Can an employee resign with less notice than they were given?
The notice obligation runs in both directions under Article 44. An employee resigning from an unlimited contract owes the same period, and leaving early can expose them to a claim for the unworked portion.
This guide is general information based on Kuwait Labor Law No. 6 of 2010. It is not legal advice — for specific cases, consult the Public Authority of Manpower or a legal professional.
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