Filing an Unfair Dismissal Lawsuit in Kuwait: Procedures, Evidence and Compensation

Have you suddenly received a decision terminating your employment, been pressured into signing a resignation that does not reflect your true intention, or been dismissed shortly after claiming unpaid salary, leave, or another employment right?

Before signing any resignation or final settlement, keep copies of your employment contract, termination letter, and all correspondence related to the incident. Your actions after the employment relationship ends may affect your ability to prove your rights before the competent authorities.

This article explains when termination may constitute unfair dismissal in Kuwait, how it can be proven, the procedures for filing an unfair dismissal lawsuit in Kuwait, the legal time limit for bringing a claim, as well as employee rights, dismissal compensation, and how end-of-service benefits are calculated.

Procedures for Filing an Unfair Dismissal Lawsuit in Kuwait

The facts and documents should be organized from the beginning because the legal characterization of the termination affects the type of claims and compensation that may be requested. The procedures are as follows:

1. Consult a Lawyer to Review the Dismissal Decision

The first step is to review the employment contract, termination letter, any resignation, investigation records, correspondence, and salary statements.

An employment lawyer can determine the correct legal characterization of the end of the employment relationship and whether the case involves unfair dismissal, termination without observing the notice period, early termination of a fixed-term contract, or a resignation signed under pressure, while identifying the entitlements arising in each situation.

2. Preserve Evidence and Avoid Signing New Documents

Preserve all evidence connected with the termination of employment and avoid signing any new resignation or settlement before reviewing its legal effect. The evidence section below explains the most important documents that should be prepared.

3. Object to the Dismissal in Writing

If the employee disputes the reason for dismissal or a resignation attributed to them, it is important to record their position in writing without delay, explaining that they remain willing to work if prevented from attending or that they did not resign of their own free will.

4. File a Complaint With the Competent Labor Department

Before court proceedings, a claim must first be submitted to the competent Labor Department, which summons both parties to the dispute or their representatives in an attempt to reach an amicable settlement.

The Public Authority for Manpower also provides an electronic labor service allowing registered workers to submit labor dispute complaints, follow up on them, and obtain certain documents proving the employment relationship.

5. Identify the Financial Claims Precisely

The employee should prepare a detailed statement of claims identifying each entitlement, its amount, the method used to calculate it, and the supporting document, rather than combining all sums into one general claim.

6. Attempt an Amicable Settlement

The Labor Department reviews the statements and documents of both parties and attempts to reach a settlement. If an agreement is reached, the settlement record should specify the amounts due, the rights covered, and the payment date.

A settlement containing broad waiver language should not be signed before confirming that it does not waive unpaid claims or rights that were not included in the settlement.

7. Referral of the Dispute to the Labor Court

If the Labor Department is unable to settle the dispute amicably, it must refer the matter within one month from the date the claim was submitted to the Court of First Instance for determination, together with a memorandum summarizing the dispute, the parties’ arguments, and the Department’s observations.

The Court Registry sets a hearing for the case within three days of receiving the referral request and notifies both parties.

8. Submit Evidence and Claims Before the Court

The court examines the employment contract, reason for termination, investigation records, salary and attendance records, correspondence, and expert reports where an expert is appointed, before deciding whether the employee is entitled to compensation and other employment entitlements.

What Is Unfair Dismissal Under Kuwait Labor Law?

Unfair dismissal occurs when an employer terminates the employment relationship without a legitimate and established reason, or because the employee claimed or exercised lawful employment rights.

Whether a dismissal is considered unfair depends on the true reason for termination, the evidence, and the procedures that preceded it, rather than solely on the wording used in the termination letter. Unfair dismissal must also be distinguished from failure to provide the required notice period and early termination of a fixed-term contract, because each situation carries different rights and legal conditions.

Cases of Unfair Dismissal in Kuwait

The facts differ from one employee to another, but the following are among the main situations in which a dismissal decision should be legally reviewed:

Dismissal Without a Legitimate Reason

A dismissal may be considered unfair where an employer terminates an employee without identifying a genuine reason or relies on a general justification unsupported by documents, such as alleging poor performance despite the absence of previous warnings or negative performance evaluations.

It is also important to examine whether the reason stated in the termination letter is the same reason relied upon by the employer before the Labor Department and the court. A change or contradiction in the stated reason may weaken the employer’s position.

Termination Without Notice

For an indefinite-term contract, a monthly paid employee must be notified at least three months before termination, while the notice period is at least one month for other workers.

If the required notice period is not observed, the party terminating the contract must pay compensation equivalent to the wage for the notice period, unless a legal ground exists permitting dismissal without notice or compensation.

Two different issues must therefore be distinguished:

• Failure to observe the notice period: this may create an entitlement to notice pay.
• Unfair dismissal: this requires proof that the reason for dismissal was unlawful or that the employer abused its right to terminate.

Termination without notice alone does not automatically mean that the court will award compensation for unfair dismissal, although it may establish a separate entitlement to notice pay.

Dismissal During Sick Leave or Annual Leave

An employer may not exercise the ordinary right to terminate an indefinite-term contract while the employee is enjoying leave granted under the Labor Law, including annual or sick leave depending on the circumstances.

However, this rule concerns ordinary termination of an indefinite-term contract and does not prevent examination of a disciplinary dismissal based on another violation alleged by the employer. In that case, the alleged violation and the investigation conducted in relation to it should be reviewed.

Dismissal Because of a Labor Complaint or Claim for Employment Rights

A dismissal may be considered unfair if it follows an employee’s claim for unpaid salary, an allowance, leave, compensation, or the filing of a complaint with the Public Authority for Manpower.

The sequence of events is important. If an employee asserts a right and is dismissed shortly afterward without a separate and serious reason emerging, this may constitute evidence that the dismissal was retaliatory, subject to the court’s assessment of the evidence. Article 46 prohibits termination of an employee because they claimed or exercised legitimate employment rights.

Forced Resignation in Kuwait

Dismissal may take an indirect form where an employee is forced to sign a resignation or prevented from performing their work until they leave the job. Whether the resignation is treated as having been given under duress depends on proving that the employment relationship did not end as a result of the employee’s free will.

Dismissal for Refusing a Fundamental Change to Contract Terms

An employer may propose reducing an employee’s salary, materially changing their position, or transferring them to work significantly different from what was agreed, and then dismiss them for refusing the change.

An employee’s refusal of any change does not automatically mean the case will be decided in their favor. The employment contract, nature of the proposed change, employer’s authority, and effect of the decision on the employee’s fundamental rights should all be reviewed.

Article 48 permits an employee to terminate the contract without notice while retaining the right to end-of-service benefits in specific situations, including where the employer fails to comply with the contract or the law.

When Is Dismissal of an Employee Lawful?

The Labor Law permits an employer to dismiss an employee in specific situations, but dismissal is linked to proof of the incident and compliance with investigation and disciplinary procedures.

Situations that may justify dismissal without notice, compensation, or end-of-service benefits include:

• The employee commits an error that results in substantial loss to the employer.
• It is established that the employee obtained the job through fraud or misrepresentation.
• The employee discloses confidential business information in a way that causes or could cause an established loss.

The law also permits dismissal in other situations, including where a final judgment is issued against the employee for a crime involving honor, honesty, or morality; where the employee commits an indecent act at the workplace; assaults another person during or because of work; breaches employment obligations; or repeatedly violates the employer’s instructions.

In this latter group of cases, dismissal does not result in the employee losing their end-of-service benefit. Even where a violation may justify dismissal, the validity of the investigation and disciplinary procedures preceding the decision should still be reviewed.

Disciplinary Investigation Before Dismissing an Employee

Article 37 provides that a disciplinary penalty may not be imposed on an employee unless they are informed in writing of the allegation, their statements are heard, their defense is investigated, and the proceedings are recorded in a report placed in their file. The employee must also be notified in writing of the penalty and the reasons for it.

Where an employer relies on a disciplinary violation, the investigation should be reviewed through questions such as:

• Was the employee clearly informed of the alleged violation?
• Was the employee given an opportunity to respond and submit documents?
• Did the investigation identify the date of the incident and how it occurred?
• Is there evidence supporting the allegation?
• Did the employee sign the investigation record, or was their refusal or objection recorded?
• Was dismissal proportionate to the nature of the violation?
• Had another disciplinary penalty already been imposed for the same incident?

The absence of a genuine investigation, or a merely formal investigation, may weaken the reason relied upon by the employer, but it does not relieve the employee of the need to submit evidence supporting their claims.

What Are the Requirements for Proving Unfair Dismissal in Kuwait?

To build a clear unfair dismissal claim, the termination must be connected to specific elements, with evidence supporting each one. The main elements include:

• Existence of an employment relationship: proving that the employee worked for the employer under its management and supervision in return for wages through the employment contract, work permit, salary transfers, and attendance records.
• Termination by the employer: proving that the employer ended the relationship or that its actions forced the employee to leave, particularly where the employer alleges that the employee resigned voluntarily.
• Unlawfulness of the reason for dismissal: showing that the dismissal was based on an unproven reason, occurred because the employee claimed employment rights, took place during protected leave, or followed an alleged violation that was not lawfully investigated.
• Existence of damage or unpaid entitlements: identifying material or moral damage resulting from the dismissal and separately calculating notice pay, end-of-service benefits, wages, accrued leave, and other entitlements.
• Compliance with legal procedures: submitting the claim first to the competent Labor Department and then commencing proceedings within the statutory time limit applicable to employment claims where the claim is denied.

Evidence and Documents for Proving Unfair Dismissal in Kuwait

Unfair dismissal is not established by the termination letter alone. It is usually inferred from a combination of documents and evidence showing why the employment relationship ended, the sequence of events, and whether the reasons and procedures relied upon by the employer were valid.

The most important evidence may include:

Employee Rights in Cases of Unfair Dismissal

Unfair dismissal may give rise to more than one entitlement, and compensation does not replace the employee’s other employment rights. The main rights may include:

• End-of-service benefit: the employee is entitled to it in accordance with the law, and compensation for proven material or moral damage may be awarded separately where the employer’s unfair dismissal is established.
• Notice pay: this may be due where an indefinite-term contract is terminated without observing the applicable notice period and is equivalent to the wage for the unobserved notice period.
• Compensation for unfair dismissal: the court determines this according to the proven material and moral damage. There is no single fixed amount applicable to every case.
• Compensation for early termination of a fixed-term contract: this may be claimed where the contract is terminated before its expiry without legal justification, provided the compensation does not exceed the wage for the remaining contract period.
• Wages, commissions, and allowances: the employee may claim unpaid amounts where they are proven through the contract, account statements, company records, or correspondence.
• Cash compensation for unused leave: the employee may be entitled to payment for unused leave according to their period of service and the applicable records.
• End-of-service certificate: the employee is entitled to a certificate stating the period of service, nature of work, and last wage without wording that harms their professional reputation.
• Return of documents and tools: upon termination, the employer must return certificates, documents, and tools deposited with it by the employee.

How Is Unfair Dismissal Compensation Assessed in Kuwait?

There is no single fixed amount of compensation for unfair dismissal that applies to all cases. The court assesses compensation according to the material or moral damage proven by the employee, the reason for dismissal, the length of service, and the circumstances surrounding termination.

Notice pay, end-of-service benefits, and unpaid wages are separate claims and should each be calculated independently.

How to Calculate End-of-Service Benefits After Unfair Dismissal

Article 51 regulates the calculation of end-of-service benefits according to the employee’s wage payment system.

Monthly Paid Employee

The calculation is generally as follows:

• Fifteen days’ wage for each of the first five years of service.
• One month’s wage for each subsequent year.
• Fractions of a year are calculated proportionately to the period actually served.
• The total benefit must not exceed one and a half years’ wages.

Employee Paid on a Non-Monthly Basis

The calculation is generally as follows:

• Ten days’ wage for each of the first five years of service.
• Fifteen days’ wage for each subsequent year.
• Fractions of a year are calculated proportionately to the period worked.
• The total benefit must not exceed one year’s wage.

The calculation is not necessarily based on basic salary alone. The concept of wage may include amounts received by the employee in consideration for work, together with recurring elements provided for in the contract or employer regulations, such as certain allowances, bonuses, benefits, and cash advantages, depending on their nature and regularity.

Salary statements, the employment contract, and the components of remuneration should therefore be reviewed before adopting a final end-of-service calculation.

The Difference Between a Resignation Under Pressure and a Resignation for Cause

Two different situations should be distinguished:

Resignation Signed Under Pressure

In this situation, the employee argues that the resignation did not reflect their true intention and that they signed it because of threats, being prevented from working, or other unlawful pressure.

The position depends on the evidence surrounding the signature, such as messages, witnesses, the employee’s immediate objection, and the timing of salary suspension or denial of access to the workplace.

Employee Termination of the Contract Because of the Employer’s Breach

Article 48 permits an employee to terminate the contract without notice while retaining the right to end-of-service benefits in specific situations, including:

• The employer fails to comply with the employment contract or the law.
• The employee is assaulted by the employer or the employer’s representative.
• Continuing the work threatens the employee’s health or safety according to a decision issued by a competent medical authority.
• Fraud or misrepresentation occurred during contracting regarding the terms of employment.
• The employee is accused of a crime and subsequently acquitted by a final judgment.
• The employer or its representative commits an indecent act toward the employee.

Employees should not abruptly leave work and then describe the situation as a “resignation for cause” without documenting and proving the employer’s breach, because the employer may argue that the employee abandoned the job or resigned voluntarily.

Unfair Dismissal of Kuwaiti Employees in the Private Sector

The protections provided under the Labor Law apply to Kuwaiti employees in the private sector regarding the lawfulness of dismissal, notice pay, the prohibition on termination because the employee claimed employment rights, and labor complaint procedures.

However, calculating a Kuwaiti employee’s final settlement may also require reviewing Social Security contribution records with the Public Institution for Social Security, the components of remuneration, length of service, and the nature of amounts paid by the employer. A calculation used for another employee should therefore not automatically be applied to their case.

Time Limit for Filing an Unfair Dismissal Lawsuit in Kuwait

Article 144 provides that employment claims brought by workers under the Labor Law will not be heard, where denied, after one year has passed from the date the employment contract ended.

The more legally precise expression is that the claim will not be heard where denied, rather than stating that all rights automatically expire once the year passes. Nevertheless, exceeding the period exposes the lawsuit to a defense that may prevent the claims from being heard.

Because court proceedings must also be preceded by a claim before the competent Labor Department, employees should not wait until the one-year period is close to expiring before beginning the procedures for filing an unfair dismissal lawsuit in Kuwait.

Mistakes to Avoid After Being Dismissed From Work

Certain actions may affect the strength of the evidence when filing an unfair dismissal lawsuit in Kuwait. Important mistakes to avoid include:

• Signing a resignation or final settlement before reviewing it.
• Failing to document the objection or being prevented from working.
• Submitting incomplete or altered copies of correspondence.
• Combining all entitlements into one unexplained total amount.
• Delaying the complaint until the legal time limit is close to expiring.

The Role of a Lawyer in Filing an Unfair Dismissal Lawsuit in Kuwait

A lawyer’s role in filing an unfair dismissal lawsuit in Kuwait begins before the labor complaint is submitted, by determining the correct legal characterization of the termination and organizing the necessary claims and evidence.

The role of a lawyer in Kuwait may include:

• Determining the correct legal characterization of the end of employment.
• Connecting each claim to the evidence that supports it.
• Calculating entitlements without overlap or duplication.
• Responding to the employer’s reasons for dismissal and supporting documents.
• Reviewing any settlement to protect the employee from waiving unpaid rights.

Organizing the case file from the beginning gives the employee a clearer picture of the strength of their position, missing documents, and amounts that may be claimed, without making any advance promise regarding the outcome of the case.

Frequently Asked Questions About Filing an Unfair Dismissal Lawsuit in Kuwait

What is unfair dismissal in Kuwait?

Unfair dismissal generally occurs when an employer terminates employment without a legitimate reason or because the employee exercised lawful employment rights.

How do I file an unfair dismissal lawsuit in Kuwait?

The employee should first submit a claim to the competent Labor Department before the dispute may be referred to the labor court.

How long do I have to file an unfair dismissal claim in Kuwait?

Employment claims are generally not heard, where denied, after one year from the date the employment contract ends.

What evidence can prove unfair dismissal?

Useful evidence may include the employment contract, termination letter, correspondence, salary records, investigation documents, and labor complaint records.

Is dismissal without notice automatically unfair dismissal?

No. Failure to provide notice may create a separate claim for notice pay, but unfair dismissal requires examining the reason and circumstances of termination.

Can I claim compensation for unfair dismissal in Kuwait?

Yes, where unfair dismissal and resulting damage are established. The court assesses compensation according to the facts and evidence of each case.

This brings us to the end of this guide on filing an unfair dismissal lawsuit in Kuwait and the related procedures, evidence, employee rights, and compensation claims.

If you have been dismissed or asked to sign a resignation or settlement, you can schedule an appointment with Attorney Fahad Ahmed Al-Saeed to review your documents and explain the appropriate legal procedure through the WhatsApp button at the bottom of the screen.

Related Articles:

• Complaint Against a Sponsor for Labor Exploitation in Kuwait: How to File the Complaint and Avoid Mistakes.
• Labor Lawsuit for a Person Whose Citizenship Has Been Revoked in Kuwait: Rights, Time Limits, and Procedures.
• Claim Petition for Employment Rights in Kuwait: How to Prepare It Correctly.
• Sample Defense Memorandum in an Unfair Dismissal Lawsuit in Kuwait for Employees and Employers.

Legal Disclaimer: The information provided is for educational purposes only and does not constitute legal advice. For advice tailored to your circumstances, please consult a qualified lawyer.