---
title: "Kuwait Termination & Severance 2026"
description: "Kuwait owes end-of-service pay to every leaver: 15 days per year for the first five, then one month per year. Notice runs 3 months for monthly staff."
canonical: https://www.teamed.global/country-hiring-guides/kuwait/termination-and-severance
---

Kuwait · Termination child

Served by Teamed vetted partner-entity network in Kuwait

# How do you *terminate an employee in Kuwait* in 2026?

Walk an employee out of a Kuwait job and you still owe end-of-service pay, even on a clean resignation. A monthly-paid worker earns 15 days of wages for each of the first five years, then a full month for every year after. The running total is capped at one and a half years' wage.

Last reviewed 13 June 2026 · Kuwait guide

![Kuwait City waterfront at golden hour with the Kuwait Towers and Gulf shoreline in warm evening light.](/images/country-guides/kuwait-termination-severance.webp)

Illustration · Kuwait City, Kuwait

Answer.cite this

End-of-service pay is owed to every leaver in Kuwait. A monthly-paid worker gets 15 days of wages for each of the first five years. After that it rises to one month for every year. The total cannot pass one and a half years' wage.

Notice runs 3 months for monthly-paid staff and 1 month for everyone else. You can pay it out instead of working it.

Most expats get no state pension here, so the end-of-service payout is their whole leaving fund. Daily, weekly, piece and hourly workers accrue at 10 days per year for the first five years. ([Labour Law No. 6 of 2010](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf))

## What are the valid grounds and fair procedure in Kuwait?

You can end an indefinite contract with notice and the end-of-service payout. You do not need to prove fault to do that. But you cannot dismiss someone for an unfair reason.

Firing a worker for pregnancy, union activity, or a complaint to the authorities is illegal. A worker who is dismissed without good cause can claim arbitrary dismissal pay on top of the leaving payout. ([Labour Law No. 6 of 2010](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf))

Kuwait runs two routes out of an indefinite contract under [Law No. 6 of 2010](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf). You give notice and pay the end-of-service indemnity, or you dismiss for cause without notice where the law allows it. The second route is narrow and the burden sits with the employer.

### Routes to end employment

1. **Notice with indemnity**, the standard route, where either side ends the contract by serving the required notice and the worker keeps the full end-of-service payout
2. **Summary dismissal for cause**, reserved for serious misconduct such as assault, fraud, or repeated unexcused absence, which can remove notice but rarely the indemnity
3. **Probation exit**, where the contract ends inside the agreed probation window of up to 100 days
4. **Mutual agreement**, where both sides settle the leaving terms in writing
5. **Expiry of a fixed term**, where a defined contract simply runs out on its end date

A worker dismissed without a valid reason can bring an arbitrary dismissal claim. Where it succeeds, the labour court can award compensation in addition to the end-of-service indemnity. Protected reasons such as pregnancy, trade union membership, and filing a labour complaint make a dismissal unlawful from the first day of work, with no minimum service needed to challenge it.

1. Confirm the route out Decide whether you are ending with notice and indemnity, dismissing for cause, or settling by agreement. The route sets what you owe and whether notice can be cut.
2. Check for protected reasons Rule out any reason the law protects, such as pregnancy, union activity, or a labour complaint. A dismissal on a protected reason is unlawful from day one.
3. Serve written notice or pay it out Give the worker notice in writing, or pay the equivalent salary instead. Monthly staff get the longer notice; other pay cycles get less.
4. Calculate the end-of-service indemnity Work out the payout from years of service, applying the per-year rates and then the cap on the total. Add unused annual leave and any outstanding wages.
5. Close the permit and pay out Cancel or transfer the work permit for foreign hires and clear the final settlement inside the legal payment window. Late pay creates exposure.

## How much notice must you give a Kuwait employee?

Monthly-paid workers get 3 months written notice. Everyone else gets 1 month. The rule cuts both ways, so a resigning worker owes you the same.

Skip the notice and you pay it out. The payment equals the worker's salary for the missed notice period. ([Labour Law No. 6 of 2010, Article 44](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf))

| Worker type | Minimum notice |
| --- | --- |
| Monthly-paid (indefinite contract) | 3 months |
| Other pay cycles (daily, weekly, piece, hourly) | 1 month |
| During probation | Either side can end the contract inside the 100 days window |

These are the floors set by [Article 44 of Law No. 6 of 2010](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf). A contract can set longer notice. It cannot drop below the legal minimum. Notice runs from the day it is served in writing, and the worker stays on full pay throughout.

### Payment instead of notice

Either side may pay out the notice rather than work it. The sum equals the salary the worker would have earned across the notice window. It sits on top of the end-of-service indemnity and any unused annual leave, which the law sets at 30 days per year.

## How is Kuwait end-of-service indemnity calculated?

Every worker who leaves with notice gets an end-of-service payout. A monthly-paid worker earns 15 days of wages for each of the first five years. After five years it climbs to one month per year.

The running total stops at one and a half years' wage, which is 18 months of pay. Daily, weekly, piece and hourly workers accrue at 10 days per year for the first five years instead.

The end-of-service indemnity sits in [Article 51 of Law No. 6 of 2010](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf). It rewards length of service and is owed whether the worker resigns or is let go, as long as the exit is not a summary dismissal for serious misconduct. Most expats are outside the state pension scheme, so this payout is the entire leaving fund they walk away with.

### Indemnity by worker type

| Worker type | First five years (per year) | After five years (per year) |
| --- | --- | --- |
| Monthly-paid | 15 days of wages | 1 month of salary |
| Daily, weekly, piece or hourly | 10 days of wages | 15 days of wages |

Worked example for a monthly-paid worker leaving after seven full years. The first five years earn 15 days of wages each. The two years beyond five earn 1 month of salary each. Add the two parts together for the total payout. The result is then checked against the cap.

### The cap on the total

The total indemnity for a monthly-paid worker cannot pass one and a half years' wage. That is 18 months of pay, no matter how long the service runs. A daily, weekly, piece or hourly worker is capped at one year's wage instead.

### Accrued annual leave on exit

Unused annual leave is paid out on top. The law grants 30 days of paid leave a year, so any balance left on the last working day becomes a cash payment in the final settlement.

## What about expatriate work permits and group exits in Kuwait?

Kuwait has no fixed group-redundancy consultation window like the UK or France. The pressure point is the residency and work permit, not a collective process.

When an expat's job ends, the sponsoring employer must close or transfer the work permit. Get the timing wrong and the worker's legal right to stay lapses.

Kuwait Public Authority for Manpower · Labour Law No. 6 of 2010

End-of-service pay is owed on every exit. A monthly-paid worker accrues 15 days of wages for each of the first five years, then one month per year, capped at one and a half years' wage. The final settlement must clear within 7 days of the due date.

Source: [Law No. 6 of 2010 concerning Labour in the Private Sector](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf)

For most foreign hires the job and the visa are tied together. The employer is the sponsor, and a termination starts a clock on the worker's right to remain in the country. The permit must be cancelled or moved to a new sponsor within a short window, or the worker risks falling out of status.

There is no separate framework for large group exits in Kuwait, and no fixed number of days for consultation. The general rules in [Law No. 6 of 2010](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf) apply to each worker on their own terms. The real exposure on a group exit is the stacked end-of-service liability and the permit administration across every leaver at once.

### What the final settlement must cover

- End-of-service indemnity to the worker's last day
- Notice pay, or payment instead of the 3 months notice for monthly staff
- Accrued but unused annual leave from the 30 days yearly entitlement
- Any wages outstanding, due within 7 days of the due date
- Work permit cancellation or transfer for foreign hires

## Can you agree a mutual exit in Kuwait?

Yes. Both sides can settle the leaving terms in writing and end the contract by agreement. A clear settlement letter records what is paid and closes off later disputes.

The end-of-service indemnity still stands behind a mutual exit. You can agree more than the legal floor, never less.

A mutual exit is a normal way to part in Kuwait. The agreement should be written and signed, and it should record the agreed last day, the full payment breakdown, and any extra sum on top of the legal minimum.

Typical parts of a Kuwait mutual exit:

- **End-of-service indemnity**, the full payout earned to the last day at 15 days per year for the first five years
- **Notice or payment instead**, covering the 3 months for monthly staff or 1 month for others
- **Accrued annual leave**, every unused day from the 30 days yearly entitlement
- **Any agreed extra payment**, where the parties want to settle above the floor
- **Work permit handover**, agreeing whether the visa is cancelled or transferred

On timing, the final settlement must clear within 7 days of the due date under the wage-payment rule. Get the agreement signed before the last working day so the payout and the permit step run cleanly together.

## How Teamed runs Kuwait terminations

Teamed is your legal [employer of record](/lp/employer-of-record) in Kuwait. The cost is [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Every Kuwait termination runs through Teamed's local operations team.

We handle the notice maths, the end-of-service indemnity, the leave payout, and the work permit step. All of it runs on **one platform**. Who leaves and why is always your call.

**Real HR and legal experts** handle your Kuwait hires, from the first offer letter through every monthly payroll run. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**, and employer cost **passes through at cost, itemised** on every invoice.

The split of responsibilities under EOR for Kuwait terminations:

| What Teamed handles | What you decide |
| --- | --- |
| Notice to the 3 months minimum for monthly staff | Whether to end the contract, why, and on what timeline |
| End-of-service indemnity at 15 days per year, then one month per year | Whether to offer terms above the legal floor |
| The cap check against one and a half years' wage | Performance standards and what counts as misconduct |
| Accrued leave payout from the 30 days entitlement | Reference wording and any non-disclosure terms |
| Work permit cancellation or transfer for foreign hires | Communication with the wider team |
| Final settlement cleared within 7 days of the due date | Commercial terms of any mutual exit |

Kuwait has no group-consultation window, but the permit clock and the stacked end-of-service liability are real on every exit. Teamed tracks both on each leaver.

EOR, contractors, and entity staff all live on **one platform**. A worker hired through Teamed's Kuwait network can **graduate** to your own Kuwaiti entity when headcount makes that the right call, **until it isn't**. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see when the model flips. Start from the [Kuwait hiring overview](/country-hiring-guides/kuwait).

Key source: [Law No. 6 of 2010 concerning Labour in the Private Sector](https://web.archive.org/web/20250117223050id_/https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf), administered by the Kuwait Public Authority for Manpower.

## Frequently asked questions

Is end-of-service pay mandatory in Kuwait in 2026?

Yes. Under Article 51 of Labour Law No. 6 of 2010, end-of-service indemnity is owed to a departing worker whether they resign or are let go, as long as the exit is not a summary dismissal for serious misconduct. A monthly-paid worker earns 15 days of wages for each of the first five years, then one month per year after that. The total is capped at one and a half years' wage.

How much notice must you give a Kuwait employee?

Monthly-paid workers on an indefinite contract get 3 months written notice under Article 44. Workers on other pay cycles get 1 month. The rule is reciprocal, so a resigning worker owes the same notice back. You can pay out the notice instead of working it, at the salary the worker would have earned over the period.

Do expats get end-of-service pay in Kuwait?

Yes, and it matters more for them. Most expatriate workers are outside Kuwait's state pension scheme, so the end-of-service indemnity is the entire leaving fund they walk away with. The accrual is the same as for nationals: 15 days of wages per year for the first five years, then one month per year, capped at one and a half years' wage.

What is the maximum probation period in Kuwait?

Probation runs to a maximum of 100 days and must be stated in the contract. Either side can end the contract inside that window. Beyond probation, the full notice and end-of-service rules apply.

When must the final settlement be paid in Kuwait?

Wages must not be delayed beyond 7 days after the due date under Article 56. The final settlement covers the end-of-service indemnity, any notice pay, and unused annual leave from the 30 days yearly entitlement. For foreign hires the work permit must also be cancelled or transferred so the worker stays in legal status.

Teamed Legal Operations

The Kuwait mistake we see most is treating the end-of-service payout as optional on a resignation. It is not. A worker who quits still walks away with the full indemnity. Budget for it from the first hire, because for most expats it is the only leaving fund they get.

A note from Tom Price-Daniel

Kuwait pays out on the way out, even when the worker is the one who resigns.  
A monthly-paid worker banks 15 days of wages a year, capped at one and a half years' pay.  
For an expat with no state pension, that payout is the whole leaving fund.  
Know the number first.

Tom Price-Daniel · Co-founder, Teamed

## Related Kuwait guides

- [Hiring in Kuwait, overview](/country-hiring-guides/kuwait)parent
- [Bulgaria termination and severance](/country-hiring-guides/bulgaria/termination-and-severance)neighbour
- [UK termination and severance](/country-hiring-guides/united-kingdom/termination-and-severance)neighbour
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [EOR vs Entity Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction, so verify current requirements with the Kuwait Public Authority for Manpower, the Public Institution for Social Security, or a qualified professional before relying on any specific figure. Kuwait's Labour Law No. 6 of 2010 remains the governing statute as of June 2026; the observed public-holiday calendar is set year to year by Cabinet decree, and amendments to private-sector labour rules are periodically tabled, so monitor official manpower authority notices for changes that affect notice and final-pay calculations.