Kuwait has a strong economy, which generates its revenue from its vast oil reserves and a growing private sector. The economy of Kuwait is projected by the IMF to achieve 2.6% GDP growth in 2025. Businesses are expanding in energy, finance, and healthcare in this nation. If you want your company to expand here, you need to hire people and understand Kuwait’s labor laws and probation periods.

Probation periods in Kuwait allow employers to evaluate an employee’s skills and cultural fit while giving employees time to assess the role. Kuwait’s Labor Law No. 6 of 2010 provides clear guidelines for probationary employment to balance employer flexibility with worker protections.

This guide covers legal definitions, maximum probation durations, termination rules, notice periods, employee rights during probation, and key benefits for both parties. Let’s look at how they are regulated by the Labour Law of Kuwait. 

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Definition of a Probation Period in Kuwait

Under Article 43 of Kuwait’s Labor Law, a probation period is a trial phase at the start of employment where either party can terminate the contract with minimal notice. Its purpose is to assess skills, performance, and workplace compatibility of the employee, but also to provide protection to the worker.

A probation period is explicitly recognized and regulated by the Kuwaiti Labour Law (Law No. 6 of 2010), and if agreed upon by both parties, begins on the employee’s first day of work. This must be clearly stated in the employment contract. 

As per Article 28 of the Labour Law, employment contracts must be in writing and should be in Arabic and English, with the Arabic version being the legally valid one in court. If the employment contract does not specifically define a probation period in writing, it is deemed a permanent employment contract from day one. 

Lengths of Probationary Periods in Kuwait

According to Kuwait Labour Law, Article 29, the maximum length for a probationary period in Kuwait is 100 working days.

The 100-working-day maximum applies across different types of roles and qualifications for initial agreements. The Labour Law does not differentiate probation lengths based on the employee’s status.

Permanent or Indefinite Contracts

In Kuwait, indefinite-term contracts are a common and widely used form of employment agreement. The Labour Law allows for both fixed-term and indefinite-term contracts. However, for roles that are continuous and without a specific project end, indefinite-term contracts are generally used.

For new employees hired on permanent or indefinite contracts, the employment typically begins with a 100-day probationary period. The employer assesses the capabilities, cultural fit, and performance for the long-term role. If the employment is not terminated, the contract converts into a full, indefinite-term employment agreement.

Fixed-Term or Definite Contracts

Kuwait Labour Law (Law No. 6 of 2010) also explicitly recognizes fixed-term employment contracts for a specific period with a clear start and end date. These are distinct from the probationary period itself, although a probationary period can be included within them. Fixed-term contracts are allowed for specific projects, seasonal work, or other temporary needs where the employment relationship is naturally limited in duration. 

All fixed-term contracts, including any probationary clauses within them, must be in writing and in Arabic to be legally valid. Fixed-term contracts terminate upon their specified end date without the need for notice or severance pay. 

Legal Considerations for the Probation Period in Kuwait

The legal framework governing employment in Kuwait is established by the Kuwaiti Labour Law. This law outlines the rights and obligations of both employers and employees during the initial assessment phase.

Pay and Working Conditions

All employees must be paid at least the applicable minimum wage. As of January 1, 2025, the minimum wage for private sector employees is 75 Kuwaiti Dinars per month, which is USD 248. For domestic workers, it is 60 KWD.

Kuwait also has a social security system administered by the Public Institution for Social Security (PIFSS). Typically, 11.5% of the employee’s salary, which is capped at KWD 2,750 for unemployment insurance, KWD 1,500 for basic, and KWD 1,250 for supplementary funds, is mandatory. The employee contribution is 8.0% of the employee’s salary.

These are mandatory for Kuwaiti nationals. For expatriates, social security contributions are not mandatory for pensions; however, a mandatory health insurance scheme (Dhaman) for expatriate workers in the private sector is being implemented, which will eventually replace the need for employers to secure separate private insurance.

Termination and Notice

If the employment contract is terminated during the probation period, an expatriate worker will generally not be able to change jobs within Kuwait and typically must leave the country. This simplified termination process during probation contrasts sharply with termination after the probationary period. 

For employees on indefinite contracts who have completed probation, notice periods range from 15 days to 3 months, depending on the length of service. This includes: 

Length of ServiceNotice Period
Less than 5 years1 month
5 years or more3 months

Severance pay is also fully applicable after 5 years, and it includes:

Length of ServiceSeverance Pay
First 5 years15 days’ wages per year
Beyond 5 years1 month’s wages per year

Vacation / Holidays

Kuwait has 14-16 public holidays each year. The variance accounts for the Islamic calendar’s conversion into solar calendars for religious holidays. If any of these public holidays fall during a worker’s probationary period, they are entitled to the day off with full pay. 

Employees in Kuwait are entitled to 30 days of paid annual leave after completing nine months of service. This entitlement accrues at a rate of 2.5 days per month. Since the maximum probationary period is typically 100 working days, which is up to 5 months, probationary workers usually do not complete the nine-month service requirement to take annual leave during their probation. 

Employees are entitled to sick leave with varying levels of pay based on the duration of absence:

Leave DurationPay Rate
First 15 days100% (Full pay)
Next 10 days75% pay
Following 10 days50% pay
Next 10 days25% pay
Subsequent 30 daysUnpaid

Benefits of Probation Periods in Kuwait

Probation periods in Kuwait are a valuable trial phase, which enables employers to assess candidate suitability and employees to evaluate job compatibility. Some of the probation period benefits include the following:

  • For Employees

Employees gain a formal and defined period to experience their new work environment.

Employees have a clear pathway to resign within the 100-working-day period, without providing notice.

New employees are protected by fundamental labor rights.

Employers are obligated to pay EOSI for the days worked, even if termination occurs during probation.

  • For Employers

Employers can assess a worker’s performance, reliability, adaptability, and cultural fit.

If a new hire proves unsuitable for the role, employers can easily terminate the employment.

A framework for termination helps employers eliminate the financial and legal risks of an unsuitable hire.

Probation can encourage new employees to quickly adapt, learn, and perform to their full potential.

Conclusion

If you are looking to expand your company in Kuwait, you need to be aware of its specific labor laws, probationary periods, End-of-Service Indemnity, and social security. The Kuwaiti Labour Law provides a clear framework for these trial periods, with a maximum duration of 100 working days for mutual assessment.

Remote People helps businesses like yours handle these challenges. We will take care of probation period regulations while you focus on your core business operations and expansion in Kuwait.

Frequently Asked Questions

For private sector employees, the probation period cannot exceed 100 days according to Article 43 of the Kuwait Labor Law. Government employees may face longer probation periods of up to 1 year. 

Probationary employees are entitled to base salary, public holidays, and medical insurance from day one. But, they do not accrue annual leave, end-of-service gratuity, and paid sick leave until the probation period is over.

Kuwaiti law strictly prohibits extending probation beyond 100 days or repeating probation for the same employee in the same position. Employers must either confirm employment or terminate when probation ends.

The employer must provide written notice before probation ends, pay all earned wages, process final exit paperwork, and cancel work visas for expatriates. No severance is required unless contractual terms specify otherwise.