Kuwait Overhauls Labour Law

Kuwait's new Law No. 6 of 2010 (the "Labour Law"), enacted February 21st, 2010 following its publication in the Official Gazette, replaces the previous labour law in its entirety. Besides providing for greater flexibility with respect to employee leaves and working hours, the Labour Law differs from the previous labour regulations with respect to end-of-service indemnities, reducing the restrictions for the establishment of unions, and expanding the rights of female employees. The Labour Law is retroactive in the sense that it regulates current and old contracts; however employees may not claim any benefits granted under the new law if they have resigned prior to its enactment. The bylaws, which will address issues such as the transfer and issuance of residence permits as well as the issuance of arrest warrants against employees, are expected to take effect in six months.