Cabinet approves labor law change to allow salary cuts

The Cabinet has approved amendments to the labor law in the private sector that allows employers to reduce salaries based on mutual agreement with employees. MPs quickly warned the government against any legislative changes that could undermine the rights of Kuwaiti citizens employed in the private sector.

MPs Abdulwahab Al-Babtain, Yousef Al-Fadhalah, and Nasser Al-Dossari and others said they will strongly oppose any move to change the law to allow reducing the salaries of Kuwaitis in the private sector. The lawmakers, however, did not make any specific reference to expatriates employees, who make up over 97 percent of the private sector workforce.

Under the current labor law amended in 2010, companies have no right under any circumstances to reduce the salaries of their staff even with their consent, and any action like this is considered null and void by Kuwaiti courts. So, the only option for companies is to terminate the services of their staff, pay full indemnity and benefits and then reappoint them on new wages.

MP Ahmad Al-Fadhl said he will submit a draft law stipulating to allow a compromise – like the government amendment – in order to allow employees to keep their jobs and companies to keep their employees. He said his amendment stipulates to legalize the salary cut only if the companies and their staff reach an agreement to this effect.

Source: Kuwait Times

Leave a Reply

Your email address will not be published. Required fields are marked *