No Salary Transfers? No New Hires—Kuwait Suspends Private Sector Files

KUWAIT CITY, July 16: Official sources stated that the recent suspension of some private sector company files was due to violations of Kuwait’s private sector labor law and its amended regulations. These regulations mandate that employers with five or more workers must transfer employee salaries through banks.  

The sources clarified that the first phase of the suspension targeted non-compliant employers as a precautionary measure, aimed at urging them to comply with salary transfer requirements. The Public Authority for Manpower (PAM) will continue monitoring employers to ensure full adherence to the law.  

They further noted that enforcement actions are being carried out under the directives of First Deputy Prime Minister and Minister of Interior Sheikh Fahad Al-Yousef, in line with Cabinet decisions to ensure timely wage payments.  

The sources emphasized Kuwait’s commitment to protecting its international reputation, particularly concerning human rights and the treatment of expatriate workers. Importantly, they assured that suspending an employer’s file does not impact the ability to renew permits for existing employees or transfer them to compliant employers. This ensures that workers are not penalized or rendered in violation of residency laws.  

In conclusion, the sources explained that suspension of an employer’s file halts the hiring of new workers and the workforce needs assessment process until the employer rectifies their legal status. This includes transferring salaries and entering the necessary legal justifications for any non-transfer into PAM’s Ashal system