Kuwait Moves to Protect Expat Workers' Rights with New Enforcement
The sources explained that the suspension does not prevent the renewal of workers' files, nor does it block their transfer to another employer whose file is not suspended. This step is taken under Article 57 of Law No. 6/2010 concerning labor in the private sector, which states that 'an employer who hires no fewer than five workers, as per the law's provisions, is obligated to deposit their salaries into accounts at local financial institutions and submit copies of the bank statements to PAM.'
The first phase of suspension targeted non-compliant business owners and companies in the private sector, based on the employer's commitment through PAM's automated systems to adhere to the requirements of the aforementioned article. This serves as a precautionary warning. While emphasizing that the suspension is primarily a warning to employers to ensure timely salary transfers to local financial institutions, the sources stressed that, under direct orders from Minister Sheikh Fahad, PAM will not tolerate any harm to Kuwait's reputation in human rights, especially regarding the rights of expatriate workers. They explained that PAM warned companies that fail to pay their workers' salaries regularly that immediate legal action will be taken against them.
It affirmed its continued monitoring of employers to ensure full compliance with salary payment and deposit requirements in accordance with the Labor Law. Once the conditions are met, the suspension will be automatically lifted from the company or employer without the need for further review. Regarding the suspension of files and renewals, the sources clarified that suspending a company's file does not prevent the renewal of its workers' permits nor their transfer to a nonsuspended employer's file.
This ensures that workers are not harmed or end up being in violation of residency laws. However, suspending an employer's file also halts the addition of new workers and the processing of need assessment requests until the employer's legal status with the Authority is rectified. The employer must fully commit to transferring workers' salaries to their accounts and provide reasons for any delays or failures through PAM's automated system via the 'Ashal' service.
Suspending a file also means suspending the addition of new workers and the processing of need assessment procedures. It is worth highlighting that in October 2024, Minister Sheikh Fahad Al-Yousef stressed that he would take firm action against all companies violating the Cabinet's decision on the timely payment of salaries and wages to their workers.
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