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Private sector employers discuss employment law

10 Jun, 2010

Kuwait’s recently introduced employment legislation would dramatically change the landscape of the country’s private sector and provide greater rights to employees, was stated by NEN Al-Wagayan & Al-Saif law firm where a team from the concerned legal practice area conducted a workshop to help organizations understand the implications of the new regulations.

More than 60 delegates from the private sector attended the seminar, which reflected the dramatic improvements where female employees now faced being one of the key focal points.

New private sector labor laws were approved by the Kuwaiti parliament in December and came in to force in February, and private sector organizations are now rapidly aligning their policies to the new requirements.

Mr. Najeeb Al-Wagayan the founder partner of (NEN) Al-Wagayan & Al-Saif, said that ‘The Seminar provided a good opportunity for employers across the private sector to discuss the changes and questions raised and to give a real insight onto the challenges and benefits contained in the new law.”

Among the key changes were a number of improvements affected to the rights of female employees that will both encourage and retain more female talent within the private sector. These include:

Improvements to maternity leave;

Nursery facilities for female employees with children aged under four.

Entitlement to full end – of – service payment for women resigning within one year of marriage.

“working mothers would see a dramatic improvement in flexibility, which it is hoped will encourage more women to channel their talents into the private sector; said a partner of the firm. ‘A number of delegates were interested in the practical aspects of providing nurseries as now every employer at a secure industrial site with even a handful of female employees, which has a workforce of more than 200 will be required to install a nursery.

This would make a huge difference to female employees, allowing for greater flexibility, and will encourage more women to stay in employment after starting a family.’

These family friendly changes came on top of the changes affecting all private sector employees, such as longer annual leave entitlement, more public holidays, improved remuneration package on resignation, a minimum wage and a right not to be dismissed without a good reason.

The partner went on to continue, ‘when the new changes to termination and unfair dismissal are mixed with the changes to working hours and holiday entitlements, Kuwait will have one of the strongest labor protection systems in the gulf, and rights which are equal to some of the best international standards.

‘Delegates recognized the real increase in costs represented by turnover of staff as, on dismissal, every employee is now entitled to three months notice.

The reality is that most employees resign to move to a new employer, in order to improve their pay or prospects or simply to leave the region, in which case they are now entitled to a much improved gratuity.

Interesting points were again raised by the delegates themselves about the ability of employers to agree on shorter periods of notice with staff who want to leave in order to reduce those costs.’

NEN Al Wagayan & Al Saif law firm Kuwait has worked with large number of companies to ensure that their policies accurately reflect the changes in employment law.

The Middle East employment team is working with local companies and international firms with a presence in Kuwait to help them fully comprehend the changes that have been introduced and to align the new law with their current policies.

The New Labor Law is certainly progressive and demonstrated the importance that the Kuwaiti government has placed on creating a modern labor market, Nations that harness the full economic potential of their workforce across the gender divide are those best place to succeed and the new law ensures Kuwait has legal framework required to make it a reality.’ Commented another partner.

Attending the event were legal representatives, human resources officials and senior resources officials and senior management figures representing business from a wide range of Kuwaiti industries, including oil & gas, aviation logistics and finance and investment, as well as senior representatives from the Belgian, German and British embassies.

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