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HomeGulf-PoliticsWage Protection Crackdown Targets Kuwait Companies

Wage Protection Crackdown Targets Kuwait Companies

Kuwait is strengthening its wage protection measures, warning businesses that labor laws will be enforced without exceptions. First Deputy Prime Minister and Interior Minister Sheikh Fahad Yousef Saud Al-Sabah announced the measures during a meeting with private sector representatives. He also said the Amir had instructed the Public Authority for Manpower to dedicate one day each week to receiving citizens.

Sheikh Fahad stressed that the law applies equally to everyone, regardless of status or personal connections. He added that the Amir had emphasized that even members of his own family must obey the law. Therefore, he urged business owners to follow regulations and warned that authorities would hold violators accountable.

During the meeting, officials discussed around 10,000 companies with five or more registered workers. Authorities are reviewing these businesses following reports of unpaid salaries lasting between 12 and 18 months. Sheikh Fahad described the situation as serious, particularly for subcontracted workers employed at cooperative societies.

To address the problem, authorities have introduced an automated system that suspends company files when salary payments become irregular. According to the minister, this system has helped reduce labor strikes caused by unpaid wages. He also identified salary violations, human trafficking, and money laundering as issues harming Kuwait’s international reputation.

Sheikh Fahad further warned against “tadmeen,” a practice in which businesses operate under the names of Kuwaiti citizens. He said some citizens become involved in financial violations without fully understanding the companies registered under their identities. In one case, a citizen reportedly listed as earning KD3,000 monthly received only KD180.

The minister also described a restaurant license registered under one individual. Around KD70 million reportedly passed through the business in cooperation with two other companies. He warned that such cases could damage Kuwait’s standing with the Financial Action Task Force and other international monitoring bodies.

Authorities are preparing broader measures against businesses that breach labor regulations. Sheikh Fahad said officials could close all company files and licenses, rather than suspending only the file linked to a specific violation. He also instructed manpower officials to make labor needs assessments available without requiring inspections. However, he stressed that anyone breaking the law would face strict accountability.

Meanwhile, the government is examining changes to workers’ legal status and employment arrangements. One proposal would allow workers on government contracts to enter the wider labor market. Officials are also considering whether domestic workers holding Article 20 visas could transfer to Article 18 visas for private-sector employment.

Sheikh Fahad said authorities had deported 300 delivery workers in recent days for various violations. He encouraged companies to recruit experienced delivery workers and drivers who receive proper training in their home countries. However, he criticized excessive working hours and insisted employers must not force delivery workers to work 18 hours a day.

He also called on business owners to treat expatriate workers fairly and consider their living conditions. His remarks highlighted the need to balance labor law enforcement with better employment practices. Meanwhile, Public Authority for Manpower Director General Rabab Al-Osaimi confirmed that authorities had suspended the files of 10,000 companies over unpaid wages since September.

Al-Osaimi said employers must pay salaries before the seventh day of the following month. When authorities suspend a company’s file, labor support payments to Kuwaiti citizens registered through that business are also stopped. She added that employers may pay newly arrived workers in cash only during their first two months in Kuwait.

The authority will also examine applications to transfer between employers more closely. Al-Osaimi explained that officials would require valid reasons before approving such requests. These measures aim to prevent misuse of worker transfers and strengthen employer accountability.

Overall, Kuwait’s wage protection crackdown reflects a wider effort to improve salary compliance and address financial misconduct. Authorities are also seeking stronger safeguards for expatriate workers and greater transparency across the private sector. Businesses now face increased pressure to meet their legal obligations and maintain proper employment records.

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