What defines arbitrary dismissal in Kuwait?

It is the employer ending a worker’s contract without legitimate cause, on retaliatory or malicious grounds, retaliation for a labor complaint or an asserted legal right, or without honoring the statutory notice period.

Is a worker arbitrarily dismissed entitled to the full gratuity?

Yes — arbitrary dismissal does not trigger the Article 53 resignation reduction, so the worker is entitled to the full gratuity calculated under Article 51, plus whatever damages a court awards.

Is there a fixed compensation amount for arbitrary dismissal?

No, the law does not specify a fixed amount or number of months. Compensation for arbitrary dismissal is assessed by the court case-by-case, based on years of service, salary, and the actual harm the worker proves.

What if my employer pressured me into resigning?

If the resignation resulted from coercion or pressure by the employer to circumvent arbitrary-dismissal rules, the worker may prove this before the labor relations department or the courts to have the case re-characterized as arbitrary dismissal.

Resignation vs. Arbitrary Dismissal in Kuwait: How It Changes What You’re Owed

The core distinction

How an employment contract ends — the employee resigning, or the employer dismissing them — fundamentally changes the end-of-service gratuity calculation and what additional compensation may apply.

Resignation is initiated by the employee, by their own choice, and gradually reduces the gratuity by tenure under Article 53.
Arbitrary dismissal is initiated by the employer with no legitimate cause, or a retaliatory/discriminatory motive, and carries no gratuity reduction — the full amount is owed under Article 51, plus possible court-determined damages.

What arbitrary dismissal means for your payout

Arbitrary dismissal is termination by the employer without a legitimate cause tied to competence, conduct, or job requirements — or one driven by retaliatory or discriminatory motives, such as firing an employee for filing a labor complaint or asserting a legal right.

When dismissal is proven arbitrary, no reduction applies to the gratuity — the employee receives it in full, as if service ended for a reason outside their control, plus notice-period compensation if the employer failed to honor it, plus court-awarded damages for the dismissal itself. The law sets no fixed amount or number of months for those damages; the assessment is entirely case-by-case, based on tenure, salary, and proven harm.

Watch for disguised dismissals

Some employers pressure employees into a "voluntary" resignation to avoid arbitrary-dismissal obligations. If coercion is documented — for example, being forced to sign a resignation under threat of visa non-renewal — the employee can contest the characterization before PAM’s labor relations department, and later before the courts if no settlement is reached.

What to do if you believe your dismissal was arbitrary

Document every communication or notice related to the termination.
Do not sign any resignation or "final settlement" acknowledgment without reading it carefully or seeking legal advice.
File a complaint with PAM’s labor relations department — see the dedicated guide on filing a labor complaint.

Calculate your own number

Use the free end-of-service calculator to apply these rules to your own salary and dates.

Open the calculator

Common questions

What defines arbitrary dismissal in Kuwait?: It is the employer ending a worker’s contract without legitimate cause, on retaliatory or malicious grounds, retaliation for a labor complaint or an asserted legal right, or without honoring the statutory notice period.
Is a worker arbitrarily dismissed entitled to the full gratuity?: Yes — arbitrary dismissal does not trigger the Article 53 resignation reduction, so the worker is entitled to the full gratuity calculated under Article 51, plus whatever damages a court awards.
Is there a fixed compensation amount for arbitrary dismissal?: No, the law does not specify a fixed amount or number of months. Compensation for arbitrary dismissal is assessed by the court case-by-case, based on years of service, salary, and the actual harm the worker proves.
What if my employer pressured me into resigning?: If the resignation resulted from coercion or pressure by the employer to circumvent arbitrary-dismissal rules, the worker may prove this before the labor relations department or the courts to have the case re-characterized as arbitrary dismissal.

Sources

Kuwait Labor Law No. 6 of 2010, Article 51 — end-of-service gratuity formula
Kuwait Labor Law No. 6 of 2010, Article 53 — resignation gratuity tiers
Al Subaie Law Firm — arbitrary dismissal definition and compensation practice

This guide provides general information, not legal advice. For advice specific to your situation, consult the Public Authority for Manpower (PAM), the Ministry of Interior, or a licensed lawyer.