How to Resign from an Unlimited Contract in Kuwait
Last updated: June 2026 · Legal reference: Kuwait Labour Law No. 6 of 2010, Articles 44 and 51
Quick Answer
You can resign from an unlimited contract in Kuwait at any time. Under Article 44 of Kuwait Labour Law No. 6 of 2010, you must give a minimum of three months' written notice (or more if your contract requires it). Your end-of-service gratuity (EOSB) under Article 51 is fully payable on resignation — Kuwait law does not reduce it simply because you chose to leave.
Resigning from an unlimited (indefinite) contract in Kuwait is your legal right under Kuwait Labour Law No. 6 of 2010 — no employer can prevent it. You must serve a minimum three-month notice period under Article 44, and once you have completed at least one year of service, your full end-of-service gratuity (EOSB) is payable under Article 51 regardless of whether you resigned or were terminated. This guide walks through the exact process, what your employer owes you, and what to do if they refuse to release you.
Calculate what you're owed before you resign
Use the free Kuwait EOSB Calculator to see your Article 51 indemnity and confirm your exact resignation timing.
Calculate my EOSB →What is an unlimited contract in Kuwait?
An unlimited contract — also called an indefinite contract — is an employment agreement with no fixed end date. It continues until either the employee resigns or the employer terminates it, with the required notice given by whichever party initiates the end of employment.
Unlimited contracts are the most common arrangement for private sector expatriate workers in Kuwait. They are governed primarily by Articles 44 (notice period) and 51 (end-of-service gratuity) of Kuwait Labour Law No. 6 of 2010.
Unlimited vs. fixed-term: the key difference for resignation
On an unlimited contract, either party can end employment at any time by giving the required notice. There is no "early exit" penalty for you as the employee — you simply serve or buy out the notice period, and your full EOSB is payable.
On a fixed-term contract, if you resign before the agreed end date without the employer's agreement, this may constitute a breach of contract and the employer may have grounds to claim compensation. Fixed-term contract resignations carry more legal risk and should be handled differently.
This guide covers unlimited contracts only. If your contract has a specific end date and you are not sure which type applies to you, check section 1 of your contract or the field on your residency/work permit where the contract duration is stated.
Notice period rules for unlimited contract resignation in Kuwait
Article 44 of Kuwait Labour Law No. 6 of 2010 sets the minimum notice period for monthly-paid employees on an indefinite contract at three months. This is the legal floor — your contract can specify a longer notice period, but it cannot legally require less than three months.
The notice period runs from the date the written resignation is delivered and acknowledged by the employer, not from the date of any verbal conversation. This is why written resignation letters with a timestamped delivery record — email is ideal — are critical.
For the full notice period rules and a calculator, see the Notice Period Calculator.
Step-by-step: how to resign correctly from an unlimited contract in Kuwait
Calculate your EOSB and notice timing before you resign
Before submitting your resignation, confirm how much EOSB you are entitled to and whether waiting a few extra weeks would push you across a service-length milestone (e.g. crossing the 5-year mark doubles your EOSB rate from 15 to 30 working days per year). The Smart Resignation Planner models the financial impact of different exit dates.
Submit a written resignation with a clear last-working-day date
Your resignation letter should state: your name, position, the date of the letter, your last intended working day (calculated as today's date plus your full notice period), and a clear statement that you are resigning from your position. Keep the language neutral — you do not need to give a reason.
Deliver via email and keep a timestamped copy
Email is the safest delivery method — it creates a timestamped record that is hard for either party to dispute. CC yourself. If you deliver a printed letter to HR, request a written acknowledgment or dated receipt. The notice period start date is the date of delivery, and this affects your last working day and EOSB calculation.
Serve the notice period and document your working days
Continue attending work and carrying out your duties during the notice period unless your employer agrees to release you early (with payment in lieu). Keep a record of dates worked. If your employer asks you to stop attending before the notice ends without payment, follow up in writing to document this.
Review and verify your settlement letter before signing
Your final settlement letter should itemise: EOSB (calculated under Article 51), any unused annual leave balance, notice pay (if applicable), and any other outstanding salary. Calculate your EOSB independently using the Kuwait EOSB Calculator and compare it against the employer's figure before you sign anything. Do not sign a full and final settlement if any line item is missing or the EOSB figure is lower than what you calculated — disputes are significantly harder to raise after signing.
Confirm your visa and residency release in writing
Your employer is responsible for cancelling your work permit once your employment ends. Confirm the cancellation date and ensure you receive your passport and any relevant clearance documents before you depart. If you plan to transfer to a new employer in Kuwait rather than leave the country, ensure the new employer's PRO has initiated the transfer before your current residency expires.
Your EOSB entitlement when resigning from an unlimited contract
Under Article 51 of Kuwait Labour Law No. 6 of 2010, resigning from an unlimited contract does not reduce your EOSB. The calculation is the same whether you resign voluntarily or are terminated by the employer:
Kuwait EOSB formula (Article 51 — unlimited contract)
Years 1–5: 15 working days of basic salary per year
Years 5+: 30 working days of basic salary per year (for each year beyond year 5)
Daily rate = Basic salary × 12 ÷ 365
Only basic salary counts — housing and transport allowances are excluded from the EOSB formula.
A worked example: if your basic salary is KWD 450 per month and you resign after 4 years and 8 months of service:
Daily rate: 450 × 12 ÷ 365 = KWD 14.79
Annual EOSB (years 1–5): 14.79 × 15 = KWD 221.92 per year
Service: 4 years + 8 months = 4.67 years
Total EOSB: 221.92 × 4.67 = KWD 1,036.36
For the full breakdown of what counts as basic salary, how partial years are calculated, and what happens if your contract uses a blended "total salary" figure, see the Kuwait EOSB Guide.
Timing matters — especially around the 5-year mark
If you are approaching five years of service, even a few weeks' difference in your resignation date can materially change your EOSB. Crossing the 5-year threshold means the years beyond it accrue at 30 working days per year rather than 15 — double the rate. If you are at 4 years and 10 months, it is almost always worth waiting to cross the 5-year anniversary before resigning. Use the Smart Resignation Planner to model the exact difference.
What your employer owes you in the final settlement
When you resign from an unlimited contract and complete your notice period, your final settlement must include all of the following:
See the Kuwait Final Settlement Checklist for a complete line-by-line breakdown of everything that should appear in your exit paperwork.
What to do if your employer refuses to release you
Once you have submitted a written resignation and served your full notice period, an employer has no legal basis to prevent your release. If your employer refuses to process your clearance, withholds your settlement, or threatens to file a complaint against you, here is what to do:
Compile your documentation
Gather: your resignation letter with proof of delivery and date, your employment contract, attendance records for your notice period, and any written communication with HR about your exit. This is your evidence file if a PAM complaint becomes necessary.
Send a formal written request to HR
Email HR and your direct manager stating that your notice period has been fully served as of [date] and requesting immediate processing of your clearance, final settlement, and passport (if held). This creates a timestamped record of the request.
File a complaint with the Public Authority for Manpower (PAM)
If the employer does not respond or refuses without legal grounds, file a complaint at PAM (formerly known as Shoon). Bring your employment contract, resignation letter, and any supporting records. PAM will summon a company representative. In most cases, an employer who cannot cite a specific legal basis for withholding release will be ordered to process it.
Do not abandon your post before PAM resolves the dispute
Leaving without completing the process can expose you to an absconding complaint, even if you are clearly in the right legally. Stay in contact, document everything, and let PAM arbitrate rather than walking away unilaterally.
Passport retention is illegal
If your employer is holding your passport as leverage — whether during the notice period or after it ends — this is unlawful in Kuwait regardless of the employment dispute. Report it as part of your PAM complaint. Document when and how the passport was retained and include this in your written record.
Frequently asked questions
Can I resign from an unlimited contract in Kuwait?
Yes. Kuwait Labour Law No. 6 of 2010 gives any private sector employee the right to resign from an unlimited (indefinite) contract at any time. You cannot be legally prevented from resigning. You must give the required notice period — a minimum of three months for monthly-paid employees under Article 44 — and your employer must process your final settlement, including EOSB, within the timeframe set by law.
What notice period do I have to serve on an unlimited contract in Kuwait?
Under Article 44 of Kuwait Labour Law No. 6 of 2010, the minimum notice period for monthly-paid employees on an indefinite (unlimited) contract is three months. Your employment contract may specify a longer notice period — for example, some contracts require six months' notice for senior roles — and if so, the contractual period is enforceable. However, no contract can legally set the notice period below three months.
Do I get EOSB if I resign from an unlimited contract in Kuwait?
Yes. Under Article 51 of Kuwait Labour Law No. 6 of 2010, you are entitled to end-of-service gratuity (EOSB) when you resign from an unlimited contract, provided you have completed at least one year of continuous service. The formula is 15 working days of basic salary per year for the first five years, and 30 working days per year for each year beyond five. Unlike some other GCC countries, Kuwait does not reduce your EOSB simply because you chose to resign rather than be terminated.
What is the difference between an unlimited and a fixed-term contract in Kuwait?
An unlimited (indefinite) contract has no specified end date and continues until either party gives notice to terminate. A fixed-term contract has a defined end date — for example, a two-year renewable contract. Under Kuwait Labour Law, the resignation rules, notice period obligations, and EOSB entitlements differ between the two. On a fixed-term contract, resigning early before the agreed end date may expose you to a breach of contract claim unless the employer agrees to release you.
What happens if I resign without serving the notice period on an unlimited contract in Kuwait?
If you resign without serving the required notice period, your employer can deduct salary equivalent to the unserved notice days from your final settlement. This is permitted under Kuwait Labour Law. Your EOSB entitlement for completed years of service is still payable — the employer cannot withhold EOSB as a penalty for insufficient notice beyond what the law allows for notice deductions.
Can my employer refuse to accept my resignation in Kuwait?
No. Under Kuwait Labour Law, an employer cannot legally refuse a resignation or compel you to remain employed against your will. They can insist you serve the full contractual notice period (or pay in lieu of it), but they cannot prevent the resignation itself from taking effect. If an employer refuses to process your release after you have submitted a written resignation and completed your notice period, you have the right to file a complaint with the Public Authority for Manpower (PAM).
How should I submit my resignation in Kuwait to protect my rights?
Always submit your resignation in writing, with a clear statement of your last intended working day based on your contractual notice period. Keep a copy of the resignation letter with evidence of delivery — email is ideal as it creates a timestamped record. If you hand-deliver a paper letter, request a signed acknowledgment from HR. A verbal resignation, while technically valid, creates a gap in evidence if a dispute arises later about when your notice period started.
Can my employer deduct from my EOSB when I resign from an unlimited contract in Kuwait?
Your employer's ability to deduct from EOSB is legally limited. They may deduct salary for unserved notice days and any court-ordered amounts. They cannot deduct EOSB simply because you resigned, cannot offset training costs without a valid contractual clawback clause validated by a court, and cannot withhold EOSB as leverage while waiting for you to complete a handover. Your EOSB for completed service years is a statutory right, not a discretionary payment.
Key Takeaways
- ✓ You have an unconditional right to resign from an unlimited contract in Kuwait — no employer can block it
- ✓ Minimum notice period is 3 months for monthly-paid employees under Article 44 — your contract may require more
- ✓ EOSB under Article 51 is fully payable on resignation — Kuwait does not penalise you for choosing to leave
- ✓ Always resign in writing with proof of delivery — your notice period clock starts from the date the employer receives it
- ✓ Check your EOSB independently before signing any settlement — once signed, disputes are much harder
- ✓ If your employer refuses to release you, file a complaint with PAM — do not abandon your post before it is resolved
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Need legal help?
Employer refusing to release you or withholding your settlement?
Fathima Karama is a Kuwait-based employment law specialist who can advise on your rights under Articles 44 and 51, review your settlement letter, and guide you through a PAM complaint if your employer is not complying with Kuwait Labour Law.
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Reviewed against Kuwait Labour Law No. 6 of 2010 — June 2026. This guide is for informational purposes only and does not constitute legal advice.