In a significant move to enhance workers’ rights and streamline regulatory compliance, Kuwait’s Public Authority for Manpower (PAM) has announced the full digitization of labour complaint procedures for the private sector. This initiative is complemented by stringent measures against companies violating work permit regulations, reflecting the country’s commitment to upholding labour standards and aligning with international human rights practices.
Digitization of Labour Complaints
Kuwait’s decision to digitize labour complaints is a major step forward in modernizing its employment sector and making the system more accessible to workers. PAM’s new electronic system allows private sector workers to file complaints related to unpaid wages, end-of-service benefits, passport and ID confiscation, requests to leave the country, and employer transfer requests, among other grievances. This system eliminates the need for workers to physically visit PAM’s dispute department, except when attending scheduled hearings.
Currently, PAM’s website offers online services for registered workers to submit complaints, track cases, and inquire about absconding reports or employment status. However, workers must first visit PAM in person to register and update their phone numbers to receive login credentials. While information about the service is available in both English and Arabic, the system itself is currently accessible only in Arabic.
This move aligns with a broader regional trend of digitizing worker rights procedures under the guise of efficiency. Last year, Kuwait’s PAM introduced an electronic service for handling labour disputes involving domestic workers, a move aimed at ensuring faster case resolutions and reducing bureaucratic delays.
Challenges and Considerations
While digitization offers efficiency, it also presents challenges such as lack of awareness, language barriers, limited technological literacy, and potential technical failures that could make electronic platforms unreliable or inaccessible. Many workers, particularly those from lower-income backgrounds, may not be comfortable using digital systems or may lack access to smartphones and the internet.
Additionally, while digital platforms streamline processes, they cannot replace the need for government agencies to interact directly with workers. Impersonal digital complaints may not always capture the depth of a problem or the many nuances of the issues workers go through. For this reason, experts argue that Kuwait must ensure strong offline support systems remain in place alongside the digital transition.
To make the digital complaint system more effective, authorities should consider adding multilingual support and increasing public awareness campaigns to educate workers on how to use the system. Employers should also be required to inform their workers about this service to prevent exploitation and ensure fair treatment.
Strict Penalties for Work Permit Violations
In tandem with the digitization initiative, Kuwait has introduced stringent penalties for companies violating work permit regulations. Ministerial Order No. 1 of 2025, issued on February 19, 2025, amends existing labour regulations to bar non-compliant companies from key employment-related activities. Companies found violating work permit rules will no longer be able to:
- Add new work permits for employees
- Update permit details such as address or company information
- Hire new workers
- Adjust manpower estimates
These restrictions apply to companies with inactive permits, permits linked to closed files, or permits registered without a valid address. Authorities have made it clear that firms engaged in illegal visa trading or other labour law violations will face severe consequences. The new law aims to intensify the crackdown on fraudulent employment practices and ensure that only compliant companies can engage in hiring and employment activities.
This measure is particularly important in Kuwait’s ongoing efforts to combat the widespread issue of visa trading, where companies issue work permits to workers but do not provide actual jobs. Many foreign workers arrive in Kuwait expecting employment opportunities, only to find themselves abandoned and forced to work illegally in unsafe conditions. By preventing companies with a history of violations from issuing new permits, the government aims to significantly reduce this exploitative practice.
Additionally, companies seeking to regain compliance must resolve outstanding violations before they can register new permits. This ensures accountability and prevents businesses from repeatedly exploiting loopholes in the system.
Impact on the Labour Market
These initiatives are expected to have a profound impact on Kuwait’s labour market and overall economic stability. Some of the anticipated benefits include:
Empowerment of Workers
The digital complaint system empowers workers by providing them with a direct and secure way to report grievances without fear of retaliation. Previously, many workers were hesitant to file complaints due to intimidation by employers or lengthy bureaucratic processes. Now, with an easier and more transparent mechanism in place, workers are more likely to seek justice and demand their rights.
Enhanced Compliance Among Employers
By imposing strict penalties on non-compliant companies, Kuwait aims to deter violations and promote adherence to labour laws. Companies that previously engaged in exploitative practices will now be forced to reconsider their policies or face business restrictions. This shift is expected to create a more ethical and responsible corporate environment.
Boost to Kuwait’s International Reputation
These measures enhance Kuwait’s standing with international organizations focused on migrant workers and human rights. In the past, Kuwait, like other Gulf nations, has faced criticism over the treatment of foreign workers. By implementing progressive labour reforms, the country is demonstrating its commitment to improving working conditions and protecting employee rights.
Long-Term Economic Benefits
A fair and well-regulated labour market contributes to economic growth and stability. When workers are treated well and paid fairly, they are more productive, leading to better business performance and overall national development. By ensuring that companies comply with labour laws, Kuwait can attract more ethical investors and businesses, boosting its economy in the long run.
Conclusion
Kuwait’s dual approach of digitizing labour complaints and enforcing strict penalties on non-compliant companies underscores its commitment to protecting workers’ rights and maintaining a fair labour market. While the digital complaint system is a step toward modernization, authorities must ensure it is accessible to all workers, regardless of their technical skills or language proficiency.
On the other hand, the enforcement of strict penalties against companies violating work permit regulations is a crucial step in combating visa fraud and ensuring ethical employment practices. These reforms send a strong message that labour laws must be respected and that violators will face serious consequences.
As these initiatives take effect, they are poised to set a precedent for other nations in the region to follow, promoting a culture of compliance and respect for labour rights. If implemented effectively, they could lead to a significant transformation in Kuwait’s labour landscape, benefiting both workers and businesses alike.
Moving forward, continuous monitoring, evaluation, and feedback from workers and employers will be essential to refining and improving these policies. Kuwait’s efforts to balance technological advancements with worker protections could serve as a model for other countries seeking to modernize their labour systems while ensuring fairness and justice for all employees.
