Employers must register with wage protection program

IMPACT – MEDIUM

What is the change? The Kuwaiti government has put in place a rule that requires companies sponsoring foreign nationals on work permits to register with the country’s Wage Protection System and pay expatriate workers through local banks.

What does the change mean? Companies that have not already registered with the WPS should do so as soon as possible. Companies that are not registered may be barred from sponsoring foreign nationals.

• Implementation time frame: Immediate.
• Visas/permits affected: Work permits.
• Who is affected: Employers sponsoring foreign nationals working in Kuwait.
• Business impact: The new requirement adds an administrative requirement for businesses that are not currently registered with the WPS system.

Background: Kuwait’s Wage Protection System took effect Nov. 29 and requires employers to pay employees through an authorized bank that is monitored by the Kuwaiti government, thereby ensuring that employers do not flout wage laws.

BAL Analysis: Companies should make sure they are registered with the system and in compliance with wage payment through a Kuwaiti bank account. Employers that are not in compliance may be prohibited from filing work permit applications.

This alert has been provided by the BAL Global Practice group and our network provider located in Kuwait. For additional information, please contact your BAL attorney.

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