Labour Law › Disciplinary Penalties & Deductions
Article 40: Deducted Amounts Fund
In forceIn simple words
Money deducted from workers as penalties must go into a fund used for workers’ social and cultural activities. If the company closes, the money is shared among the workers based on their years of service.
Official text of Article 40
The employer shall deposit the deducted amounts from the labourer's wage in a fund to be allocated for social, economic and cultural activities for the benefit of the labourers. The deduction penalties imposed on the laborers shall be registered in a special record showing the labourer's name, amount of deduction and the cause of its application. In the event of dissolution of the firm, the deduction proceeds in the fund shall be distributed among the existing workers at the time of dissolution in proportion to the service term of each. The Minister shall issue a decision on the rules and regulations organizing the above fund and the distribution method.
Reference & sources
Kuwait Private Sector Labour Law No. 6 of 2010, Article 40 (Deducted Amounts Fund), Official Gazette Kuwait Al-Youm, Issue No. 963 (2010). Checked October 2026.
Related articles
- 35 · Rules and Regulations of Penalties
- 36 · Approval of Penalty Regulations
- 37 · Notification of Punishments
- 38 · Wage Deductions
- 39 · Suspension for Investigation
General information, not legal advice. The Arabic text of the law is the official version (Article 29). For your case, contact the Public Authority for Manpower or a lawyer.