Labour Law › Termination of Contract
Article 50: Contract Expiration Events
In forceIn simple words
A contract ends if the employer is declared bankrupt by a final court ruling or the business closes permanently. If the business is sold, merged or inherited, your contract continues with the new owner on the same terms, with all your rights.
Example
Company sold to a new owner
SituationMaria’s restaurant is sold. The new owner says her 7 years with the old owner don’t count.
What the law saysWhen a business is sold, merged or inherited, the contract continues on the same terms. Her 7 years count, and the new owner takes over all the old owner’s obligations.
Names are made up for illustration.
Official text of Article 50
a) Issuance of a final court judgment that declares the bankruptcy of the employer.
b) The final closure of the firm.
However, if the firm is sold or merged in another firm or if it is transferred by means of inheritance, donation or any other legal action, the work contract shall be effective on the successors under the same conditions mentioned therein. The rights and obligations of the previous employer towards the labourers shall be transferred to the employer who replaces him.
Reference & sources
Kuwait Private Sector Labour Law No. 6 of 2010, Article 50 (Contract Expiration Events), Official Gazette Kuwait Al-Youm, Issue No. 963 (2010). Checked October 2026.
Related articles
- 51 · Terminal Service Indemnity
- 31 · Automatic Renewal
- 41 · Termination of Service
- 42 · Deemed Resignation
- 43 · Suspension Due to Imprisonment
- 44 · Termination with Notice
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.