Kuwait has rolled out a temporary labor transfer mechanism aimed at easing hiring costs and improving workforce distribution across key sectors, as part of broader reforms to modernise its labor market.
Six Key Sectors Open for Limited Worker Mobility
The Public Authority for Manpower (PAM) confirmed that the new policy will allow workers to transfer between six sectors—agriculture, industry, grazing, fishing, government contracts, and small projects. The measure will come into effect on May 1 and will remain valid for two months.
According to Nasser Al-Mutairi, Deputy Director for Labor Affairs, the move responds directly to rising recruitment costs and shifting economic conditions. He noted that authorities designed the decision carefully to ensure balance while improving flexibility.
Reform Aims to Address Labor Market Imbalances
Al-Mutairi explained that Kuwait introduced the policy following a comprehensive review of regional developments and labor shortages. The initiative aligns with directives from Sheikh Fahd Al-Yousef, First Deputy Prime Minister and Minister of Interior.
Moreover, the reform seeks to redistribute manpower more efficiently. It also aims to boost productivity and reduce distortions caused by uneven labor availability across sectors.
Previous Restrictions Revisited
Authorities had enforced sector-specific transfer restrictions since 2015. However, officials clarified that these were regulatory controls rather than a complete ban. These rules primarily protected sectors requiring specialised skills, such as agriculture and fisheries.
Now, the temporary easing signals a shift toward a more flexible and responsive labor framework.
Streamlined Legal Process and Worker Protections
Ali Al-Dalmani, Director of the Labor Relations Department, stated that transfers will follow clear legal procedures based on mutual consent between employers and employees. Workers can move either after resignation or upon completing their service.
Additionally, PAM has digitised the process to ensure faster approvals and greater transparency. The authority continues to prioritise dispute resolution through amicable means. However, if conflicts persist, labor law provisions will apply.
Transparency and Multilingual Outreach
Mohammed Al-Muzaini, Director of Public Relations and Media, highlighted PAM’s commitment to transparency. He noted that the authority regularly publishes information across official platforms in multiple languages.
This approach ensures accessibility for Kuwait’s diverse workforce, which exceeds two million workers.
