Kuwait Audit Bureau Releases Recommendations to Address Population Imbalance

The Kuwait Audit Bureau’s report on evaluating government procedures provides essential insights and directives for businesses in the country, who must pay attention to any changes in rules regarding labor management.

By Melissa Cyrill

The Audit Bureau of Kuwait recently released a report highlighting key recommendations made by the National Committee for Regulating the Population Structure. The recommendations aim to tackle the growing imbalance in the population structure and streamline government procedures to enhance efficiency and effectiveness.

Businesses operating in Kuwait should pay attention to the Audit Bureau’s report as it provides essential guidelines for regulatory compliance, labor market adaptation, technological integration, operational efficiency, corporate social responsibility, strategic planning, and economic efficiency. By aligning with these recommendations, businesses can not only avoid penalties and legal issues but also position themselves for sustainable growth and success in the evolving Kuwaiti market.

Key recommendations

1. National Labor Market Platform:
   • Objective: Create a unified national platform for the labor market.
   • Responsible Authorities: Public Authority for Civil Information (PACI) and Public Authority for Manpower (PAM).
   • Action: Coordinate with relevant bodies to launch the platform and submit a time plan for implementation.
2. Worker’s Identity Integration:
   • Objective: Enhance identification processes.
   • Action: Integrate worker identities through the ‘My Identity’ application.
3. Kuwait Visa Application:
   • Objective: Simplify visa application processes.
   • Action: Approve and launch the ‘Kuwait Visa’ application.
4. Kuwaitization Project:
   • Objective: Promote the employment of Kuwaiti nationals.
   • Action: Launch the Kuwaitization project for cooperative societies in collaboration with relevant authorities.
5. Electronic Lease Contract:
   • Objective: Streamline lease agreements.
   • Responsible Authority: PACI.
   • Action: Launch an electronic lease contract system within six months and provide a time plan for implementation.

Additional measures proposed

1. Electronic Employment Contract:
   • Objective: Modernize employment agreements.
   • Responsible Authority: PAM, in coordination with the Fatwa and Legislation Department.
   • Action: Study the legality and feasibility of electronic employment contracts and form a labor market development team.
2. Follow-Up on Government Measures:
   • Objective: Ensure compliance and efficiency in reducing marginal labor.
   • Action: Continue amending laws and regulations to protect the rights of all parties, ensuring compliance with human rights and legal standards.

Actions to be taken by the Public Authority for Manpower

1. Employer Compliance:
   • Objective: Ensure employer adherence to regulations.
   • Action: Suspend files of violating employers and fine non-compliant companies as per Resolution No. 2022/156, which imposes a fine of 100 dinars per violating worker.
2. Addressing Expatriate Worker Increase:
   • Observation: There was a 21 percent increase in expatriate workers in 2023 compared to 2021.
   • Action: Implement significant reforms to manage and regulate foreign labor more effectively.

Comprehensive Labor Policy and Reforms

1. Establishing a Clear Labor Policy:
   • Objective: Identify actual needs for foreign workers in specific sectors.
   • Action: Formulate a definitive labor policy for the private and oil sectors.
2. Reviewing Regulations and Laws:
   • Objective: Protect the rights of foreign workers and employers.
   • Action: Revise existing regulations to ensure financial and living rights.
3. Solving Legal, Financial, and Humanitarian Issues:
   • Objective: Address and resolve problems faced by foreign workers.
   • Action: Ensure all legal, financial, and humanitarian aspects are considered and resolved.
4. Accountability and Legal Action:
   • Objective: Prevent misuse of the labor system.
   • Action: Hold institutions and companies accountable for bringing in excess workers and hiring after contract expiration, enforcing strict legal actions.
5. Integrated Program for Workforce Nationalization:
   • Objective: Replace expatriate workers with nationals.
   • Action: Develop a strategic plan to achieve workforce nationalization without compromising economic performance.
6. Harsher Penalties for Residency Trafficking:
   • Objective: Deter residency trafficking.
   • Action: Impose stricter penalties and refer violators to judicial authorities.
7. Changing Societal Perception of Craftsmanship:
   • Objective: Value and promote craftsmanship and manual work.
   • Action: Organize events to highlight the importance and value of these professions.

Conclusion

The Audit Bureau’s report on the follow-up of recommendations to evaluate the efficiency and effectiveness of government procedures offers critical insights and directives that are essential for businesses operating in Kuwait. Businesses must pay attention to government directives and changes to legal rules to avoid penalties, improve operational efficiency, and align with national development goals. Embracing these changes can lead to better workforce planning, cost management, and a positive community impact, ensuring sustainable growth and compliance with new laws.

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