The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
Essentially the agency is a funded through payments from both the employer and the employee. Under law NO. 61. of 1976 ( the “Social Insurance Law”), the employer must register its new employee within 10 days of employment. Upon registration, the employee and the employer are to pay a certain percentage of the employee salary into the PIFFS fund.
In addition to the PIFSS system, Kuwait has also created the Manpower and Government Restructuring program (“MGRP”) to ensure the continued welfare for citizen employed in the private sector. The MGRP essentially provides a citizen with a monthly supplement to his or her salary and the amount depends on the educational background of the citizen: the higher the education, the higher the supplement.
As disused above, the employer is obligated to register the employee with PIFFS; however the same is not true for the MGRP. In fact, it is the Employees responsibility to register himself, or herself, with the MGRP.
Although the employer may fail to register the employee, the social insurance Law provides an avenue to the employee to register himself or herself with PIFFS in the event the employer fails to do so. Thus, the employee cannot claim that due to the employer’s failure to register he or she with PIFFS has detrimentally affected his/her entitlements under the MGRP program.
It should be worth noting that larger companies, though required to register an employee within 10 days of employment, do so periodically throughout the year for efficiency purposes. The employer, who files a late registration, pays a nominal fee.
Given this common practice, an awareness campaign should be considered for the employees of a company to inform them of the employee’s right to register themselves with PIFFS so to avoid any possible delay to MGRP benefits. Lastly, to a certain extent, an employee is able to retroactively register himself with PIFFS and thus receive retroactive payments from MGRP; however, there are deadlines which must be followed.