Kuwait Court of Cassation principle number 2856

The employment contract. Its termination upon the cessation of the establishment or the transfer of its ownership by inheritance or any legal disposition to someone other than the employer. Its effect. The worker’s right to claim his financial entitlements arises. The worker’s continuation in the successor’s service while retaining his gratuity for the previous period. Art. 9 of Law 38 of 1964. Its implication. A new employment relationship arises, governed by the conditions agreed upon, even if they are the same conditions as those of the contract with the predecessor. Its condition. There must be no interval between employment with the predecessor and employment with the successor.