Kuwait Court of Cassation principle number 529

Summary: - Filling posts at the Kuwait Investment Authority. The general rule is that this is under special contracts whose terms the Authority has predetermined and which it concludes with employees wishing to join its service. These contracts renew automatically, and their parties may express a desire not to renew them under certain conditions, whereupon the employment relationship ends. The administrative authority may contract again with the same employee after his contract ends, on other terms, whether less or more than those of the previous contract. The reason: it is a new contract wholly disconnected from the expired contract. - An employee continuing in his work at the Authority. He may be transferred to another post, provided it is not inferior to his previous post in benefits and financial rights. Rule: The provision in Article (5) of the Personnel Affairs Regulations of the Kuwait Investment Authority—Part Two—Employment—that “All employees appointed on a regular and full-time basis, as well as Kuwaiti trainees, shall be engaged under a written contract containing, as a minimum, the conditions set out in the Authority’s Personnel Affairs Regulations and the provisions of the contract.” And the provision in Article (6), concerning employee categories and employment contracts: “A- Directors and those of equivalent standing holding senior management posts: The Board of Directors of the Kuwait Investment Authority shall appoint the Chief Executive of the Kuwait Investment Office in London and the heads of the Authority’s overseas offices. One or more Kuwaiti directors shall be appointed, reporting directly to the Managing Director ... These persons shall be appointed under contracts issued with the signature of the Managing Director. B- Advisers, experts and those of equivalent standing: Advisers and experts shall be appointed .... under special contracts, and their remuneration and terms of service shall be determined with the approval and signature of the Managing Director ..” And the provision in Article (1) of Part Eight of the Kuwait Investment Authority’s Personnel Regulations that “The employee’s service shall end in one of the following cases: (A) .... (B) ...... (C) ..... (D) ...... (E) Non-renewal of the contract.” And whereas the provision in Article (7) of Part Two of the Personnel Affairs Regulations states that “An employee may be transferred to another post, subject to the prohibition on transferring him to a lower post or reducing his pay or grade without written consent.” This indicates that filling posts at the Kuwait Investment Authority—as a general rule—is under special contracts whose terms the Authority has predetermined, which it concludes with employees wishing to join the Authority’s service according to their qualifications and experience. These contracts are signed by both parties and renew automatically. Their parties may express a desire not to renew them under certain conditions, and expression of this desire results in the contract ending for non-renewal, whereupon the employment relationship between the employee and the administrative authority ends. The administrative authority may contract again with the same employee after his contract ends on other terms, whether terms less than those of the previous contract or terms more than them, because it is a new contract wholly disconnected from the expired contract. As for an employee continuing in his work at the Authority, he may be transferred to another post, provided it is not inferior to his previous post. From which he was transferred, in benefits and financial rights.