Residency Transfer For SME Workers Cut To One Year With Sponsor Approval

The Public Authority for Manpower has announced a significant change to the regulations regarding the transfer of workers within the small and medium enterprises (SME) sector. The required period for transferring workers within this sector has been reduced from three years to just one year. However, this change is conditional upon the approval of the worker’s sponsor.

Limitations on Transfers to the Private Sector

One crucial clarification that came with the new update is that transfers from the SME sector to the private sector are still not permissible. This decision aims to prevent workers from moving between sectors without proper adherence to regulations. The Public Authority for Manpower emphasized the importance of maintaining balance and ensuring that transfers within the SME sector itself are carried out within the revised one-year time frame.

Addressing Challenges in the SME Sector

The modification in transfer regulations is designed to address some of the operational challenges faced by small and medium-sized businesses. Many SMEs experience difficulties due to underperforming projects or the inability to fully utilize their workforce. This change in the transfer period is expected to give businesses more flexibility in managing their staff and improve overall productivity.

How the Adjustment Benefits SMEs and Workers

By reducing the transfer period to just one year, the Public Authority for Manpower is providing SMEs with more agility in responding to business needs. Companies can now transfer workers to different roles within the sector more quickly, enabling them to adapt to changing market conditions or operational demands. Additionally, workers benefit from the ability to find more suitable roles within the sector if their current positions become redundant or unfit.

Future Outlook for SMEs and Workforce Mobility

While the new regulations provide short-term relief, it remains to be seen how they will impact the long-term growth and stability of the SME sector in Kuwait. Experts suggest that this change could enhance workforce mobility and contribute to a more dynamic labor market in the country, potentially benefiting both businesses and workers alike.