One of these laws relates to the subject of social insurance, namely unemployment insurance law. In general, social insurance is a system whereby people receive benefits or services in consideration for contributions made to an insurance program.

BACKGROUND

The government of the State of Kuwait created the Public Institute for Social Security (“PIFSS”) in order to guarantee the continuous welfare of the Kuwaiti population through the application of a social security system. This system is funded by payments from both employers and Kuwaiti employees. Pursuant to the Social Insurance Law (Law No. 61 of 1976), an employer is required to register its new Kuwaiti employee within 10 days of employment. Upon registration, the employee and the employer are to pay a certain percentage of the employee's salary into the PIFFS fund. Larger companies, though required to register an employee within 10 days of employment, often do so periodically throughout the year for efficiency purposes. The employer who files a late registration pays a nominal fee.