Company calculating indemnity on old salary
I have been working for the past 4 years in one company. Four months ago I got a promotion and the company increased my salary. After one month I gave in my resignation with three months notice. I am going back to my place. This month, the 25th is my last working day. I have 60 days leave, service and this month’s salary. But my company is calculating all these things according to my old salary. Is this is correct or can I file a complaint in Shoon (Labor Dept)? If I have to file a complaint, when do I have to file the complaint, before cancellation of the visa?
Name withheld
Answer: The company is wrong. It does not have the right to decide what salary to use for the end of service benefits.
The Labor Law is very clear on this point and says that the ‘last salary’ must be used for indemnity, unpaid leave and all the other calculations. Your company is just doing what some others are doing — trying to use their employees ignorance of the law to their own benefit. Bring this to the notice of your company and if it doesn’t agree you can file a complaint with the Labor Office in your area. You can also refuse to sign the clearance letter when you go to the Labor Ministry for cancellation of your work permit. You will be asked whether you have been paid your dues and you can tell the official there that the company is trying to pay you less than what you should get.