Indemnity for workers on Contractual Basis
My former company is telling me that I am not entitled to indemnity because I was working on a contractual basis. My contract was renewed annually but I have never received any end-of-service settlement at the end of each contract. Is there an exception to the payment of indemnity. As I checked in the Labor Law, all employees (private sector) are entitled to end of service benefits, even those who are per day, per hour, or per piece workers.
If I am entitled to indemnity, how much should I get? I resigned after five years in the service (Aug 1, 2006-Aug 31, 2011).
Name withheld
Answers: The company is not telling the truth. You should get indemnity unless a certain part of your salary is designed as ‘indemnity’ in your contract. For example, some companies may mention that your salary is KD 600 but it will give you KD 650 every month with KD 50 being a part of the indemnity that you would receive at the end of your contract.
While such a thing is acceptable, there is absolutely no way that a firm can get out of its obligation to pay indemnity as mandated by the Labor Law.
In your case, as you have served over 5 years, you should get two-thirds of the indemnity.