Indemnity & Notice Period

I am working with a private company as a manager and I am drawing a salary of KD 500/- per month. I have completed 13 years of service with this company. Kindlylet me know what will be the calculation of my indemnity as per the Kuwait Labour Law applicable to private firm?

Name withheld
The law is very clear on the issue. If you resign after completion of 10 years service with one firm you are entitled to your full indemnity. There will be no deducation, unlike before the new Labour Law was enacted when resignation resulted in a 50 percent deducation of indemnity.
So, your indemnity calculation will be as follows:
First five years   
    = 15 days pay for each year of service
    = 75 days ÷ 26 working days
    = 2.88 months salary
Next 8 years
    = 1 month’s salary for each year of service
    = 8 months indemnity
Total indemnity
    = 10.88 months salary
    = 10.88 x KD 500
    = KD 5,440



I completed three years with the company in October 2012. In September 2012 I filed my resignation and my manager said according to the Kuwait Law I should give three months’ notice. So I agreed. After the three months notice the company has given me a hard time with my visa. They even prepared a letter that my visa should be transferred in 40 days, otherwise I will pay KD 5.000 per day for the delay or they will take legal action against me. I signed the paper as I really wanted to leave the company.
My question is, can the company take any legal action against me. What is my right — can the Ministry of Social Affairs & Labor help me?
Also, do I get any indemnity for this period of service?
Name withheld
The only thing the company can do is request the Ministry of Social Affairs & Labor to cancel your residence if you take too much time to transfer your residence. The company has the right to do this as you can’t indefinitely prolong this transfer. Normally, the companies give about a month. But the company can’t take money from you for any reason. It doesn’t matter if you have signed any paper or not.
Secondly, if you have completed 3 years service you are entitled to half the indemnity if you resign.
And lastly, if you face problems in any of the above, you must file a complaint with the Labor Office in your area.



Notice period

Our company has given a termination letter to one of my friends who worked in this company over 10 years. The contents of his termination letter are as follows:
“We regret to inform you that effective 06-01-2013 your services will not be required with a three months notice period.
“You may contact the A/C Dept to settle all your accounts with our company.”
My question: My friend from 06-01-2013 is not doing any work for the company. When anyone asks him to do work he says that in his termination letter it is written his services are not required from 06-01-2013, so he is not authorized to do any work. From that day onward he is coming to the office on his own i.e. 10:00 am or 10:30 am and leaves the office 12:30 pm or 13:00 pm daily.
Please let us know whether he is authorized to get his full salary for these three months, and what the labor law defines for this aspect.

Name withheld
Your friend must only be paid if he works during the notice period, which is considered part of the service. The termination letter clearly says that he is being given a three-month notice on that date — 06-01-2013. It doesn’t say he is being terminated with immediate effect or from that date. Not only can he lose his salary for that period, legal action can be taken against him — like being fined for arriving late or leaving early. If his action results in any loss for the company, your friend can also be taken to court.
During the notice period, if a person is terminated, he has to work the full office hours to earn his salary or face legal action.
The only thing a person who is terminated is authorized to legally get is one day off per week to find a new job.

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