Article List
Various questions on Indemnity

I worked in a company on a part-time job and at that time my residence was with another sponsor. After one and half years I joined the same company as a full time employee (without resigning from the part-time job).
Now I have submitted my resignation with a 3-month notice.
My part time service is: from 1-7-1993 till Jan – 1995.
My full time service is: from 31-1-1995 till 31-3-2013.
Note: My company is calculating indemnity for the part time job separately with the part-time salary and for full time they are calculating my current full time job salary.
I told them that you have to calculate from: 1-7-1993 till 31-3-2013 on the last monthly salary but they do not agreed.
Please let me know how they have to calculate as per the labor law.

Name withheld
The company is right. Both the indemnities should be calculated separately.
In this connection please see Article 51 which clearly states how the indemnity should be calculated. Not only should the part-time indemnity be calculated on the part-time salary, the calculation is also different – 10 days remuneration of each of the first five years and 15 days remuneration for each year after that.
Now, as you know, for the permanent employees it is 15 days renumeration for each of the first 5 years and one month’s renumeration for each year after that.
So, that’s the way the calculation must be done.

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I am a regular reader of this column which is very helpful for expatriates living in this country. I would like to know about the calculation of the indemnity. I have been working in a private firm from 2006 April onwards, having completed 6 years and 9 months. Recently I have resigned. I want to know how much will be my indemnity calculation if my salary is KD 157.

Name withheld
If you resign after over 5 years but less than 10 years , then your indemnity will be two-thirds of the total indemnity.
Your indemnity will be calculated as follows:
Salary KD 157
First five years, 15 days for each year = 75 days / 26 working days = 2.88 months salary.
Next 1 year and 9 months
= 1.75 months salary
Total indemnity = 4.63 months salary = KD 726.90
But as you are resigning with over 5 years but less than 10 years service, you will get two-thirds of this amount. = KD 726.900 X 2/3 = KD 484.600

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An employee who is to complete 10 years service (completed period = 9 years and 9 months, as on the date of resigning) resigns with a 3-month notice (3 months included in the 10 years of service), then how is the indemnity calculated. I believe, it is full indemnity. But what is the method of calculation, if the company accepts the resignation and decides to stop the service of the employee from the date of resignation (not the notice period), that is, the employee has a balance of 3 months to complete 10 years.

Name withheld
No, the company can’t do this. In this connection, please see Article 44 (d). This article clearly states that the notice period has to be included in the service so if it doesn’t you can file a complaint with the Labor office in your area.

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Please refer to your reply dated Nov 22, 2012. I submitted my resignation but my company accountant calculated my indemnity in 2 parts i.e.
First part for my part-time job at KD 80 per month.
From July 1, 1993 till Jan 31, 1995.
Second for my full-time job at KD 220 per month.
Jan 31, 1995 till March 31, 2013
I already shown them your calculation but they said that they discussed the issue with experts twice and they said that part-time job will be calculated separately and full-time job will be calculated separately.
I did not resign from part-time job and joined the full-time service. My service was continued.
Is the company right?

Name withheld