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Those who resign from the company never get the indemnity before the cancellation of their residence

I am a regular reader of this column. I want to clarify some indemnity issues.

I joined a company on Dec 27, 1998 and submitted my resignation on October 1, 2013 and completed my notice period on Dec 31, 2013?

I would like to go back to my homeland for good. I am not asking any local transfer or release. I have completed 15 years in this company?

In our company we have to work on all the public off days with double the wages, but we never get any compensating day off for the day which we worked, which we should get according to the labor law.

Those who resign from the company never get the indemnity before the cancellation of their residence. The calculation of the indemnity is done after the cancellation of the residence. This time I refused to go according to the company’s procedure. I asked the company to first clear my dues such as indemnity and leave salary … and then only I would go to the Ministry of Social Affairs for the cancellation of the residence. then they called me to show the calculation. I do not agree with the company’s calculations.

So I would like to have some clarification on the calculation of the indemnity. My salary details are as follows:

1) my salary on the work permit is KD 350

2) my salary slip mentions the basic salary 250KD+100KD overtime as I have been doing overtime for two fixed hours every day since 2003 till date and still the same is going on.

3) for certain months I received a bigger salary than this due to some public holidays on which I worked

4) this year I also received a bonus (KD 355).

My salary transfer details are below (as per my bank statement).

1) June 2013-350KD +355KD bonus = 705KD;

2) Jul 2013 - 457KD;

3) Aug 2013 - 475KD;

4) Sep 2013 - 310KD;

5) Oct 2013 - 375KD;

6) Nov 2013 - 323KD;

7) Dec 2013 - 317KD.

The company calculated my indemnity and leave salary based on the basic salary 250KD. Is this correct ?

Answer: No the calculation of the indemnity and leave salary can’t be based on the basic salary alone and must include the allowances received at regular intervals or any bonus. But the payment for the overtime can’t be taken into account, even if you received it for years. It is your fault, you should  have got it regularized as part of your salary.

The KD 355 bonus must be included in your salary but only after the figure is divided by 12 (because the bonus is for the whole year) and added to your salary i.e. KD 29.580 plus KD 250 = KD279.580.

So the figure of KD 279.580 must be used for the calculation of your salary and nothing else.

As far as the compensation for not getting an alternate day off for the weekends and public holidays on which you worked, you can make a claim for these but only for those such days after Feb 20, 2010, the day on which the new Labor Law was enacted by the Kuwait National Assembly because this provision was not there in the previous Labor Law. In case your firm does not give you your full dues, you can file a case with the Labor office in your area.

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