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End of service benefits

I have been working in a company since July 2, 2012 but the employment agreement was signed a few months later, on Sept 12, 2012. I have now received a verbal notice that my company will terminate the unlimited employment contract that I had signed, which means they no longer require my services . Please help me know about all my end of service benefits on the termination of contract of my employer? And on what will I base the total duration of stay in the company — is it the actual date I started working for the company or is it the date on which I signed the agreement? I believe there is a 3-month notification period and I am exempted from work for this duration but the company has still to pay me 3 months remuneration even if I don’t work, according to Article 44 of the Kuwait Labor Law. Please confirm.

Name withheld
Answer:
You have a number of questions within the single query that you have posed but we will tackle all of them one by one.

First of all you, if the company is terminating you, you will get your full indemnity even though you have served even less than two years. You would not have been entitled to anything if you had resigned because in case of a resignation you need to have served at least three years to be eligible for indemnity.

Secondly, and very importantly , you must remember that you must get a three-month notice from your company and this notice period has to be counted in the service period. You, however, have to work during the notice period and earn your salary for those three months but in case the company so desires it can relieve you of your duties and not make you work. It is not your choice, it depends on the company. On the other hand, even if the company decides not to make you work it still has to pay you for the notice period.

There is no way out of this situation unless there is a mutual agreement in which you opt to leave the company early and the company links this to non-payment of any salary for the three months. In such a case you can be relieved without any payment. Your service will be counted from the day you started working for the company and not the later date on which the agreement was signed.

And lastly, the company is obliged to give you — if your services are terminated — one day or eight hours a week to look for a job.You have to inform the company of your absence in advance or this can be done through mutual agreement. Besides your indemnity, the only thing that you should get is payment for any accumulated annual leave.

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