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Indemnity issue

I resigned from my job on Oct 1, 2013 but continued working for the company until they found a replacement and trained him for my job. My last working day was Feb 13, 2014. But now the company is saying that because I took 29 days annual leave in 2013 they will deduct 6.5 days as I was eligible for leave only till the day before I resigned. T

hat means for the year of 2013, I should get only 22.5 days leave — even though I worked the full year — and not 30 days as labour law states. Is this correct? Also in addition to my monthly salary, the company used to give me allowance for children’s school fees, fixed medical allowance for family of KD 600 per annum, residence charges for my children, and yearly bonus of one month salary which I used to get once a year since 2003.

All these allowances used to be paid with the salary to my bank account. Now the company wants to calculate my indemnity based only on my monthly take home without the allowances and argue that it is all they need to do as per labor law. I have completed exactly 12 years of service.

Please can you tell me what is the correct indemnity that I should receive.

Name withheld
Answe
r: Your company is wrong on all issues and we will deal with them one by one. Firstly, on the issue of annual leave, this is calculated until the last in service because your service is until the end of the notification period, even if the company exempts you from serving out this period. In this connection, please refer to Article 44d of the Kuwait Labor Law which states that “the employer may exempt the employee from work during the period of notification but shall count such period within the worker’s period of service.

The employer shall pay the worker all his entitlements and remuneration for the period of notification.” So, in this case you should get over 30 days annual leave because such leave is once a year and not after one year – this means 11 months of work and 30 days of leave to complete the year. It doesn’t mean you have to work 12 months before you are entitled to the 30-day leave.

So, the company can’t deduct from your leave and as such from your indemnity over this issue. On the issue of indemnity, the calculation for this purpose should be calculated on a person’s “remuneration” and not on the basic salary according to the Kuwait Labor Law. And if you look at the meaning of “remuneration” according to the Kuwait Labor Law, it will be seen that it includes the basic salary plus all the allowances you receive at regular levels, and also the bonus.

And to include the yearly bonus in the remuneration, it must be divided by 12 and the result must be added to monthly salary. So, the company must base the calculation of your indemnity on your total “remuneration”, which must include all your allowances and also your bonus as we have mentioned above.

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