Monday , October 23 2017

18 years service maximum payment of Indemnity

Need your expert legal advice on how to proceed with the following matter. I have been in employment with my current company since 1982. The company, however, says that a total of only 18 years service will be calculated as far as indemnity is concerned. They have not taken into consideration the service from 1980 to 1990 (pre-invasion period) whereby an Amiri decree was made that full indemnity up to the invasion period should be given. Is there any law that the dues up to invasion period be settled separately and then after invasion?

Name withheld
Answer: This is a question which is on the lips of a lot of people, especially those who have worked over 25 years with their current firms i.e. they were here before the invasion of the country.

Immediately after the liberation of Kuwait it was decided by the topmost authorities that the pre-invasion indemnities would be paid in full and calculated separately from the postinvasion indemnities. So, a majority of the firms immediately settled the indemnities of their employees and started anew with the calculation of indemnities for the post invasion period.

This went on for almost 18 years when the Ministry of Social Affairs and Labor – on representation from a lot of big firms — decided that the calculation of both the pre and postinvasion periods could be combined.

This action has never been challenged in any court of law. So, as the current situation stands the calculation of indemnities for both the periods is combined and an employee is entitled to a maximum of 18 months salaries. Please remember, however, that these 18 months salaries doesn’t include any other dues — like payment for any balance of annual leave

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