Monday , December 18 2017

5 years service – Indemnity calculation ( 11 months leave taken in 5 years)

I have been working in an engineering & construction company as a supervisor in Kuwait since July 15, 2011. My salary is 300+27 KD.

Now I want to resign from my service after 15 July, 2016,after completion of five years with the firm. Can I get 5 years benefit? During five years service I have been in vacation for 11 months.

How are the five years calculated by the existing Kuwait Labor Law.

Will the company shall deduct my vacation period which I availed during service from the period that I have served with the firm?

Kindly advise me in this regard.

Name withheld
Answer: No, you can’t get the benefit for five years because over these years you have been on unpaid leave for nearly six months.

Please remember that the company has the right to deduct the period you were on unpaid leave from your service, which means that you have to serve an additional six months to complete five years of service.

And after completing the five years service you will be entitled to 15 days pay for each of these years, which means you should get 75 days but these 75 days must be divided by 26 (working days in a month) = 2.88 months.

These 2.88 months must be multiplied by your total remuneration i.e. your basic salary plus all the allowances that you get regularly (2.88 x 327 = KD 942). But please remember that you will get only two thirds of this amount if you resign after completion of five years service.

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