Monetary issues
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I am a regular reader of the Arab Times Legal Clinic and want to thank the paper for the valuable clarifications. I have the following two questions:
1. We are working for a security company. As per our contract, we have to perform 48 hours duty in a week (208 hours duty monthly for the basic salary and the remaining extra hours on over time). The company is, however, stretching these hours to 216 when there are at least three working days in the last week of the month — like in March 2015. If anyone rejoins the company late from leave, the company forfeits a basic salary amount equal to the pay for those days in spite of the workers hourly working contract. You are requested to clarify this issue, whether such an action is given cover or otherwise by the Kuwait Labor Law.
2. We joined this company on July 18, 2004 on a basic salary of KD 50 plus a KD10 allowance. In July 2010 this was raised to a KD60 salary and a KD5 allowance. One of my friends has submitted his resignation so can you calculate his indemnity.
Name withheld
Answer: First of we would like to point out there are 26 working days in month but these are then stretched to 27 in months which have 31 days (except those which have 5 Fridays). So, the normal working hours in a month should be 192 for the 26 days or 200 for the 27 days, nothing more. This is the law. If a contract has anything which contradicts the Kuwait Labor Law, it is not valid.
On the issue of late arrivals, the company can fine you a certain amount if it has such a policy on the issue and this policy is implemented across the board.
On the issue of your friend’s indemnity, he should get 11 years indemnity calculated on the basis of the latest salary (ie KD 60 plus KD 5 = KD 65) regardless of when this salary was increased.
All allowances received regularly must be used in all financial calculations, for example in the calculation of the annual leave payment and also the indemnity. So, your friend’s indemnity will be calculated as follows: 15 days remuneration for each of the first five years = 75 days But these 75 days must be divided by 26 (working days in a month) = 2.88 months salary One month’s remuneration for each of the remaining 6 years = 6 months pay Total indemnity = 8.88 months remuneration = 8.88 x KD 65 = KD 577.200 As your friend has served over 10 years he will get the full above amount and nothing can be deducted
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