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Sunday , October 25 2020

If company does not give the indemnity to an employee, what can the employee do?

I have an inquiry about indemnity amount as I have plans to resign after 12 years service. I have been working in the same company from November 2004.

Now I want to join another firm and I will tender my resignation from my current firm, effective from November 2016. So please advise how much money, as indemnity and annual leave pay, will I get from the company as per the current Kuwait Labor Law.

Please be informed that my current salary is KD 325, and I have 30 days annual leave balance.

If company does not give the indemnity to an employee, what can the employee do?. And which supporting documents need to be presented to the Labor Office against the company so that this office can take the required action against company and ensure the employee gets his indemnity.

Name withheld
Answer: First of all, we will talk about the question of what to do if the company refuses to give or doesn’t give the indemnity to an employee: well the answer is simple — just file a complaint with the Ministry of Social Affairs and Labor or the Public Authority for Manpower, through the Labor Office in your area. The ministry is very strict on this issue these days and will take measures to ensure that you get your indemnity. The company could also face severe legal action, including suspension of its license, until all the dues of the employees are paid.

Now let’s calculate your indemnity.
Service: 12 years
Salary: KD 325
You will get 15 days pay for each of the first 5 years = 75 days pay But these 75 days must be first divided by 26 (working days in a month) = 2.88 months salary
You then get one month’s salary for each year after the first 5 years = 7 months salary
Total indemnity = 9.88 months salary = 9.88 x KD 325 = KD 3,211

Now, as you have over 10 years service you are entitled — according to the Kuwait Labor Law enacted on
Feb 20, 2010 — to the full indemnity regardless of whether you resign or your services are terminated.

Now coming to the calculation of payment for the balance of annual leave.
Balance of leave = 30 days
Salary = KD 325
But these 30 days must first be divided by 26 (working days in a month) = 1.15 months salary
= 1.15 x KD 325 = KD 373.750
Now your total dues will be as follows Indemnity + payment for leave balance = KD 3,211 + KD 373.750
= KD 3,584.750

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