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Company paying half indemnity on resigning and half later

My father has been working with a firm in Kuwait for more than 30 years, now he is planning to retire and leave Kuwait, but recently he heard a news that his company is only giving half of the indemnity at the time of resigning and the other half they will pay later.

All these years, he was counting on this money for a retirement life, this news is worrying him a lot. Is it legally valid to give half of indemnity while resigning and other half later? If that person is leaving Kuwait for good, how can he make sure that company is keeping its promise? Can he ask the company not to cancel his visa until they pay him full money? Please advise us.

Name withheld

Answer: Under the Kuwait law all your end of service entitlements must be paid to you before your final exit from Kuwait. This you must attest to, by signing a paper at the Immigration Department, that says that you have indeed received all your settlements from your employers.

Your employers will therefore be breaking the law if they elect to give you half of your indemnity now and settle the other half later. Indeed, a number of companies in Kuwait are guilty of not respecting the law on indemnity payment.

Your father therefore has two choices either to agree and take the partial payment now and leave Kuwait with a power of attorney left with you to collect the other half when it is due. On the other hand, your father can take on the company by filing a complaint with the Ministry of Social Affairs and Labour through the Labour Department in his area which will help him claim his full benefits. It must be noted that while this case is being adjudicated your father’s company will be obliged not to cancel his residence.

Kindly send your queries to arabtimes@arabtimesonline.com or admin@arabtimesonline.com

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