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Company trying to cheat on Indemnity

I joined my current company on April 4, 2000. At that time the company had several projects so company got my residence done on one of their projects. After five years — in June 2005 — my company transferred my residence to the sponsorship of the company.

When I asked company about my indemnity, the company said that they will calculate my indemnity from June 2005, since that was the date my residence was transferred to the company. I have argued with them, that I had been working for them since April 4, 2000, and because of their own convenience they had got my residence for a sister company… so my indemnity must be calculated from 2000.

Actually I had been working with them since April 4, 2000. The company also said that in the calculation of indemnity they will calculate only working days… Fridays and public holidays will be not counted.

Kindly advise me how much is my indemnity as my current salary is KD 300 and my last working day is Aug 31, 2016.

Name withheld
Answer: First of all, there is no doubt about the fact that your company is trying to cheat you out of a portion of your indemnity because it must be calculated from the day you started working for them and not from the day the company started to sponsor you.

As the salaries of all workers are sent to the bank, you have enough proof of the length of your service with this company and you can take your case to the Labor Office and even the court if the company refuses to give you your full dues.

On the same note we would like to mention that all holidays, weekends and official holidays, are to be counted in the service.

Even your annual leave is part of the service. The only days that can be deducted from your service is the unpaid leave if you have taken any.

If the company does not back down over the above two issues file a complaint against your firm with the Labor Office in your area …and if the Labor Office, for any reason, does not decide the issue in your favor take the company to court.

Your indemnity will be calculated as follows:

Service start date – April 4, 2000

Last working day – August 31, 2016

Total service – 16 years, 4 months (approximately)

So, you will get 15 days for each of the first 5 years = 75 days

But these 75 days have to be divided by 26 (working days in a month) = 2.88 months salary

You will also get one months salary for each year of service after the first five years = 11.33 months salary

Total = 14.21 months

salary = 14.21 x KD 300 = KD 4,263

And as you have served over 10 years with the company you are entitled to your full indemnity.

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