Sunday , October 22 2017

Indemnity calculation for Individuals terminated before 3 years of service

Please help out on the calculation of my indemnity. I was terminated by my company on Aug 16, 2016 … my joining date in this company was Dec 17, 2013.

What will be the total indemnity I will receive from my company … more over in my 2nd year with the company I didn’t go on annual leave.

I would like to know also if they will compensate me for the annual leave for my 3rd year of service … or they will make payment only for the 2nd year.

My salary was KD 650 … my basic salary was KD 550 with a KD 100 allowance. Kindly help me out.

Name withheld

Answer: Your indemnity will be calculated as follows:

Total salary: KD 650

Service: 2 years 11 months (as you were terminated on Aug 16 and with the 3-month notice period, your service ends on Nov 16).

The notice period has to be included in the service, whether the company wants it or not, even if there is a mutual agreement on not completing this period.

So you will get 15 days pay for each year of service = 43.75 days

But you have first to divide these days by 26 (working days in a month) and then multiply the result by the monthly salary = 43.75 / 26 = 1.68 months salary = 1.68 x KD 650 = KD 1,092.

As your services have been terminated you are entitled to the above full amount.

As you are entitled to annual leave once a year i.e. 11 months work and 30 paid days leave you are entitled to payment for the balance of your 30 days leave. = 30 / 26 x KD 650 = KD 750

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