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Sunday , February 23 2020

Indemnity calculation for less then 5 years – Resigned

I would like to ask about the legal calculation of my indemnity. I have been working for this company for the last three and a half years and I have already resigned. My last day of duty was April 31, 2016 and I joined the company on Dec 12, 2012. I would like to know how much will be my indemnity.

Name withheld
Answer: We can’t calculate your indemnity because you have not mentioned your salary in your question. We will, however, show you how to calculate the indemnity — using any salary as an example — so that you can do the exercise yourself. As you served for over three years but less than five years, you will be entitled to only half the indemnity as you have resigned. Had your services been terminated you would been entitled to the full indemnity.

Calculation
Service = 3.5 years
Salary = KD 100 (hypothetical)
So, you get 15 days pay for each year of service = 3.5 x 15 = 52.5 days
But these 52.5 days must be first divided by 26 (working days in a month) = 52.5 / 26 = 2.019 months pay = 2.019 x KD 100 = KD 201.900

(Please remember that this calculation is based on a hypothetical salary and not actual as the same has
not been supplied to us)

Now if your services had been terminated you would have got the above full amount but as you have
resigned you are allowed only half of the indemnity = KD 201.900 / 2 = KD 100.950

So, using the above method, you can easily work out the indemnity yourself.

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

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