Tuesday , September 26 2017

Indemnity for terminated staff and utilization of leave during notice period

I need to understand the process of indemnity calculation, I joined the company on Nov 1, 2011. I had been terminated from the company, due to the restructuring and cutting down the cost of administration. Notice was served to me on July 27, 2017 with 3 months notice, therefore my last working day will be Oct 27, 2017. My salary is KD 960 + KD 90 allowance (transfer to bank KD 1,050). Also additional I have fixed bonus of KD 900 annually I also have a balance annual leave of 29 working days.

Now my employer is asking me to utilize the annual leave of 29 days during the 3 months notice period or the annual leave will be waived off. (Kindly explain) I need to understand the process of indemnity calculation in my case. I am currently serving the notice period of 3 months.

Also my company is asking me to do the job for 8 hours daily, even though I understand that it is required to work only 6 hours daily, and all pending jobs should be completed by me instead of handing over to other replacement staff. (Kindly explain) Can you please guide me, how my end of service will be calculated?

Name withheld

Answer: According to Kuwait Labour Law indemnity must be calculated using the latest remuneration which is made up of the basic salary plus all allowances given at regular intervals. The latest bonus is also included in the remuneration.

This is added to the monthly salary by dividing it by twelve (number of months in a year) Your indemnity will therefore be calculated on a total salary of KD 960 + KD 90 + KD 75 (KD 900 bonus divided by 12) = KD 1,125.

This figure will therefore be used to calculate the indemnity as follows service period: 6 years; Salary: KD 1,125.

For the first 5 years service you get 15 days pay for each year = 75 days. But these 75 days have to be divided by 26 (working days in a month) = 2.88 months salary. For the remaining one year service you get one month salary.

Total = 2.88 + 1 = 3.88 months salary = 3.88 X KD 1,125 = KD 4,365. Since your services have been terminated you are entitled to the whole above amount.

If your employer is asking you to utilize your pending 29 days of leave out of 3-month notice period, he would not be violating the law in so far as the whole 3 months are calculated as part of your service period.

The 8-hour daily work is permitted by the Labour but the six hours you made mention of is at the discretion of the employer. The pending jobs you are supposed to do should be executed within the 8-hour work shift. It it goes beyond that you will be entitled to ask for overtime.

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