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Sunday , January 24 2021

Management says ‘shops and establishment category are not entitled for Indemnity’

I worked in a company mainly dealing with imported foods from world over from June 2007 to April 2015 before I resigned from this firm. The company transferred a fixed amount as salary through the bank and paid the difference in the salary and allowances in cash during my tenure with them. I don’t have a work contract. But the company renewed the residence over all the years. I have now transferred my residence to another company. But still I have not received my settlement from the previous company. I came to know that the management will not give the indemnity because the company is under “shops and establishment category”. So there is no need to give the indemnity (management’s words). So please let me know whether I am eligible for any indemnity for the service as per the Kuwait labor law. Also let me know whether there is any law that if a company is under the “shops and establishment” category, there is no need to give the indemnity.

Name withheld

Answer: The company is lying and trying to get away from its obligations by not paying you any indemnity. All of the private sector, regardless of any category, is covered by the Kuwait Labor law which was enacted in February 2010 and as such must ensure that the indemnity mentioned for various stages of employment must be paid to the employees. If your previous company continues to insist on not paying you your indemnity, you must file a case with the Ministry of Social Affairs and Labor through the Labor Office in your area.

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