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Saturday , October 19 2019

New company formed, residence transferred to new company – Will Indemnity continue?

I would like to ask about my indemnity. I was working in a company for the last 10 years with the company having same issues. So the owner formed a new company and transferred our residence to the new company and I was told salary and contract remained the same. They told me it is the continuation of the employment. So my question is if I resign or they terminate me, legally (as per Kuwait Labour Law) will the company stop my service money payment.

Name withheld

Answer: The formation of the new company does not absolve it from meeting its obligations that accrued under the old company. The owner rightly told you that your contract and salary remained the same as they were under the old company. This therefore, means that if and when you resign or you are fired you will be entitled to all end of service benefits under the Kuwait Labour Law

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