I want to ask about an employee who has been working for a company for 4 years before his company terminates him on 31-10- 2015. So, his last working day was 31-01-2016. So can you please tell me whether this employee is also eligible for his vacation salary for the termination period of 3 months — it means for the period 31-10-2015 to 31-01- 2016. I feel that according to the law this works out to be 7.5 days vacation salary, as per the Kuwait Labor Law, which should be calculated and included in the payment of his final settlement.
Answer: Before we answer your question we would like to draw your attention and that of your company to Article 44 (d) of the Kuwait Labor Law enacted on Feb 20, 2010.
This article very clearly says “The employer may exempt the employee from work during the period of notification but shall count such a period in the worker’s period of service. The employer shall pay the worker all his entitlements and remuneration for the period of notification”.
So, it is very clear that you should not only get paid for the 7.5 days annual leave for the notification period but also the indemnity for this period. The indemnity for this period works out to be also 3.75 days pay.
So, the total extra payment you should get for these two entitlements should be added to your final payment.
It should also be very clear that the above days (7.5 and 3.75) should be divided by 26 (working days in a month) and then multiplied by your salary to arrive at the correct figure that you should be paid. Please also remember that you are entitled to your full indemnity because your services were terminated.