Various questions on Indemnity
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I have read the reviews found on your website but I am still confused in indemnity calculation. If the employee is terminated within the following number years in service what would be the calculation? 1 year in service
— what is the calculation and what are other benefits he will get? 2 years in service
— what is the calculation and what are other benefits he will get? 3 years in service — what is the calculation and what are other benefits he will get? 4 years in service
— what is the calculation and what are other benefits he will get? 5 years in service
— what is the calculation and what are other benefits he will get? 5 to 20 years in service
— what is the calculation and what are other benefits he will get? When he reaches retirement age
— what is the calculation and what are other benefits he/ she will get? If the employee will resign within the following number of years in service what would be the calculation? 1 year in service
— what is the calculation and what are other benefits he will get? 2 years in service
— what is the calculation and what are other benefits he will get? 3 years in service
— what is the calculation and what are other benefits he will get? 4 years in service — what is the calculation and what are other benefits he will get? 5 years in service — what is the calculation and what are other benefits he will get? 5 to 20 years in service
— what is the calculation and what are other benefits he will get? When he reaches retirement age
— what is the calculation and what are other benefits he/ she will get? Hoping so much for a detailed answer
Name withheld
Answer: If the employee is terminated within the first five years of his/her employment, he/she will be entitled to 15 days of salary for every year of service.
After five years of service, you will be entitled to a month’s salary for every additional month of service. It must be noted however that the total indemnity that an employee is paid, should not exceed 18 months salary. The employee who is fired but has unused leave days, must have these leave days converted to cash and added as part of the indemnity.
The employee will however be entitled to 15 days of salary for each year of the first five years of service = 75 days but these days must be divided by 26 (working days in a month) = 2.88 months salary which must be multiplied by the amount you receive in a month.
You will however get half of the total amount because you resigned. If you are still in service after five years your indemnity will be calculated on the basis of one month’s pay for each year which must be added to the earlier 15 days salary for each year and the total will be your indemnity but as you have resigned you will get two-thirds of the total if you put in less than ten years of service. You will however get the full indemnity if you put in ten or more years of service. Here too, all unused leave days should be converted to cash and added to your indemnity.
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