Notice Period, Termination Indemnity And Transfers
Today I will be answering questions regarding the major concerns that I am receiving. I have discussed notice periods, termination indemnity and transfers on multiple occasions before and in more detail, but I still receive a lot of questions. So bear with me while I answer them.
But before I do so, before I lay out the law in front of you, I want to make one thing clear. No matter how many times I speak about these issues, you need to talk about them. You need to confront those that are not treating you right. I can always provide you with legal assistance and advice. The law is logical, it has no space for mistreatments. So I urge you to talk up to those that are mistreating you at the work field, peacefully of course.
Notice period
Question: I have been working for a travel agency for two years, and now I want to leave. How many days’ notice period do I have to give?
Fajer: The answer to your question depends on a few factors. I can see that you work for a private company, so Kuwait’s Labor Law number 6 for 2010 is applicable to your situation. With that said, the law differentiates between two different work contracts; definite and indefinite term.
For definite term, you can leave once your contract is over (make sure it is not automatically renewable).
As for indefinite term, if your contract does not state otherwise, the notice period is three months. I should also make clear that your notice should be in writing, either via email or on paper (no texts or whatsapp)!
Termination indemnity
Question: is there an easy way of calculating my termination indemnity? Can you please explain how I can calculate it?
Fajer: First of all, I would like to make it clear that it is not a lawyer’s job to do the actual calculations. Even through the legal procedures, lawyers will not usually calculate. Instead, experts are called in to calculate the final amount (they are usually accountants).
With that said, the principle of the calculations is not that hard to master and I suggest that you calculate so you have a rough idea of your termination indemnity amount.
This will depend on whether you have been terminated or you have terminated the contract.
In the event where you are terminated:
* Less than 5 years of employment = 15 days’ pay of your salary.
* Between 5 to 10 years of employment = 30 days’ pay of your salary.
The total amount should not exceed an amount that is more than one year and a half of salary.
In the event where you have terminated your contract and it is an indefinite term contract:
* 3-5 years of employment – half of the indemnity mentioned above.
* 5-10 years of – two thirds of the indemnity mentioned above.
* 10 plus years – you will be entitled to your entire indemnity.
Let me give an example. You ended your indefinite contract (with a three month notice period) and your salary is KD 450 a month. You have been working for seven years with this company. How much is your termination indemnity? I have answered this question by breaking it down to simple steps, as follows:
1- Break down your salary into daily pay. You have 26 working days per month. Therefore, you should divide 450 by 26. That will average to KD 17.310
2- Calculate your termination indemnity as if you were being terminated. That is 15 days’ pay for the first 5 years and one month pay for the remaining 2 years . 15 x KD 17.310 x 5 = KD 1,298.10
30 x KD 17.310 x 2 = KD 1,038.6
Total = KD 2336.7
3- Calculate your termination indemnity according to the fact that you have terminated the contract. For 7 years, that is 2/3 of the total above.
Work transfer
Question: I have been hearing in the news and from word of mouth that you cannot transfer anymore from one employer to another, and that the government is being strict because they do not want expats to live in Kuwait anymore. Is this true?
Fajer: Well, it is true that the procedures and requirements for a work transfer are becoming more and more strict, but it is not just for expatriates, it is for nationals as well. I had to do a lot of paper work a few months ago at the Ministry of Social Affairs and Labor.
Now that does not mean that you cannot transfer according to the law. Only those coming in as government contractors or for work at the Free Trade Zone will have difficulty transferring. They will need signatures from both employers and the papers will need to be submitted in their own certain area at the Ministry of Social Affairs and Labor. Also, transfers will be difficult for those who have worked for less than a year in Kuwait.
For any legal questions or queries, email ask@fajerthelawyer.com.
By Attorney Fajer Ahmed
SOURCE : IFLKUWAIT
I joined a multinational company in Kuwait as sales executive in September 2017. They terminated my contract in May 2018 and my last working day with them was in August after I served the 3 months notice period. Total time with the company is 10 months and 15 days. I have not taken any annual leave during my time with the company and as such, I have 20 days annual leave pending. Could you please advise if I am eligible for 15 days indemnity, and if I can encash my annual leaves, as my contract was terminated by the company.
Name withheld
Answer: Yes, since you have been forced by the company you are entitled to 15 days salary as indemnity. You can also encash the pending 20 days annual leave.
SOURCE : ARABTIMES
No Indemnity For Service Below 3 Yrs
If I resign from my company by end of this month (30/04/2018) with 3 month notice period. There is one day weekly off (without Friday) or daily 1 hour leave from working hour is applicable or not. Same thing if they are terminating me, there is one day weekly off (without Friday) or daily 1 hour leave from working hour is applicable or not. Please advise my joining data August 2015, how can I get indemnity.
Name withheld
Answer: When you tender in your resignation the understanding is that either you are leaving to take up a new job in another company or leaving Kuwait for good.
The issue of one day off in a week or one hour off daily does not arise. On the other hand, if you are fired you need to be given adequate time to look for another job hence the institution of the one day 1 one hour rule.
Your 3-month notice period will end on July 30, 2018. By that date you will have put in 2 years 11 months of service.
This falls one month short of the 3 years you need to put in the be entitled to an indemnity. In short you have nothing to collect from your company since you are resigning and not being fired.
SOURCE : ARABTIMES
Bonus Calculation In Indemnity
Our company includes bonus while calculating indemnity for employees in compliance with Kuwait Labour Law. The bonus amount varies each year.
My question is if an employee has been paid bonus for the past 10 years and during the 11th year if he was not paid any bonus, and if the employee leaves the company after completing 11 years, how is his indemnity to be calculated? Does include the bonus component or is it excluded? If included, what amount is to be taken into consideration since the last bonus was ‘0’?
;
Name withheld
Answer: If the employee leaves the company after the 11th year in which no bonus was paid, his indemnity would be paid taking into consideration the 10th year in which bonus was paid. In this case, you divide the latest bonus paid by 12 (number of months in a year) and add it to your monthly salary for the purpose of calculating the indemnity.
SOURCE : ARABTIMES
Indemnity Issue With Kuwait University
It would benefit everyone in Kuwait to know that Kuwait University does not pay indemnity after end of service to foreigners. They don’t have the budget for it and anyone thinking of working there should avoid this trap.
Name withheld
Answer: Our checks have shown that it cannot be entirely true to say that Kuwait University does not pay indemnity to its workers after end of service.
While some categories of workers at the university may not enjoy this facility, it is erroneous to categorically state that all Kuwait University employees at the end of service are not paid indemnity.
Indeed all employees who do not enjoy this facility like some research assistants are made aware of this fact before they are recruited.
The argument then is that if you accept this prior condition before recruitment, you should have no reason to complain of being led into a trap
SOURCE : ARABTIMES
Indemnity Not Paid Even After 10 Months After Resigning – What To Do
I worked in a company from June 2005 to July 2016, but even after 10 months after my resignation, I have not received the settlement for the 11 years of my service with the company and my 1-1/2 months salary is also pending with them.
Please advise as it is very painful that I did not receive my hard earned money even after working sincerely in KOC/KNPC projects with the company. Some of the employees, who resigned after me, got their settlement through somebody’s recommendations according to the information received through some source. Kindly advise me how I can get my settlement without any further delay. Awaiting your valuable advise please.
Name withheld
Answer: You are entitled to the end of service settlement in addition to the unpaid one and half month’s salary by virtue of Kuwait Labour Law. The company is violating the law by withholding what is due you in terms of indemnity and unpaid salary. In this situation, you have no alternative than to file a complaint with the Ministry of Social Affairs and Labour through the Labour Department in your area to seek redress. If this action fails, you have another chance to take your case to a court of competent jurisdiction to seek justice. You may need the services of a lawyer to help you prosecute your case even though it will come at a monetary loss.
SOURCE : ARABTIMES
Indemnity Kuwait Indemnity Calculation In Kuwait, Question and Answers