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Indemnity, Leave Balance Payment And Time Period Taken To Transfer Visa To Another Company Category: Legal
Kuwaitlocal Kuwaitlocal

I have been working in a company for the last 8 years 9 months (joined Aug 9, 2007) as an engineer but my services were terminated on April 3, 2016.

My salary on my work permit is KD 1,200 and I have 99 days annual leave balance.

My questions are as below :

1. What are my end of service benefits if I am released on April 30, 2016?

2. I have got a job in another company… how many days will it take for me to get a local transfer from the Ministry of Social Affairs and Labor?

Name withheld 
Answer: First of all, we do not understand why you have mentioned the date April 3, 2016 because the company has to give you a three month notice and even if both the parties agree to part ways early, the worker’s service will be counted until the last day of the notice period, which in your case would be July 2, 2016 and as such we will calculate your indemnity until that date.

As such, your service will be 8 years and 11 months and not 8 years and 9 months … so you have to also get the indemnity for these additional two months.

So, here is the calculation for your indemnity: Total service: 8 years 11 months

Salary: KD 1,200

So, you should get 15 days pay for each of the first five years = 75 days pay but these 75 days have to be divided by 26 (working days in a month) = 2.88 months salary

For the remaining period you get one months salary for each year = 3.92 months salary

Total indemnity = 2.88 + 3.92 = 6.8 months salary = 6.8 x KD 1,200 = KD 8,160

As your services were terminated, you are entitled to the full indemnity i.e KD 8,160 regardless of the fact that you have not completed 10 years service.

Second on the issue of annual leave, you say that you have a balance of 99 days but we feel that you should be getting 5 days more in view of the extra two months of the notice that you had not included in your service.

This means your annual leave balance should be 104 days and the amount you should get should be calculated as follows;

Annual leave balance: 104 days

Salary: KD 1,200 The 104 days should first be divided by 26 = 4 months salary = KD 1,200 x 4 = KD 4,800 So, you should be paid KD 4800 in lieu of your balance of leave

Your total dues = KD 8,160 + KD 4,800 = KD 12,960

On the issue of the time that the Ministry of Social Affairs and Labor will take to transfer your residence, we would like to state that this all depends on efficiency of your new company’s mandoub (company representative).

If the mandoub is good, he will only need just over a week (or a maximum of two weeks) to complete the formalities but if he is slow he will take a minimum of one month.

Source - Arab Times

Note - All the answers were provided by Arab Times Legal Clinic.

Report 0 06 May, 2016, 06:55 PM
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06 May, 2016, 06:55 PM
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