Indemnity, Leave balance payment & Time period taken to transfer visa to another company

April 30, 201612 Comments

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.

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Comments (12)

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  2. Hello, first I want to acknowledge your support in this issue of indemnity and leave calculations. Secondly. I would like to request if you can provide us with a universal formular of calculating indemnity benefits.

  3. Sir good evening , i hope reply on my question,
    Im start to on my company on Nov 27 1996 till now .
    So file my cancelation, and we aggree , so my salary is 240. Im living on AGUST 3 2016 . Sir can i know how much cumputation i can get. Thank you Sir

  4. Jc De Vera says:

    i was joined in a company dec 2011 up to march 26,2016. I've been joined 4 years and 3months and my basic salary is 200 kuwait dinar.pls kindly show me the real computation if how much i will get thank you.

  5. hello i work for 2years 8months in my company before, i want to know if there is a possibility to give my leave pay?because till now im waiting is almost 1year

  6. only 60 days leave balance allowed..

  7. Mg Madz says:

    Sir can i ask how can get release paper becouse my work goverment project im almost 3years en 4mths i want to get release i want to work another company .my company know is boddai

  8. my company doesn't follow the rules of kuwait there are so many staff suffering for their indemnity and last salary lot staff have puten case in the court but nothing happend yet and with some people they are just playing by saying next month we give because of this problem some people woking for 20 years and they are helpless

  9. How about in 3years here work, how to compute my indemnity? ' i have a 30 leave balance

  10. Sir can i ask about my case iwas terminated by the company and i work for 4.96 of service how much will i get

  11. Dear sir I came hear last year 22nd March due to some problems I resign my job, 2 year contract I signed so I resign now they will pay any indemnity my last duty was 3rd june

  12. Does the ministry increased the changes to transfer the residence to another company? I heard it is KD.300 now.

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