Indemnity Name withheld

Good day ... I am a regular reader of your legal column ... this time I need your help for the correct calculation of my indemnity ... I joined my company on 1st August 2002 and was given 3 months notice which expired on March 15, 2017. My contract is unspecified ... job is petroleum inspector in KNPC refineries my latest salary is 800 KD food allowance 40 KD and receive annual bonus of 750 KD my nature of work is in the oil industry on contract with Kuwait Petroleum Corporation and our company is involved in oil, gas and chemicals work I am qualified in the oil sector. Pls help me to calculate my indemnity base in the Kuwait Labor law many thanks in advance and more power to your column.

Answer: According to the Labour Law your indemnity will be calculated taking into consideration the latest renumeration which means the basic salary in addition to all allowances you receive on a regular basis. In your case your indemnity should be calculated on KD 840 (basic salary of KD 800 + KD 40 food allowances as follow): 15 days pay for each of the first 5 years =75 days pay but these 75 days have to be first divided by 26 (working days in a month) = 2.88 months pay.

One month pay for every year after the first 5 years =9.5 months pay. Total = 2.88+9.5 =12.38 months salary = 12.38 x KD 840 = KD 10, 399.2. You will therefore get the whole of the above amount regardless of whether you resigned or your services were terminated.

The Arab Times invites questions on all aspects of Kuwaiti law. If you face a problem, or need specific advice on any legal matter, from commercial and investment law to divorce and labour, send questions to the Managing Editor, Arab Times, P.O. Box 2270, 13023 Safat, Kuwait, or Fax to 24818267. E-mail: arabtimes@arabtimesonline.com