Management wants to pay indemnity in installments

I am working for a private firm for the last eighteen years. On my request the management decided to pay my indemnity every six months, till it clears all till 2011.

I have already received KD 500 as my first payment.

When I asked the accounts clerk what balance was left, he was not able to brief me properly.

Secondly he told he is deducting a 6-month period from my indemnity because I took a total vacation of approximately like 6 months. I am confused. Kindly calculate my total indemnity according to the following details.

Joining date May 2, 1994 till June 20, 2011.

Last salary KD 280.

Name withheld
Answer:
First of all, the firm can’t deduct 6 months from your service if this is the authorised annual leave you availed. But it can do so if this was unpaid leave.

Secondly on the question of indemnity you are entitled to 17 years indemnity and with your last pay being KD 280 the calculation will be as follows:

1. 15 days per year for each of the first five years = 75 days. This has to be divided by 26 = 2.88 months salary.
2. One month’s salary for each of the 12 years = 12 months salary.
3. Total indemnity will be for 14.88 months.
4. Total amount = 14.88 x 280 = KD 4,166.400.
And as you have worked over 10 years you should get this full indemnity.

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