The end-of-service gratuity is calculated for Kuwaiti workers in the oil sector in accordance with the text of Article (18) of the Labor Law in the Oil Sector No. 28 of 1969, taking into account the employer’s obligation to pay the insurance contributions of Kuwaiti workers to the Public Institution for Social Security, which the employer is obligated according to the text Article (51) of Labor Law No. 6 of 2010 has the right to deduct it from the amounts due for the end-of-service gratuity, and therefore the employer pays the net difference between the amounts incurred by the worker for the worker’s participation in social insurance and the end-of-service gratuity.
Rules Governing How to Calculate End of Service Benefit for Kuwaiti Workers in the Oil Sector
The Kuwaiti legislator stipulated in Article 4 of Law No. 6 of 2010 regarding work in the private sector that the provisions of this law shall apply to the oil sector in cases where there is no provision in the labor law in the oil business sector, or if the text in this law is more beneficial to the worker.
Article No. 18 of Law 28 of 1969 regarding work in the oil business sector, which specified the method of calculating the end-of-service gratuity for Kuwaiti workers in the oil sector, stated that the worker is entitled to a reward for his service period, calculated on the basis of thirty days for each year of service for the first five years of his service. A wage of forty-five days for each of the following years, and the worker is entitled to a reward for the fractions of the year in proportion to what he spent at work, and the last wage is taken as a basis for calculating the reward.
The legislator also required the employer to insure Kuwaiti workers with the Public Institution for Social Insurance and obligated the employer to pay contributions on behalf of the worker.
Article 51 of Labor Law No. 6 of 2010, which stipulates observing the provisions of the Social Security Law, stipulates that the employer pays the Kuwaiti worker the net difference between the amounts incurred by the worker for the worker’s participation in social insurance and the amounts due for the end-of-service gratuity.
This is what was decided by the ruling of the Kuwaiti Court of Cassation No. 645 of 2013 dated 20/5/2014 of the Labor Department in its statement that the end-of-service gratuity for Kuwaiti workers in the oil sector is calculated on the basis indicated in Article 18 of Law No. 28 of 1969, and the employer is obligated according to the provision of Article 51 of Labor Law No. 6 of 2010 to pay the Kuwaiti worker the net difference between the amounts incurred by the worker in consideration of the worker’s participation in social security and the amounts due for the end-of-service gratuity, and if the contested judgment violated this consideration and the effect of the ruling in the aforementioned article did not work and was not deducted from the entitled person Regarding the end-of-service gratuity for the respondent according to the Oil Labor Law, the amounts incurred by the appellant company in return for the respondent’s participation in social insurance, it must be distinguished.
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