Indemnity
I have one query regarding Indemnity calculation-If the contract is for 2 years & renewed twice hence total period of employment is more than 6yrs. The indemnity will be 1 month salary after completion of 3 years of employment ?? or only 15 days salary as the contract is only for 2 years & renewing for 2 years again & again.
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Answers (1)
Ali
10 سنةs منذ
Hi
If the employee has been renewing the same contract, then the total number of years in service will be 6 years and you need to calculate indemnity in the folllowing way:
15 days salary for each of the first 3 years and one month salary for each of the second 3 years.
Thats a total of 4.5 month salary.
Make sure that the whole calculation needs to be based on the last salary drawn by the employee.
Only if the employees changes the contract every 2 years, received indemnity and starts again with fresh contract with new terms and conditions, then only its is considered 2 years 2 years and the indemnity will not reach the 30 days rule.
Hope answer was neat and clean :)
If the employee has been renewing the same contract, then the total number of years in service will be 6 years and you need to calculate indemnity in the folllowing way:
15 days salary for each of the first 3 years and one month salary for each of the second 3 years.
Thats a total of 4.5 month salary.
Make sure that the whole calculation needs to be based on the last salary drawn by the employee.
Only if the employees changes the contract every 2 years, received indemnity and starts again with fresh contract with new terms and conditions, then only its is considered 2 years 2 years and the indemnity will not reach the 30 days rule.
Hope answer was neat and clean :)
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