BCC 116/2008

This case involved the correct method to calculate the end of service gratuity of an employee.

Background

An employee filed a case against a company before the court requesting the company pay his wages for the period from May 1997 to August 1998 in addition to other entitlements.

The court dismissed the case.

The employee appealed the ruling before the court of appeal. The court dismissed the appealed ruling and ruled the company should pay the employee 287.630 Dinars for end of service gratuity and 60 Dinars for holiday pay in addition to a travel ticket.

Decision

The employee appealed the ruling before the court of cassation and said in his grounds of appeal that the ruling had violated the law and that the court had calculated the end of service gratuity as 287.630 Dinars though he deserved 332 Dinars as his monthly wage was 60 Dinars.

The court said that this argument was valid because Article 111 of the Labour Law stipulated that the value of the end of service gratuity should be calculated based on 15 days wages for the first three years of service period plus monthly wage for the subsequent years.