Background

An employee filed a case against a company requesting that the court order it to pay severance pay and a grant.

The court ruled that the company pay the employee 10327.63 Dinars as the value of the grant.

The employee and company appealed and the appeal court ruled that the company pay the employee 10731.053 Dinars.

The company appealed by cassation.

Decision

Before the cassation court the company argued that the ruling had erred in the application of law as the calculation of the grant according to the old system included basic salary and a cost of living allowance, however, the court had calculated the grant according to the new system which included basic salary, housing allowance and a cost of living allowance.

The court held that this argument was valid as the case documents revealed that the employee had finished his service during the period of the old system, therefore the calculation of the grant should have been according to the old system.

The court therefore repealed the ruling.