KCC 907/2004

This case involved severance pay owed to an employee. This has been wrongly calculated with a risk allowance included. Severance pay should have been calculated based on basic salary only.

Background

An employee filed a case against the defendants and requested the court to appoint an expert to determine the dues the defendants owed him.

The court ruled that the first defendant should pay the employee 3948.350 Dinars.

The defendants appealed the ruling before the court of appeal. The court upheld the appealed ruling.

Decision

The defendants appealed the ruling before the court of cassation and stated in their grounds of appeal that the ruling had erred in the application of law because the court had added a risk allowance to the salary on which the severance pay was calculated although this allowance was not part of the basic salary.

The court stated this argument was valid because Articles 1 of Kuwait Law No. 61/1971 stipulated that the salary on which severance pay is calculated is the basic salary and that does not include a risk allowance.

The court repealed the ruling.