KCC 326/2007/1

This case involved the method for calculating severance pay for an employee. The key point was that severance pay was payment under the contract of employment regardless of which party dismissed the employment contract.

Background

An employee filed a case against a company and requested the court to order the company to pay his dues and severance pay.

The court ruled that the company should pay the employee 13450.632 Dinars.

The company appealed the ruling before the court of appeal. The court changed the appealed ruling and ruled the company should pay the employee 9490.632 Dinars.

Decision

The employee appealed the ruling before the court of cassation and stated in his grounds of appeal that the ruling had erred in the application of law because the court had calculated the severance pay based on the value of half a month's salary for the first five years of his service.

The court stated this argument was valid because the employment contract stipulated that the employer was obliged to pay severance pay to the employee if the contract was dismissed by either party.

The court repealed the ruling.