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Slew of loopholes in new private sector labor law? |
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Thursday, 18 March 2010 09:47 |
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KUWAIT: The new labor law is nothing but a government document that is punctured by a slew of loopholes.
A senior Kuwaiti journalist who requested anonymity said that many employers will devise their own schemes to avoid paying indemnities and other forms of remuneration payable to workers. "Well this is the new law we should follow. But I am not very convinced with what is written there. As an employer myself, (owning a recruitment agency) I can still do many things to avoid answering questions from the ministry," he asserted. "I can transfer him/her to another section or division in the company so that I can avoid paying benefits, or worse, I can fire them and look for new workers. There are many other miracles that I can perform as an employer," he said.
The new law was amended to fix some loopholes that existed previously and serve as a clear guideline to prosecute violators. Ahmed (not his real name) worked for over ten years in a publishing company in Shuwaikh. In late 2008, he was told that the company he worked for would be sold to another, and they promised to pay full end-of-service benefits. Since he did not want to continue working with the new management, he resigned. But after several months, the promised indemnity was never paid. His case is now being heard by the labor arbiter at the Ministry of Social Affairs and Labor. "Until now I don't see hope, perhaps this new law will help me anyway. I will see how it works and is applied to my case," he said.
Under the new law, Ahmed's rights can be secured from the new management since the obligations and rights of the original employer towards workers have been transferred to the new employer who has acquired the company.
Under Chapter Three, Section Three, Article 50 states: "In the event where the establishment is sold or is merged with another establishment, the work contract shall remain valid as obligations and rights will automatically be transferred to its new owner and for workers who are paid monthly, the worker shall be entitled to a 15 days remuneration for each of the first five years of service and one month remuneration for every year thereafter. The total of the end-of-service benefit should not exceed one and half year of remuneration.
Erlinda (not her real name) is another victim who was denied indemnity claim. She worked for five years in a restaurant at the Gulf Street. When she found a better job that offered a better salary, she eventually asked for a transfer of residence permit. She did not receive it easily though but the company's management finally relented when she stated in her written resignation that she would not claim her end-of-service benefits.
The new law states: "If a worker was terminated or terminate her contract her/himself, the worker is yet entitled to half of the end of service benefits stipulated in Article 51 in the event where he terminates the work contract which has an indefinite term and the period of service reaches not less than three years and not more than five years. In the event where the period of service reaches five years and less than 10 years, the worker shall be entitled to two thirds of the benefit, and if the period of service exceeds 10 years, the worker shall be entitled to his entire benefit. - Kuwait Times
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