I’ve got a friend who works at the Commercial Bank of Kuwait and according to him CBK terminated the contracts of all their employees. Supposedly they are now going to have to sign new contracts but no one knows yet what to expect. No bonuses? Salary Cuts? No one has been told what the new contracts will state…
Update: Buzberry just posted a letter from a CBK employee which you can read [Here]
24 replies on “CBK Terminated All Employee Contracts”
Good grief- that’s quite astonishing isn’t it? Is it to do with the world ‘credit crunch’?
Waiting for their 1st quarter profit for 2009
Dude, you’re using their old logo.
i know, this is the logo I like 🙂
https://248am.com/mark/kuwait/commercial-bank-of-kuwait-logo/
I was surfing the blog’s and found more details on
https://www.buzberry.com/?p=4732
Terminating staff during a crisis I believe, only makes things worse.. People lose jobs, consumer confidence falls, economy goes from bad to worse.
Mark,
Whats the smiley at the end of your comment page for?
Not illegal at all. The company / bank reserves the right to terminate any of its employees’ existing contracts and issue new ones with edited / added legal verbage. I’d look for a golden handshake and settle amicably.
Look on the bright side; there are banks, investment firms and credit rating agencies still hiring voraciously. Gulf Bank is re-structuring and hardcore poaching is on~!
Welcome to the New Kuwait.
Actually, under Article 54 of Kuwait Labour Law, if your employer terminates your employment you are entitled to terminal service indemnity of:
1) ten days wages for each of the first five years of employment and 15 days wages for each year after that (or pro rata’d as appropriate)for workers paid daily/weekly/hourly/per piece.
2)15 days wages for each of the first five years of employment and one month wages for each year after that (or pro rata’d as appropriate)for workers paid monthly.
You do not lose the right to such indemnity unless your employment is terminated for one of the reasons set out in article 55, which include:
a) comitting a falt causing serious loss to employer
b) repeatedly disobeying employers instructions (except where health and safetuy is concerned) – and after employer has followed company policy of disciplinary action
c)absent from work for seven days with no legal reason
d)convicted of a crime concerning honesty, honour or morality
e)commits an act against public morality in place of work
f)assaults a fellow worker during or because of work- and after employer has followed company policy of disciplinary action
g) breaches his employemnt contract or Kuwait Labour Law
h)it is proved s/he used fraud to obtain employment
i)reveals trade secrets
NBK terminated 20 of her non-Kuwaiti employees with couples of month advance salary.
I didn’t know NBK was female.
If she is I don’t like her. She is scandalous.
Maybe CBK trying to fire some Kuwaitis lol, renew everyones contract except the bad Kuwaitis ? :p
A very sad state of affairs!! They r losing their indemnity which isn’t legal, and CBK will be losing their workforce!
I guess this news is partly true. Since i had a couple of friends and spoke to him and they told me that they are getting the salary in advance and they will be having new contracts with less bonus or no bonus depands on the grade of the employee. But no salary cut so far.
hope for the best .
Thats stupid and makes no sense. If workers refuse to sign the new contracts the Bank will be forced to pay millions as the bank will have to pay each employer under Kuwaiti employment laws.
Isn’t it CBK planning to become Islamic?
Apple.pie ,,,, that is BKME & not CBK
I got a friend working at CBK, he’d told me CBK’s been in trouble for a long time right after the investment houses started going down.
looooooool @q8shadow
does this mean they are in the red…time to stop dealing with them and pull out all your cash??
Hey mark I would just like to clarify some points on the issue. Here is a link to a post on c&n which i wrote:
https://chartsandnumbers.com/2009/04/13/cbk-offers-employees-no-promises/
thanks
Hi,
i know some people who work for CBK and the staff was actually promised new contracts with nothing changed except for the fact that termination of this contract releases the indemnities pressure on CBK since they paid all the employees their indemnities and now a new resets that issue. so when they finally decide to fire them .. they wont have to pay as much (adding all the previous indemnities with the 5 year and the 15 year thing as Emily mentioned above)
some of the staff is pretty happy about getting all that money in their hand.. well at least the person who told me was. 😛