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Employers should be aware of Qatari labor laws


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    After normalising regional diplomatic relations and hosting the FIFA World Cup, Qatar has been in the world spotlight and is an increasingly attractive location for employers.

    Many international businesses have been looking to either establish a new presence or increase an existing one in Qatar. One of the reasons for this has been substantial changes made to employment laws in recent years.

    As with other jurisdictions within the Middle East, such as the UAE, Qatar has both ‘onshore’ and free-zone ‘sub-jurisdictions’. The most prominent free-zone in Qatar is the Qatar Financial Centre (QFC). Each jurisdiction has its own, independent employment laws. The ‘onshore’ jurisdiction is governed by Qatar Labour Law No.14 of 2004 (Qatar Labour Law) and the QFC through the QFC Employment Regulations of 2019 (QFC Employment Regulations). 

     Topic

     Qatar Labour Law

     QFC Employment Regulations

    Employment contract

    All employees must be provided with a written employment contract. This contract must take the standard form template provided by Ministry of Administrative Development, Labour and Social Affairs (MADLSA).

    Employers commonly ask employees to enter into a supplemental contract containing additional terms. Three copies of supplemental agreements must be entered into – one copy for employee, one for company and one to be registered with MADLSA. 

    All employees must be provided with a written employment contract that contains at least a minimum set of terms including the employee’s pay, length of contract, place of work, hours or work and annual leave.

    A standard form contract is not required. A company’s internal contract can be used for these purposes. 

    Probationary period

    Probationary periods are permitted, with a maximum period of six months.

    During the probation period, a one month notice period is required from the employer to dismiss the employee.

    If the employee resigns during the probation period, they are required to provide one month notice if they are leaving to join another employer in Qatar. If the employee plans to leave Qatar, a two month notice period is applicable.

    Probationary periods are permitted, with a maximum period of six months.

    During the probation period, a two weeks’ notice period is required from the employer to dismiss the employee.

    Remuneration

    A statutory minimum wage is applicable to private sector workers. There is also a minimum applicable wage for employers to be able to sponsor dependents.

    Employers often provide certain allowances in addition to basic wages.

    Wages must be paid through the ‘Wage Protection System’ (WPS) in Qatari currency (QAR) into a Qatari-registered bank within seven days of their due date. Failure to make payments through the WPS system on time gives rise to liability of a fine between QAR 2,000 ($545) and QAR 10,000 ($2,726) and potential other consequences, such as a withdrawal of the right to obtain work permits.

    Employers must keep a record of all remuneration paid to employees. 

    Employers often provide additional allowances in addition to basic wages. However, the importance and benefits of doing so are more limited given the position regarding payment of end of service gratuity.

    There is no obligation for wages to be paid through the WPS in the QFC. 

    Deductions from pay

    Employers are not permitted to make deductions from pay except for the following reasons:

    • If required by a court ruling, capped at 35% of employee remuneration.

    • For repayment of a loan made to the employee, capped at 10% of the employee’s remuneration. The employer may not charge any interest to the employee.

    • As a penalty for a disciplinary offence, capped at five days remuneration for a single offence or five days remuneration per month.

    • If the employee has caused, through their own fault, loss, damage or destruction to the employer’s property, capped at seven days remuneration per month and only after an investigation has been undertaken.

    • Pension/social security contributions for Qatari nationals.

    No more than 50% of an employee’s remuneration can be deducted in any one month.

    Qatar does not currently have in place any personal income tax. 

    Employers are not permitted to make deductions from pay except for the following reasons:

    • The deduction or payment is required or authorised by law or regulation or the employee’s contract of employment;

    • The employee has previously agreed in writing to the deduction or payment;

    • The deduction or payment is a reimbursement for an overpayment of wages or expenses; or

    The deduction or payment has been ordered by the QFC Employment Standards Office, the Civil and Commercial Court or the Regulatory Tribunal.

    Working hours

    Maximum working hours of 48 per week or eight hours per day.

    During Ramadan, working hours are reduced to 36 hours per week or six hours per day.

    Employees are entitled to at least one day off per week, normally being Friday. Employees must not work on more than two successive Fridays.

    Employees must not work more than five consecutive hours without at least one hour break. 

    Maximum working hours of 48 per week. This stipulation does not apply to employees who hold managerial or supervisory positions.

    During Ramadan, working hours are reduced to six hours per day for employees that are fasting.

    An employee who works at least six hours per day is entitled to one or more intervals for prayers, meals and rest of at least one hour in total.

    Employees are entitled to at least one day off per week.

    Overtime

    Overtime may be worked in excess of normal working hours, but total working hours per day must not exceed 10 hours.

    Overtime must be paid at 125% of normal pay for overtime carried out during the day or on a public holiday, or 150% of normal pay for work carried out between 9pm and 3am or on a Friday, unless employees are provided with a day off in lieu instead.

    Working hours/overtime rules do not apply to senior or managerial employees – those acting with the authority of the employer. 

    Overtime may be worked in excess of normal working hours. but total working hours per day must not exceed 10 hours.

    Overtime must be paid at the employee’s standard remuneration or as agreed with the employer.

    Overtime does not need to be paid to employees who hold managerial or supervisory positions. 

    Annual leave

    Employees with between one year and five years’ consecutive service are entitled to three weeks annual leave. Employees with over five years’ service are entitled to four weeks annual leave.

    Up to 50% of the employee’s annual leave entitlement may be carried over to the following year if requested by the employee.

    Employees are entitled to public holidays – 11 days per year – that fall on a work day. 

    Employees with over three months’ service are entitled to a minimum of 20 working days per year.

    Employees are entitled to public holidays that fall on a workday. 

    Sick leave

    After three months’ service, employees are entitled to the following period of sick leave/pay per year:

    • Two weeks – 100% pay;

    • Further four weeks – 50% pay;

    • After six weeks’ paid sick leave, employees are entitled to unpaid sick leave up to a maximum of 12 weeks. After 12 weeks of absence has elapsed, the employer is entitled to dismiss the employee without notice.

    Sick pay is dependent on the employee providing a medical certificate to the employer. 

    Employees are entitled to 60 working days’ sick leave per year, to be paid at the employee’s standard remuneration. 

    Maternity leave

    Employees with at least one year of continuous service are entitled to 50 days’ maternity leave at full pay.

    At least 35 days of the leave must be taken after the birth.

    If the employee suffers from a pregnancy-related health issue, they are entitled to take up to a further 60 days’ unpaid leave.

    Employees are entitled to daily nursing break(s) of up to one hour for a period of one year from the birth of the child. 

    Employees with at least one year of continuous service are entitled to 14 weeks’ maternity leave. This period of leave must be paid at full pay for the first seven weeks and 50% pay for the remaining seven weeks.  

    Discrimination

    There are no specific laws in Qatar relating to non-discrimination in employment.

    The Qatari constitution provides that all individuals must be treated equally and that no discrimination based on race, nationality, religious belief or social status should take place.

    Female employees are entitled to be given the same opportunities for training and promotion and to receive the same pay as equivalent male employees.

    Positive discrimination in favour of Qatari nationals is permitted. Qatari nationals must be given priority in employment. Qatarisation policy also provides percentage targets for the employment of Qataris, varying depending on the size and type of employer. 

    Employees cannot, except where there is a ‘bona fide occupational requirement’, be discriminated against based on:

    • Sex;

    • Marital status;

    • Race;

    • Nationality or religion;

    • Mental or physical disability.

    Discrimination for these purposes includes where an employer fails to make reasonable adjustments to accommodate disabled people.

    Positive discrimination in favour of Qatari nationals is permitted.

    Additional protections are also conferred upon legitimate whistle-blowers. 

    Termination of employment

    Employees’ contracts can be terminated for:

    • Dismissal by the employer with appropriate notice. Employers do not have to give a reason for the dismissal in this scenario, except if the employee is protected from dismissal – see below.

    • Summary dismissal based on the employee’s gross misconduct or absence being due to over 12 weeks’ sick leave.

    • Termination by mutual consent.

    Employers are entitled to dismiss employees summarily – i.e. without notice – for any of the reasons set out in the Qatari Labour Law.

    Employees must not be dismissed or given notice of dismissal during annual leave, for taking maternity-related leave or during such leave, or during pilgrimage leave.

    Employers must pay for the repatriation of the employee to their home country within two weeks of the employment ending, unless the employee obtains a new role in Qatar.

    Employees can be dismissed at any time for any lawful reason by providing the required notice.

    Employers are entitled to dismiss employees summarily – i.e. without notice – for any of the reasons set out in the QFC Employment Regulations. These include where the employee has committed a material breach of their employment contract and where the employee has ‘engaged in gross misconduct’. 

    Notice period

    Where an employer terminates an employment contract with notice, the following minimum statutory notice periods apply:

    • Employees with two years’ service of less – one month notice;

    • Employees with more than two years’ service – two months notice.

    Employers can make a payment in lieu of notice. 

    Employees can be dismissed on notice by providing a minimum of:

    • Two weeks’ notice if the employee has been employed for less than three months;

    • One month notice if the employee has been employed between three months and five years; and

    • Three months’ notice if the employee has been employed for more than five years.

    Employees can be paid in lieu of notice and can waive their right to receive notice. 

    End of service gratuity/pension

    Employees not covered by a statutory pension scheme are entitled to an end of service gratuity payment. Employees who have been employed for at least one year of continuous service are entitled to 21 days’ basic pay for each year of service, pro-rated to the exact date of termination.

    Employees lose their entitlement to an end of service gratuity payment where:

    • They are summarily dismissed for gross misconduct; or

    • The employee resigns without providing the necessary notice to the employer.

    Qatari national employees may be entitled to be covered by the state retirement pension scheme. Employers must contribute 10% of gross pay to the state pension scheme, which is administered by the General Retirement and Social Insurance Authority (GRSIA). Qualifying employees must contribute a further 5%, which needs to be deducted by the employer at source. 

    The requirement for Qatari national employees to be covered by the state retirement pension scheme also applied within the QFC.

    There is no obligation to provide an end of service gratuity payment to employees within the QFC. 

    Employee claims

    Where an employer terminates a fixed term employment contract prior to its expiry date, except for gross misconduct, the employee could claim damages for unlawful termination. Employees can further bring claims for any other breaches of the Labour Law by the employer.  

    Employees can file a complaint with the QFC’s Employment Standards Office for contraventions of the QFC Employment Regulations. The QFC Employment Regulations do not contain a specific right to bring a claim for unfair or arbitrary dismissal. 

    Sources


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