By Nizar Kochery/Doha


QUESTION: Is a written acknowledgement promising repayment of a personal loan legally valid? I have given a personal loan to a coworker few years ago but he now denies he has borrowed anything from me. The company has terminated him and he is due to leave Doha soon. There is a written agreement with him in which he promises to repay the loan to me. It contains the signature of a witness. How can I take legal measures to stop both the signatories from travelling? How far will this be effective?
AB, Doha

ANSWER: A promissory note is a bilateral arrangement between a promissor and beneficiary.
A legally enforceable credit instrument and the issuer of a promissory note has the same obligations as the acceptor of bills of exchange.
In the event of a non-payment, the law allows the beneficiary recourse against the issuer but not against the witness.
Creditor may use the witness to establish the authenticity of the instrument. According to Article No 405 of the Civil and Commercial Procedures, the creditor may move the court to ban the debtor from travelling outside the country for reasons, such as the creditor fears that the debtor may escape from litigation or smuggle his assets.
Debtor can appeal the order and request lifting it on repayment or by providing sufficient guarantees. They can also request lifting this ban if there are compelling reasons for travel.

Entry and exit laws
Q: I am working with a private company in Doha. My wife is working for a different private company in Doha on the company’s work visa. If I resign and go back to my native country and if my present sponsor cancel my visa and ban my entry to Qatar for two years, is it possible for me to come back to Doha immediately after exiting Qatar on my wife’s sponsorship?
Is it possible for me to come back to Doha immediately after exiting Qatar on visit visa under my wife’s sponsorship?
Is it also possible for me to come back to Doha immediately after exiting Qatar on tourist visa provided by a local hotel?
AR, Doha

A: Pursuant to Article (4) of the prevailing Entry and Exit Laws, there will be a ban for grant of work visa for a period of two years. Foreign workers are allowed to come back to Qatar to take up job with another company only after a two-year gap counted from the date of departure of a worker. Family visa, tourist visa are not included in the prohibition. However, the grant of visa under any category will be at the discretion of immigration authorities.

Working on Fridays
Q: What is Qatar Labour rule regarding Friday overtime? I work two Fridays every month. If I work on a Friday how much payment will I get as overtime as per Qatar Labour rule? Am I eligible for a compensatory day-off for working on Friday plus overtime payment?
I have signed an employment contract with the company. Even after my repeated requests, the company does not provide me the contract’s copy. Can I get a copy of the contract legally?
SD, Doha

A: Article 75 of the Labour Laws stipulate paid weekly rest day and with the exception of the shift workers, Friday shall be the weekly rest day for all workers. If the circumstances of the work necessitate the employment of the worker during the rest day, the worker shall be compensated for the rest day by another day, and shall be paid for working that day the wage payable to him for the ordinary weekly rest day or his basic wage plus an increase of not less than 150%. Moreover with the exception of shift workers a worker shall not be required to work more than two consecutive Fridays.
Regarding copy of the employment contract, According to Article 38 of the Labour Laws, the employment contract shall be made in writing for attestation at Labour Department and shall comprise three copies and the employee is entitled to get a copy of the employment contract.

Sale of shares in a company
Q: I am a minority partner of an LLC company in Doha. The partners are not on good terms now. At this stage I wish to sell my shares in the company to one of the partners. Being a minority shareholder, is it mandatory to sell the shares to existing partners? Is it possible to sell shares to a third party?
AA, Doha

A: The Commercial Companies Law does not provide any special provisions for minority shareholder. As per law, only one class of shares is permitted and each share carries one vote. Moreover approvals must be obtained from the Commercial Companies Department, the Department of Labour confirming no outstanding employment claims, and the tax authority, confirming there is no outstanding tax obligations for transfer shares.
Regarding sale of shares, unless the Article of Association of the company stipulates otherwise, the selling partner shall notify the other partners of the assignment terms in accordance with Article 236 of commercial Companies law. Each partner is entitled to acquire the share for its real price and on the same condition.
In the event of disagreement, the company’s auditor shall fix the price as per books of accounts. The partner shall be free to dispose of his shares, if no partner requests recovery of the share after thirty days from the date of notification. There are no other restrictions on transfer mandated by law.

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LEGAL SYSTEM IN QATAR
According to Article 119, the buyer shall bear the loss of sold goods retained by the seller, unless destroyed by the act of seller. Considering the terms agreed between the parties or the custom, if the buyer made the payment before the due date shall be entitled for the deduction from the price.
As per Article 122, if the agreement or custom is silent on place or time of delivery of goods, the buyer shall take delivery at the place where the goods is located at the time of sale. The seller shall bear the cost of delivery of goods unless agreed otherwise. If the buyer refuses to take delivery of goods, the seller shall deposit with the custodian and sell them at auction on completion of reasonable period after notifying the buyer.
No such notification is required in case of perishable goods. In case of bankruptcy of buyer or if buyer failed to provide guarantee as agreed in the contract, the seller may retain the goods sold even if the time stipulated for the payment has not expired.
According to Article 126, the recession of sale shall not be decreed upon on failure to pay one of the instalments if it is established that buyer has executed the larger part of obligations. If the seller retains possession of goods sold, the buyer acquires the possession of goods with the payment of final instalment and shall bear the risk from the time of delivery.
Unless the seller approves in writing, the buyer shall not dispose the goods sold prior to settlement of instalments in full.
Any disposal made by the buyer to the third party in violation of this provision shall not be void towards the seller; unless it is proved that, the third party is aware on non-payment of instalments in full.
In the event, if the buyer disposes the goods without approval prior to settlement of instalments in full, the seller may claim payment of the remaining instalments forthwith.
Without obtaining the permit from the competent authority, the Commercial premises shall not advertise or sell their goods at reduced price or at public auction. Sale at reduced prices means the business advertises the sale of all or the majority of goods at a reduced price for a limited period, such as end of season sale, closing down sale or any other similar occasions.
Sale at public auction is permitted in case of final liquidation of the commercial premises, abandonment of trade ?nally in one or more commodities, liquidation of one of the branches or clearance of defective goods due to ?re or humidity or infestation or something similar. The trader must advertise the reason for the sale before conducting the auction.