QUESTION: What are the regulations for Eid holidays? The company where I work gives just one day as holiday. The management says we should work other days as business is good during the extended holidays. No extra payment is given for working on holidays. Also, Eid holidays are given only to Muslims.
TG, Doha
ANSWER: Article 78 of the Qatar Labour Laws stipulates holiday entitlements. The worker shall be entitled annually to leave with three working days’ full wage each for Eid al-Fitr and Eid al-Adha irrespective of their religion; one working day for Independence Day and three working days to be specified by the employer. If the circumstances of the work require the employment of the worker on any such leave days, the provisions of article 75 of the law relating to overtime shall be applied.
Thus, the Labour Law provides a public holiday of three days for Eid al-Fitr. Eid holidays are officially announced on or shortly before they are due to begin. If the Eid holidays fall on a Friday, Saturday or indeed any other public holiday, it is likely that a day either before or after will be allocated as a holiday to make up for the loss. In addition, if the circumstances of the work require the employee to work during Eid, the employee is required to be compensated for the rest day in accordance with the Labour Law.
Liquidation procedures
Q: I have been engaged in marketing business in Doha and now due to some financial issues we partners have decided to close the company.
As instructed by the sponsor we have engaged a person to close the company. It’s almost four months since the date of his appointment. Now he is settling the company’s the debts. How will the partners get their investments back or do we have to pay any money to the government? Do we have the right to verify the accounts prepared by the liquidator?
PQ, Doha
A: As per Article 317 of the Companies law, after the payment of debts, the liquidator of the company has to pay the partners the cash value of their shares in the capital and distribute among them the surplus as per their share in the profit.
The assets of the company shall be shared in the ratio of profit sharing unless the memorandum of association provides otherwise. If the net assets of the company are insufficient to settle all shares of the partners, the loss shall be distributed among them in the ratio of distribution of losses.
According to Article 319, at the end of the liquidation, the Liquidator has to submit a final account statement to the shareholders for approval by the General Assembly or the court, and unless approved by the partners or the General Assembly or the court, the liquidation process shall not be deemed completed.
The closure of liquidation process shall not be enforceable against third parties unless from its declaration date.
After the completion of the liquidation, the Liquidator shall apply for cancellation of the company from the Commercial Register.
Common terms in commercial deals
Q: We are engaged in small-scale procurement business and we have received a project with one of the major companies in Doha. The contract is to supply certain items. On a contract with an international company for supply of products, they have mentioned the terms Incoterms and DAP. Please explain the terms.
SD, Doha
A: Incoterms or International Commercial Terms are used to specify the most commonly-used terms in international commercial transactions or procurement processes. It aims to standardise the terminology used in international trade and are periodically updated to reflect the most up to date practices in transport and commerce. Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. DAP defines Delivery at Place.
The seller fulfils his obligations and their responsibility ends when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. It is the duty of the seller to carry out all necessary formalities at his own cost for clearing the goods for export and the customs clearance in the importing country needs to be completed by the buyer at his own cost and risk, including all customs duties and taxes. The risk passes from seller to buyer from the point of destination mentioned in the contract of delivery.
Under DAP terms, all carriage expenses with any terminal expenses are paid by seller up to the agreed destination point. The necessary unloading cost at final destination has to be borne by buyer under DAP terms.
- Please send questions by e-mail to: [email protected] (Mobile: 55813105)
LEGAL SYSTEM IN QATAR
The manager shall be responsible for any damage affecting the company or the partners or third party as a result of breach of the company memorandum or default in carrying out his function; and any provision to the contrary shall be null and void.
According to Article 44, profits, losses, and the share of every partner therein shall be determined at the end of the financial year on the basis of the budget and profit and loss statement.
Every partner shall be considered as a creditor to the company regarding his share in the profits immediately upon the determination of such share based on the accounts.
A deficit in the company capital resulting from losses shall be compensated from the profits of the following years unless otherwise agreed.
In other cases, the partners are not obliged to compensate the deficit in his share of capital as a result of losses without consent.
The limited partnership is a company formed of two kinds of partners:
(1) Joint partners, namely those who manage the company and are jointly responsible for all the company liabilities against their personal assets; and
(2) The silent partners are those who subscribe to the company capital and shall be responsible for the company liabilities only to the extent of their share in the capital or what they committed to pay to the company.
All joint partners shall be natural persons who are nationals of the state.
The company memorandum should state the names of all the partners. As per Article 48, the name of the limited partnership company shall not include any names other than the names of the joint partners, with an addition indicating the existence of other partners.
The company may have special trade name, provided that it shall be associated with an indication that it is a limited partnership company. The name of the silent partner should not be incorporated in the name of the company. If knowingly incorporated, such silent partner shall be jointly responsible as a joint partner towards third parties acting in good faith.
According to Article 49, the silent partner shall not interfere in the management of the company, even by virtue of a power of attorney.
If the sleeping partner does interfere, he shall be jointly and severally liable for the obligations arising from his management acts depending on the seriousness and frequency of such actions, subject to the third parties confidence in him by virtue of such actions.
Notwithstanding, mere supervision of the acts of the managers and the giving advice thereto and permitting them to act outside the scope of their authorities shall not be deemed as interference.
The silent partner may demand for a copy of balance sheet and profit and loss account, and to ascertain the authenticity of the contents, wherein for this purpose, he shall have the right to review the company books and documents in person or through an authorised representative.
As per Article 51, unless otherwise the memorandum stipulates, the resolutions of the limited partnership company shall be issued by unanimous vote of joint partners.
The resolutions relating to the amendment of the memorandum shall not be valid unless issued unanimously by all acting and silent partners.
