Deducting salary for machinery damage

QUESTION: In our company plant, a machinery got damaged. The management conducted an enquiry and stated in its report that the plant employees are responsible for damage or loss. We received a notice stating that half of the salary will be deducted as compensation for the damage. We feel we are not responsible for the damage. Is it legal to deduct the salary? Please advise.

YI, Doha

ANSWER: According to Article 71, an employee shall be obliged to compensate the employer for the loss of or damage or destruction to machinery, products or equipment of the establishment as a result of his fault provided that the obligation of the employee for the compensation shall be preceded by an enquiry. The employer may deduct the value of the compensation from the wage due to the employee provided that the value of the compensation does not exceed the employee’s wages for seven days in one month.
The employee may appeal against the employer’s decision on the valuation of the compensation to the Department of Labour within seven days from the date of notification. If the department cancels the employer’s decision or evaluates a lesser compensation due from the employee, the employer shall return the amount which he has deducted in excess without a right thereto within not more than seven days.

Extra cost for contract work

Q: We are engaged in construction contracts and we subcontracted a work to a company in Doha for execution of a part of the work. I am the project manager. They have completed the work without any delay. But the rate estimated as per the contract exceeded 20% of the total value upon completion. They have not notified us on the change in estimated cost in advance. Now they have issued an additional invoice covering the additional cost. Are we liable to pay the additional cost? Please advise.

UJ, Doha

A: According to Article 708 of the relevant Laws, where the contract is made on an estimated measurement basis and during the progress of the work it is deemed necessary to exceed the assessed measurements to execute the agreed design, the contractor shall notify the employer thereof, stating the extent of the increase in costs. Failure to do so shall result in the contractor losing the right to reimbursement for the extra costs incurred. Where such extra costs required for the execution of the design are substantial, the employer may withdraw from the contract and stop such execution without delay, provided that the contractor is paid for the works completed by him, assessed in accordance with the conditions of the contract, without any indemnity against the contingent profit of the contractor in the event of completion of the work.

Grant of NOC is not a legal right

Q: My employer is asking employees to sign a new contract based on the new law. I refused to sign and, as a result, they have terminated me. Can I claim an NOC as I am locally transferred? I have brought my family under my visa and rented an apartment last July the lease contract for which is for two years. Now the rent has become unaffordable. I requested for termination of lease contract and return of the cheques, but the landlord does not agree for the same. Moreover, he is asking three months’ rent as compensation for the termination. Can I approach court for getting the cheques back and to terminate the rental contract as it is an unforeseen situation? Please advise.

RT, Doha

A: As per the prevailing laws and regulations, sponsorship transfer or grant of NOC is issued at the sole discretion of the employer and it is not a legal right. Accordingly, transfer of sponsorship can be made only through a written agreement between the ex-employer and the new employer after being approved by the concerned authority. The sponsorship law does not categorise expatriate employees into local and/or overseas recruits.
Regarding the rental issue, Article 632 of the civil laws stipulates that when a lease is made for a fixed period, either of the contracting parties may, if serious and unforeseen circumstances arise of such nature as to render, from the commencement of or during the lease, the performance too burdensome, demand the termination of the lease before its expiry, provided he gives notice in accordance with the time limits and pays equitable compensation to the other party. Filing a case and obtaining decision will be time consuming and hence, amicable settlement will be ideal; may be by paying landlord a mutually agreed compensation for the termination of contract.

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LEGAL SYSTEM IN QATAR
According to Article 249, the non-director partner in a company that does not have a Supervisory Council may give advice to the directors, demand to review the activities of company and inspect books and documents at its place of business. Any other condition contrary shall be void.
The company shall have a General Assembly comprising all the partners and shall convene meeting upon an invitation by directors at least once a year within the four months following the end of the financial year, at a time and place determined by the Articles of Association.
The directors shall invite for General Assembly meeting upon the request of the Supervisory Council, the auditor or a number of partners holding not less than 20% of the capital. The invitation for the meeting shall be made by registered letter addressed to every partner at least 21 days before meeting. The invitation should specify the place and date of the meeting, and shall be accompanied with the agenda and copy of the balance sheet.
As per Article 251, the director shall prepare the balance sheet, profit and loss account, a report on the company activities and its financial positions and proposals for distribution of profits within two months after the end of every financial year. The directors shall send a copy of this report, a copy of the Supervisory Council report, and a copy of the auditor’s report to the Ministry and to every partner, within one month from the date of preparing such reports. In companies without a supervisory council, every partner may request the directors to invite the partners for a meeting to discuss on such reports.
Every partner has right to attend the general assembly regardless of the number of shares owned by him, and he may authorise another partner other than the directors to represent him at the meeting. Every partner shall have a number of votes equal to the number of shares he owns or represents.
The agenda of the annual General Assembly meeting shall include the following matters: (1) discussion of the director’s report on the company’s activities and financial position during the year and the auditor report; (2) Discussion and approval of the balance sheet and the profit and loss account; (3) Determination of the percentage of profit to be distributed among the partners; (4) Appointing the directors, the Boards of Directors, the members of the Supervisory Council, if available, and determination of their remuneration; (5) Appointment of auditor and determination of remuneration; and (6) Other matters within their jurisdiction in accordance with the provisions of the law or the Articles of Association. ?
According to Article 254, the General Assembly shall not deliberate on issues not included in its agenda unless serious facts are revealed during the meeting that require discussion. If a partner requested the inclusion of a specific item on the agenda, the managers shall comply therewith, otherwise the partner shall be entitled to refer to the General Meeting.
Every partner has the right to discuss the matters listed in the agenda and the directors are obliged to answer the partners’ questions. If a partner considered the reply to his query is insufficient, he may refer to the General Meeting whose resolution shall be enforceable.