QUESTION: I am working as a helper in a contracting company. The company is now in a bad situation. Some days we don’t have work at the company sites. Due to this the company has issued termination notice and agreed to grant NOC for transfer of sponsorship. The company issued a statement of dues in which they excluded the wages for the period when we didn’t have work. Is this legal? And, how to calculate the end-of-service benefit of a worker who has been employed for more than two years? Please guide.
PS, Doha
PS, Doha
ANSWER: According Article 44 of the Labour Law, the worker is entitled for all his benefits if he attends place of work.
The employer shall undertake to enable the worker to perform the work and to provide him with all things necessary therefore, and if the worker attends the place of work and is willing to perform the work but could not do so for reasons beyond his control, he shall be considered to have actually done the work and be entitled to all the benefits.
Article 54 of the Labour Law stipulates that a worker who has completed a period of minimum one year of continuous service shall be entitled to gratuity pay on the termination of employment.
The said pay shall be calculated minimum @3 weeks basic salary for each year of service. If the period of service exceeds two years then it will be calculated prorate.
Dumping waste in private places
Q: Some people always dump waste in our parking lot. Is there any provision of law which regulates dumping of waste in private places? Please advise.
TU, Doha
A: According to Article 32 of the Environmental Protection Law, dumping and burning garbage or treatment of solid and liquid waste shall be restricted except in designated areas away from residential, industrial and agricultural areas and waterways.
Any person who breaches the said provision shall be punished with a fine not less than QR5,000 and not exceeding QR50,000.
Selling shares to third parties
Q: With a colleague, I have started a limited liability company in which I hold 22% shares. Now I wish to sell the shares to my family friend. But my colleague is not agreeing to sell the shares. Is it mandatory to sell the shares to him? What is the provision as per law? Please advise.
OY, Doha
A: According to Article 238 of Commercial Companies Law, unless the Articles of Association stipulate otherwise, if any of the partners wish to assign his share to an individual who is not a partner in the company for consideration, he shall notify the other partners of the assignment terms through the manager.
Upon receipt of such notice, the manager should notify the partners immediately.
Every partner has the right to acquire the share in its actual value and under the same assignment terms.
In the event of disagreement on the price, the company auditor shall estimate the price on the date of redemption.
If a period of 30 days expires from the date of notification with no partner exercising the right of acquisition, the partner shall be free to dispose of his share to third parties.
Case of recovering pending payments
Q: Some payments are pending due from our contractor and we have filed a case for recovery of the same.
The case was filed in March 2016. Until now no final verdict has been issued. A court order was there appointing an expert and we have paid the fee for the same. The expert has not submitted the report. Now the case is postponed for the expert report. We had a discussion on the subject matter in early October and now the expert is not attending any calls. Can he take his own time to finalise the report? Does the law have any provision mandating him to submit the report? Please advise.
AG, Doha
A: According to Article 351 of the Civil and Commercial Procedure law, if the expert has not deposited his report to the court within the term specified, he shall be bound to deposit a submission stating whatever functions he has carried out, and reasons which forestall the completion of his mission.
If justifiable, the court will grant the expert more time to complete the report. Otherwise the court shall adjudge him with a fine not exceeding QR2,000 and grant time or replace him.
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LEGAL SYSTEM IN QATAR
According to Article 256, unless the Articles of Association stipulate a higher majority, the General Meeting resolutions shall be valid only if adopted by a number of votes representing at least one half of the share capital.
If such majority is not achieved during the first meeting, the partners shall be called for another meeting to be held within twenty-one days following the first meeting.
The resolution in the second meeting shall be passed by a majority of the votes represented therein, unless otherwise stipulated in the Articles of Association.
The directors shall not participate in voting on resolution relating to their release from management responsibilities or dismissal.
As per Article 258, it is not permissible to amend the Articles of Association nor increase or decrease of company share capital without the approval of partners representing three quarters of the share capital, unless the Articles of Association stipulates in addition to the requirement to a numerical majority of the partners.
Nevertheless, the liabilities of partners shall not be increased without their unanimous approval.
An adequate summary of minutes of the General Meeting deliberations shall be prepared.
The General Meeting minutes and resolutions shall be entered in a special register kept at the company head office and the partners shall have the right to pursue such register as well as the balance sheet, the profit and loss statement, and the annual report either personally or through agent.
According to Article 261, without prejudice to the rights of bona fide parties, any resolution passed by the General Assembly or the partners in violation of this law or the provisions of the Articles of Association shall be void.
Notwithstanding, a request to revoke a resolution shall not be applied for except by partners who objected in writing to the resolution, or those who could not object thereto upon their knowledge thereof.
When the resolution is ruled void, the resolution shall be deemed null and void with respect to all partners.
An action to revoke a resolution may not be heard after the lapse of one year from the issuance of such resolution.
No stay of execution of the resolution shall follow the action to revoke the resolution, unless the court rules otherwise.
As per Article 262, the company shall annually deduct 10% of its net profit to form a legal reserve.
The partners may discontinue this deduction where the reserve amounts to half of the share capital.
The partners may by passing a resolution in the General Assembly decide to utilise the legal reserve to cover the company losses or increase the capital.
A holding company is a joint stock company, a limited liability company or a single-person company which has financial and management control over one or more other companies which become its affiliate by owning at least 51% of the shares of such company or companies.
The affiliates may be joint stock companies, limited liability companies or single person companies.
No holding company may own shares in Joint-Liability Companies or both kinds of Limited Partnerships and it is also prohibited to own stocks or shares of other holding companies.
The capital of holding company shall not be less than QR10mn.
The words ‘Holding Company’ shall be added next to the commercial name of a Holding Company in all papers, notices, correspondence and other documents issued by the company.
