Worker and employer must respect contract

By Nizar Kochery /Doha

QUESTION: I was hired by an establishment when I was in Doha on a visit visa. At the time of hiring, my employer promised to provide accommodation. But when the contract was signed after processing my work visa, the employer changed what we had agreed to verbally. If I refuse to sign the contract what will be the consequences for me? How is gratuity calculated? Must gratuity be included in the job contract or is it something that a worker could take it for granted when he resigns or his service terminated? Also, I understand that after a year an employee is entitled to 30 days of annual leave. Should it be included in the contract or can I take it for granted that my leave will change after a year?

HU, Doha

ANSWER: Parties to a contract are bound to its terms and conditions. The relationship between worker and employer will be expressed in writing by signing the employment contract, which will be respected by both parties. According to Article 38 of the Labour Laws, the employment contract shall be made in writing and attested by the Labour Department.

If the proposed employment contract does not specify the terms of employment agreed, worker may refuse to sign and remain on visit visa. The gratuity (at the rate of three weeks’ basic pay for every year of service) and annual leave (at the rate of three weeks for first five years and four weeks thereafter) are among the various rights of workers which are regulated by the Labour Law. They are not necessarily mentioned in the contract. However, a standard job contract will mention that any other rights and obligations that are not mentioned in the contract will be subject to the Labour Law. So these rights are taken for granted.

Impact of change in ownership

Q: If a Qatar WLL company is closing or being sold to another existing company, will the employees still receive their benefits of gratuity? I have been working with a company since October 2001. Can I claim my gratuity and annual leave benefits? In our employment contract, basic wage is specified and also total wage. Which one will be considered for gratuity calculation?

OP, Doha

A: According to Article 52, the employment contract shall not terminate on transfer of ownership of the company/employer. The new owner shall be jointly liable with the former employer for the payment of the workers entitlements accruing from the latter. Gratuity entitlement up to year 2005 will be based on specific provision in the employment contract. However, from the year 2005 the worker will be eligible for gratuity at the rate of three weeks a year and prorate.

Basic wage is significant when calculating end-of-service gratuity, which is determined on the basis of an employee’s last basic wage received as opposed to the employee’s total wage received.

The term basic wage is an employee’s wage excluding all allowances of whatever nature and is specified in the labour contract as such. Total wage, on the other hand, is an employee’s wage inclusive of all allowances provided such as accommodation and travel allowances. The employer will calculate gratuity on the basis of the basic wage which, as mentioned above, excludes housing, transportation and any allowance.

Sacked for extending leave

Q: I have been working as a sales and marketing co-ordinator with a construction materials trading company in Doha. My company terminated me from service (on the second day I reported for duty after my annual leave), using Article 61 for extending my leave to 37 days. The extension was unavoidable as my wife was in hospital. I had informed the company about this through an e-mail. Now the company says I am not eligible for any benefits like two months’ salary compensation. They also say that a ban will be imposed on me. Please tell me what are the implications of article 61? Can I at least get time to find another job?”

IK, Doha

A: An employer may take an action against his worker based on article 61. But in all cases, the worker is entitled to resort to the Labour Department and the court if he feels the action was unfair. It is the court which decides whether this article is applicable or not.

Article 61 of the Labour Law states that an employer may dismiss a worker without notice if the worker is absent from his work without a valid reason for more than 15 non-consecutive days or more than seven consecutive days.

Subletting requires landlord’s consent

Q: We have rented a workshop to do business for five years. Unfortunately the business has not worked out as we have planned. We have approached the landlord to cancel the contract. He refuses. There is a clause in the contract that the contract is not terminable for the whole period of contract. Can we sublet this place without his permission? Will this affect the new tenant? One of our cheques has already been bounced. How will this  affect the rental contract?

AB, Doha

A: As per law, the original tenant’s act of sublet requires the clear consent of the landlord. If the original tenant does not have such rights, the law will not protect the sub-tenant. The landlord can get the property vacated for non-payment of rent by cheque dishonour. As per laws regulating rental relationships tenant is legally obliged to pay rentals in seven days. In the event of non-payment within the period, the landlord can file a rental case before the Rental Dispute Settlement Committee to claim for rentals for the whole period and termination of the contract.

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LEGAL SYSTEM IN QATAR

The court may, on the demand of anyone of the partners, order the dissolution of a partnership for non-performance by a partner of his obligations, or for any other reason not attributable to the partners. The judge shall decide whether such reason is sufficiently serious to justify the dissolution. Any agreement to the contrary shall be void.

As per Article 539, any partner may apply to the court for the exclusion of anyone of the partners whose presence in the partnership has given rise to objections to the extension of the duration of the partnership, or whose actions might be held to provide good grounds for the dissolution of the partnership, while the partnership continues between the other partners.

A partner may also, if the duration of the partnership is fixed, apply to the court to authorise his retirement from the partnership if he gives adequate reasons for his application. In such a case, unless the other partners agree to continue the partnership, it will be dissolved.

The liquidation and sharing of the company’s assets shall take place in the manner laid down by the company’s memorandum of association. When the company’s memorandum of association is silent, the following procedure will be followed.

The powers of the managers shall cease upon the dissolution of the company, but the juristic entity of the company shall continue, in so far as is necessary, for and up to the end of the liquidation. The liquidation shall be carried out either by all the partners or by one or more liquidators appointed by the majority of the partners as the case may be.

If the partners do not agree on the appointment of a liquidator, such liquidator will, upon the application of one of the partners, be appointed by the judge. In case of nullity of the partnership, the court will appoint a liquidator and will decide upon the method of liquidation upon the application of any interested party.

Until a liquidator is appointed, the managing partners shall be deemed, as far as third parties are concerned, to be the liquidators. According to Article 543, a liquidator may not undertake new business on behalf of the company unless it is necessary for the purpose of completing the old business. He may sell movables and immovable belonging to the company by auction or by private treaty, unless his powers in this respect have been restricted by the instrument by which he was appointed.