By Nizar Kochery/Doha
Question: One of our partners holding 23% shares in the company passed away. Our company is WLL (with limited liability). Will this lead the company to dissolution? There are no specific clauses in the documents of the company. What procedure should we follow?
SR, Doha
Answer: As per Article 237 of the Companies Law - No5 of 2002, the shareholding of every shareholder shall revert to his heirs or those persons mentioned in his will. Accordingly shares of the deceased shall be transferred by inheritance to the heirs or legatees of the shareholder.
The company may request the heirs or legatees to select, from among themselves, one to represent them. They shall be granted a reasonable period for this selection. In case the selection is not made within this period, the company may sell the shares in accordance with the Articles of Association and the Law but for the account of the heirs or legatees at a price based on what is shown in an Auditor’s report as at the time immediately before the death.
Regarding dissolution, Article 289 stipulates that unless the company’s Articles of Association otherwise provides, a limited liability company shall not be dissolved upon a shareholder’s death.
Salary cannot be withheld
Q: Our company is holding two months’ salary and deducting 10% of the basic wages every month. The company’s explanation is that it is to meet uncertainties. The company has also given an oral undertaking it would add an equal amount to support worker. We all appreciated the company’s initiative thinking it was in the interest of the employees.
However, recently the wife of one of our employees met with a serious accident and he had to leave on emergency reasons and requested the company to pay this money.
The company issued an explanation (not in writing) that this money would be reimbursed only on termination. The termination is the uncertain situation. Please explain the law on deductions. The salary slip shows no deduction but basic salary and payment made are shown.
KJJ, Doha
A: As per Labour Laws, no portion of the salary of the employee shall be stopped or withheld by the employer without a court order. In case of attachment of the salary or part of it due to a court order to pay debts or alimony or other outstanding amounts, the portion should not exceed 35% of the salary.
Interest free loans / advances are permitted but the employer shall not deduct more than 10% of the salary against any amount owed to the establishment.
In all cases, the total deduction from the employees to meet any commitments shall not exceed 50% of the salary. If the amount exceeds 50% in one month, the balance amount shall be collected in the following months.
Accident at work sites
Q: Is there a set procedure for accident reporting in companies? In our site if there is an accident the company takes the injured worker to any private clinic. If it is a serious case, they send the worker back home saying there will be better treatment in home country. On repatriation the visa is cancelled and everything ends there. Is this correct?
AT, Doha
A: Labour Laws set procedures for reporting work accidents. Accordingly if the worker suffers a work accident or an occupational disease, the employer should report the accident immediately to the police and labour department. The information should include a brief description of the incident and its circumstances, and the measures taken for treatment.
Upon receiving the information from the employer, the police shall perform the necessary investigation stating in their report testimony from witnesses, the employer or his representative, and the injured person if his condition allows him to testify. The report shall specifically state whether the accident was related to work, whether it took place intentionally, or as a result of misbehaviour on the part of the employee. If the report came to the conclusion that one of the employer’s personnel or managers was at fault or negligent, he may be prosecuted in a criminal court for the act or omission.
The employer will be under legal obligation to pay the travel expenses and cost of treatment till the worker recovers or his disability becomes certain. If the injury prevents the employee from performing his duties, the employer shall pay him his wage during the treatment period or for six months whichever is less. If the treatment takes more than six months, then the payment shall be reduced by half till the employee recovers, his disability becomes certain, or he dies, whichever comes first. On establishing percentage of disability, the compensation shall be based on Shariah Laws. The amount of compensation for death or 100% permanent total disability is QR200,000.
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LEGAL SYSTEM IN QATAR
According to Article 691 of the civil laws, if the materials are supplied by the employer and the item or property is destroyed or damaged because of a sudden accident or force majeure, he shall not be entitled to demand the contractor to pay the value thereof unless the contractor has committed at the time of destruction or damage a breach of his obligation to hand over the work and has not proved that the item could have been damaged if he has effected the hand over without breach of his obligation. The work materials shall be deemed to have been supplied by the employer if he has paid to the contractor the value thereof or made a payment on account covering such value.
On obligations of the employer, under Article 692, where the execution of the work requires the employer to do a certain act but he fails to do it at the appropriate time, the contractor may instruct him to do it within a reasonable time limit which he shall prescribe. If the time limit expires without the employer’s performance of his obligation, the contractor may request termination of the contract without prejudice to his right to compensation if there are grounds therefore.
When the contractor completes the works and places them at the employer’s disposal, the employer shall, as soon as possible, take delivery in accordance with prevailing custom. When the employer, in spite of being formally summoned, fails without reasonable cause, to take delivery of the works, the works will be deemed to have been delivered to him.
An employer may refuse to take delivery if the defects in the works or violation of the mutually agreed conditions exceed to such an extent that they would not serve the intended purpose. If the defects or violation are not of such seriousness, the employer shall only be empowered to reduce the consideration in proportion to the significance of the defect or shall oblige the contractor to rectify the defect within a reasonable time limit to be fixed by himself such rectification is feasible and does not involve exorbitant costs. In all cases, the contractor may carry out such rectification within a reasonable period of time, if this is possible and does not cause substantial damages to the employer. However an employer shall not invoke the said rights where he is responsible for causing the defect whether by issuing orders contrary to the contractor’s view or in any other manner.