QUESTION: I started working in Qatar from August 22, 2012. My visa expires on August 18 this year. I plan to resign from my company after completing two years and I have already given two months’ notice. Because of my mother’s death I took one month’s leave and one more month leave for annual vacation (21 days only paid leave) during the last two years. The company tells that I have to work two more months to compensate for the two months’ leave I have taken. Otherwise the company says it will not issue my exit permit. Am I not eligible for 21 days leave for annual vacation and 15 days’ emergency leave? Is the company’s stand legal?
BR, Doha
ANSWER: Requiring worker to serve two more months to facilitate exit permit is not in compliance. Upon completion of one year in continuous service, a worker will be entitled to annual leave for three weeks per year.
The employer shall fix the date of the annual leave for the worker in accordance with the work requirements.
The employer may schedule the leave during the year and split (twice) leave is also permitted subject to consent of the employee. Continuous service will not be interrupted in case of periods of leave, permitted or agreed absence (Article 1 (16).
Emergency leave is not included in the Labour Law. Therefore, the employer may deduct the same from his annual leave or to consider it as unpaid leave.
Gratuity calculation
Q: I have been working with a private company for five years and five months. How much gratuity will I get if receive now? Our company insists that it doesn’t give gratuity if the employee is not able to complete five years of continue service. My salary is QR3,500 basic plus QR3,000 in allowance. I believe allowance will not be part of the gratuity calculation. This may be the reason why our company increases the allowance instead of the basic salary.
JS, Doha
A: Unless otherwise a higher rate agreed in your contract, the gratuity will be calculated at the rate of three weeks’ basic salary per year and prorate. Accordingly, you are entitled for 16.25 weeks basic salary. One year in service is the required minimum service to become eligible for gratuity entitlement.
Joint liability
Q: I hold 49% shares in a company in Doha. The complete investment is from me. My partner has now taken over the business and he doesn’t allow me to be involved in the company. His complaint was I had not been asking for an increase in contract prices. I am a manager having sign authority. For the problems of my partner in business what will be my liability? What’s the law for increase in price in a lump-sum contract?
HG, Doha
A: As per commercial companies Law, the signatories shall be jointly liable for indemnification of the company, partners and third parties for the damages resulting from cheating, misuse of power, breach of companies law or the Articles of Association of the company as well as for the mistaken management.
When a contract is concluded on a lump-sum basis according to a plan agreed with the employer, the contractor has no claim to an increase of price, even if modifications and additions are made to the plan, unless such modifications or additions are due to the fault of the employer or have been authorised by the employer. The relevant provision is Article 709 of the Civil Laws.
Earnest money
Q: What is earnest money and what are liquidated damages? Are these complimentary? We have ordered some procurement and the bidder proposes earnest money. Please explain.
HK, Doha
A: Earnest money is a deposit paid to express commitment and to bind a contract, with the remainder due at a particular time. However liquidated damages are deemed to be ancillary contractual obligations, in the sense that they will not apply unless a primary obligation has been established in the first place.
While entering into a sale agreement the buyer pays a sum amount as a deposit, such deposit is considered part of the price in a final binding agreement unless the agreement or custom dictates that such deposit is considered as earnest money in an agreement where the parties agreed to practice the right to renege; in which case if such agreement is terminated by the buyer, he loses the right to recover such deposit, however, if the agreement was terminated by the seller, he becomes obliged to refund the buyer the paid deposit.
Liquidated damages are not by itself a cause of action for a claim for damages. Rather, they can only be invoked for establishing the amount of damages claimed.
Rental dispute
Q: Where should I file a residential rental dispute case? In the civil court or in the rental court? I have been told that if I go to the rental court, the decision can’t be appealed. Will there be an automatic stay if the decision of the rental court is adverse?
AS, Doha
A: The rental dispute settlement committee exercises jurisdiction over rental disputes. The committee’s decisions may be appealed to the court of appeal. According to Article 189 of the procedural code, objections to the verdict shall not stay execution thereof unless the court with which the objection is filed orders it to be stayed for substantial reasons.
♦
LEGAL SYSTEM IN QATAR
Each co-owner shall be allotted his share if the co-owners so agree or if the partition cannot be effected on the basis of the smallest share. If one of the co-owners cannot obtain his entire share in kind, he shall be compensated by the person who obtains the biggest share by making payment equal to the shortage in his share.
In general, the court will decide upon any disputes relating to the composition of the separate parts and any other disputes coming within its competence. When a property cannot be divided in kind or when such partition involves a serious diminution in the value of the property, the court may order the sale thereof by auction in the manner laid down by the Civil and Commercial Procedures Act. However, the court may order that the sale by auction will be restricted to the co-owners in common if they ask for it unanimously.
The co-owners shall, whether the partition is determined by the Court or by mutual agreement, involve the creditors whose rights are recognised before bringing the legal action or before the agreement on the amicable partition, otherwise the partition shall not be effective towards them.
The personal creditors of every co-owner may oppose a partition by a court order without their intervention in the proceeding. Such opposition must be notified by a registered letter with a note of delivery to all the co-owners and has the effect of compelling the co-owners to join the opposing creditors in every stage of the proceedings; otherwise the partition will be without effect as regards such opposing creditors.
According to Article 871, each co-partitioner is deemed to have been owner of the part of the property that falls to him. His ownership shall be free of every right created by the other co-owners unless such right is established by the unanimous or majority decision of the co-owners according to the law.
According to Article 872, if a co-owner’s part is encumbered prior to the partition by a right in kind, the partition shall result in encumbering the co-owner’s part with such right or a part thereof in proportion to the value of the part that was encumbered with the said right. The court shall determine such part in case of disagreement among the concerned parties.
The co-partitioners warrant each other against interference or eviction due to a cause that existed previous to the partition. If the share of the co-partitioner becomes due in whole or in part, he shall be entitled to demand rescinding the partition and carrying out a new partition if possible without prejudicing the other co-practitioners or third parties. If he does not demand such rescission or if a new partition is not feasible, the person entitled to indemnity shall have recourse against the other co-partitioners to the extent of the reduction in his share on the basis of the value of the partitioned property on the due date.