Opinion

Landlords may raise rent only by 10%

Landlords may raise rent only by 10%

April 17, 2015 | 08:32 PM

By Nizar Kochery/DohaQUESTION: I have been staying for the last one year in a fully-furnished three bed-room apartment. My landlord has just increased the rents varying from 25 to 40%. Are such steep increases allowed? Is there any rent control act to control such unilateral decision? What is the maximum per cent increase allowed in a year? What action can tenants take to protect their interests against such decision?KY, DohaANSWER: Landlords shall not hike the rent by not more than 10% a year. There is no obligation on the tenant to pay 10% increase every year voluntarily. The law provides only a right of annual increase up to 10% to the landlord. The law does not stipulate that if the landlord abstains to receive rent the tenant must deposit the rent with 10% increase therein the court. Unless and until a new agreement is signed, the rent will continue at the ongoing rate. Law No 4 of 2006, which has since been repealed, capped the rental increase in any renewed lease to 10% of the rental amount. Article 10 of the 2008 Lease Law does not permit landlords to increase the rent in respect of leases existing prior to or after the enactment of the Lease Law, except in accordance with the rules, terms and rates to be issued by the Council of Ministers. Pursuant to the Decision No 9 of 2010, a landlord is entitled to increase the rent upon renewal for commercial leases complying with the limits set out there under. If the landlord abstains from receiving the due rent, the tenant may, not later than a week of the date agreed upon or of the month for which the rent is due, notify the landlord by means of a registered letter to receive it within seven days. If he fails to receive the rent during this period, the tenant shall within next seven days deposit it in the safe of the civil court and this shall be considered as payment of the rent on the prescribed date. Both the tenant and the court shall notify the landlord of this deposit by a registered letter.Termination during annual leave illegal

Q: The construction company, which I joined in 2013, recently issued a termination letter to me during my annual leave. I am in Doha with my family and my children are studying in a school. What is the legality of terminating my contract during my leave period? HJ, DohaA: According to Article 85, termination during annual leave is not legal. The employer shall not terminate the service contract or notify the worker of the termination thereof during any of his periods of leave. Any notification of the termination of the contract is also prohibited if the notice period expires during any of such periods of leave. Arbitration agreement

Q: Is it mandatory that an arbitration agreement should be in writing? Will parties be allowed to proceed with a court case if mutually agreed even when there is an arbitration clause in the contract? Will court entertain a case overlooking the arbitration clause? When there is an arbitration clause, can one arbitrarily take jurisdiction to court?DT, DohaA: Under Article 190 of the Civil Laws, any agreement to referring issues to arbitration must be in writing. However, litigants waive their rights to have recourse to the court initially the competent jurisdiction to examine the dispute.If a dispute arises in respect of the execution of a contact that includes arbitration, and one of its parties brings an action before the competent court, the other party may raise arbitration as an objection to the non-acceptance of the court action. Accordingly, where there is an arbitration clause in any agreement and a party to that agreement has commenced substantive proceedings in the court, the other party may raise objection on the basis of the arbitration clause. The courts will generally stay proceedings in accordance with this provision. Accident at the site

Q: There was an accident at our site and one of our employees died and few others were injured. Though not involved, police arrested our safety officer and site manager. Why did the police detain them? Is there any liability for the owners of the company in this matter?LK, DohaA: In the event of a site accident the police may arrest persons in authority at site together with any person to which the accident appears directly attributable. Regarding liability of the company, Article 37 of the relevant law provides that a company shall be liable for the crimes committed by its representatives, directors, agents, or employees acting in its name on its behalf. Although imprisonment will not apply to the company, it may be subject to a fine of up to QR500,000.

Probation not mandatory

Q: As a senior managerial employee, I received an offer in a company in Qatar. I came to Doha on a business visit visa under an agreement that regular visa will be issued later. To my surprise, on arrival I received a contract wherein I am described as a worker. I accepted it. Then I saw a provision that I will be on probation for six months which was not acceptable to me. Later I received a termination notice. The management states that this is the standard procedure. What are my options on termination of the employment in probation?AWS, DohaA: As per Qatar Labour Laws, probation is not mandatory. The parties to the contract may agree to commence employment without probation. Once agreed, during the period of probation, the employer may terminate the employment contract by three days’ notice. Regarding termination of the contract by the employee, under Article 51 of the Labour Law, the employee may terminate the service contract if the employer or his representative has misled the employee at the time of entering into the service contract as to the terms and conditions of the work. Also, the contract is terminable under this provision if the employer commits a breach of his obligations under the service contract. *Please send your questions by e-mail to: leges@qatar.net.qa (Mobile:55813105)LEGAL SYSTEM IN QATARAs per Article 162, if the buyer retains the right to specify period for delivery of the goods or to determine the port of shipment or notify the name of the vessel, but fails to issue the instruction within a reasonable time, the buyer shall be liable for the additional expenses and for any subsequent damages.In case of sales at the port of destination, the consequences of destruction of the goods after shipment shall be borne by the seller and the contract shall include the conditions that the execution dependent upon the safe arrival of the vessel, or which gives the buyer the choice of accepting the goods or in conformity with the samples delivered. According to Article 165, the contract of carriage is a contract under which the carrier undertakes to transport the goods or passengers to specific place against a fixed charge. A carriage contract shall be made merely by offer and acceptance. In case of goods transport, receipt by the carrier shall be an acceptance of carriage. In case of passenger transport, boarding by the passenger is considered as acceptance unless it proved that the carriage contract was not the intention of passenger. As per Article 168, every claim arising from a contract of carriage for goods or passengers or a contract of agency for carriage shall be statute barred after the lapse of one year. This limitation applies to claim of liability for damage of goods from the agreed date fixed for delivery, and for delay or damage or partial damage of goods from the date of delivery or from the date when the goods were placed at the disposal of the consignee. A party who has committed willful default or gross negligence may not hold to limitations. Any agreement contradictory to the aforementioned provisions is null and void. As per Article 169, contract of carriage of goods is a contract under which the carrier undertakes to transport on an agreed means of transportation to specific place against a fixed charge without damage or destruction. The carriage document shall be issued in two copies, a copy of which shall be signed by the carrier and delivered to the consignor, and the other shall be signed by the consignor and delivered to the carrier.

April 17, 2015 | 08:32 PM