By Nizar Kochery/Doha


QUESTION: Is there a law in Qatar to declare workers as redundant? Our company is not paying us salary now, stating that workers are on lay-off on financial reasons and there are no ongoing projects with our company. As per the management, if there is no work, there is no pay for employees. Can the company refuse payment of salary on this ground? We have approached the Labour Department, claiming our salary. Is there any chance of favourable decision? Can the company terminate employees unreasonably?
GJ, Doha

ANSWER: There are no provisions in the Labour Law for laying-off workers in situations of redundancy.
According to Article 44, 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 the advantages accruing therefrom.
The employer shall undertake to enable the worker to perform the work and to provide him with all things necessary for worker to perform work. Regarding termination, Labour Law does not require an employer to give any reason for the termination of an employment contract.

Gratuity payment
Q: I am an IT executive assistant working with a construction company for the past eight years. I would like to know how gratuity and end-of-service benefits are calculated as per Qatar labour law on resignation? Will be they the same if someone is terminated by the company? How can I return to Qatar without any problem after resigning from the job? Can I request my employer for a no-objection certificate?
TA, Doha

A: Article 54 of the Law No.14 of 2004 - Qatar 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 pay shall be calculated minimum at the rate of three weeks’ basic salary for each year of service.
Both parties are legally permitted to terminate the contract by notifying the other. Regarding entitlement of gratuity, who initiates the severance is not relevant. Grant of no objection certificate will be at the discretion of the employer.
As per law a new work visa will not be issued for a period of two years from the date of departure unless otherwise supported by the NOC provided by the current employer.

Not covered by labour laws
Q: Is any category of workers not covered by Qatar’s Labour Laws? A Nepali friend of mine has been working as a driver in his sponsor’s house for the past two years. The sponsor used to pay his salary regularly until January this year when his car was damaged by a third person and after that, he has stopped paying the driver his salary. The driver wants to leave the job after getting his dues.
DF, Doha

A: A domestic driver cannot approach the Labour Department as the persons employed in domestic employment such as drivers, nurses, cooks, gardeners and similar workers are not covered under Qatar Labour Laws. Seek the Nepal embassy’s assistance to resolve the problems through its intervention.
Article 3 of the Qatar Labour Law excludes various individuals and entities, including but not limited to, individuals employed by ministries and other governmental organisations, public institutions and companies which have been established by Qatar Petroleum and domestic and casual employees from its provisions and regulation.
The employment affairs of workers of the ministries and other governmental organs, public institutions, Corps and companies which are established by Qatar Petroleum by itself or with others, are regulated by special laws.
Currently there is no law in practice regulating the affairs of domestic workers.

Company meeting
Q: Is there a statutory requirement for conducting the annual meeting of a limited liability company? What are the minimum businesses to be included in the meeting?
TIG, Doha

A: According to Article 248 of the Commercial Companies Law, a company with limited liability shall have a general assembly meeting consisting of all shareholders through an invitation from the directors/managers at least once a year during the four months following the end of the financial year to transact the following agenda:
1) A report of the directors/managers on the business of the company for that year and its financial position;
2) A report of the company’s auditors;
3) Approval of the balance sheet and profit and loss account;
4) The election of auditors for the next year and the fixing of such auditors’ responsibilities and remuneration;
5) The release of the directors/managers from liability for performance of their duties; and
6) Any other matters the shareholders may agree to consider.

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LEGAL SYSTEM IN QATAR
Agency is a contract whereby the agent is obliged to perform certain acts, for and on behalf of the principal. According to Article 273, commercial agency services shall be performed for a consideration, unless otherwise agreed and the agent must exercise due diligence of an ordinary merchant in performing the commercial agency. If the agency agreement is silent on the consideration, it shall be determined according to the prevailing custom or determined by the court.
An agent may not delegate his authority or duty in whole or in part except with the authority and consent of the principal. The agent shall be held liable to compensate for any loss, which the principal may suffer in consequence of the agent’s failure to exercise his authority in person.
As per Article 277, the agent shall not be obliged to insure the goods in his possession for the account of the principal, unless the principal instructed to do so, necessitated by the nature of goods, or required by the custom. The agent shall not include himself as a second party to the transaction unless authorized by the principal and in such cases; the agent shall not be entitled for fee.
The agent shall be liable for damage or loss sustained to the goods in his possession for account of the principal, unless such damage or loss arises due to force majeure or latent defect.
According to Article 280, if the goods taken for delivery on behalf of the principal has sustained damage in transit, the agent shall take necessary measures to preserve and to prevent further deterioration. The agent shall provide the principal with the necessary information regarding agency activities and statement of accounts. If the statement of accounts deliberately includes false information or fails to disclose substantial data, the principal have the right to claim compensation.
As per Article 282, the agent have priority right over the goods sent, deposited, or delivered. Such priority shall include the agent’s fee and all amount payable to the agent. The agent’s priority right will be transferred to the sale price, if the goods have been sold. The agent shall not have a priority right over goods sent, deposited, or delivered, unless goods remain in agent’s possession.
The agent’s priority right has priority over all other rights, except for judicial costs, legitimate costs and taxes, charges and other rights as prescribed in the laws in force. According to Article 287, the commercial agency shall end with the completion of the work under agency or on expiry of the period speci?ed for the agency. It shall also end by the death of the principal or agent or the loss of legal competence or the bankruptcy of the agent.