QUESTION: We transferred the visa of an engineer, whom we had recruited, to another company on verbal agreement that it would re-issue an NOC when they don’t need his service. But the other company now plans to terminate him and is not willing to transfer his visa, upholding the confidentiality reasons. The employer has also not paid five months’ salary to him and a case is pending with the Qatar civil court and the expert report is favourable to the employee. Can he get visa transfer without consent from the current employer?
NH, Doha
ANSWER: Qatar’s employment or sponsorship laws don’t categorise expatriate employees into local and/or overseas recruits. As per prevailing laws and regulations, sponsorship transfer or grant of NOC is at the sole discretion of the employer subject to appropriate approvals. Accordingly, transfer of sponsorship can be initiated only through a written agreement between the ex-employer and the new employer.
Since there is a favourable case against the employer is in progress chances are high for a transfer if the employee approaches human rights authorities.
On merit, human rights authorities will generally assist for the transfer of sponsorship even without the approval of the employer if the employee obtains a court verdict for labour entitlements.
Share of profit or loss in firms
Q: How is the share of profits calculated in a limited liability company when it is not mentioned in the incorporation document? We have agreed with the local partner for no profits/no losses but 3% of the turnover.
ST, Doha
A: According to Article 14 of the Commercial Companies Law No 11 of 2015, if the company’s incorporation document did not determine the partner’s share of profit or loss, it will be proportionate to his share in its capital.
If the contract is limited to determining the partner’s share of profit, his share of loss will be equivalent to that of profit, so is the case if the contract is limited to determining his share of loss.
Article 13 stipulates that the company’s incorporation contract shall not include a provision excluding any partner from his rights in profits, or absolving him from the loss otherwise such contract shall be void.
However, it may be stipulated to exempt the partner who only offered his work from sharing the loss.
Gratuity calculation
Q: I am an employee of a catering services company where I have been working for almost eight years. My company doesn’t give end-of-service gratuity as per Qatari labour laws which, I think, should be based on 28 days for every month of service after more than five years of employment. As per my colleagues who ended their contract after more than seven years, the end-of-service has been calculated only for 21 days.
PQ, 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.
However, the employer and employee may agree a higher rate than the stipulated minimum of three weeks. Accordingly, unless otherwise a higher rate is agreed; irrespective number of years of service, gratuity will be calculated at the rate of 21 days of basic salary every year and prorate.
Letter on authority
Q: We have made a contract with a company for procurement and a contract has been signed by a representative. After signing and transfer of payment we have been asking for an authority letter for the signatory. The letter has not been issued so far. What are the implications if there is no letter or if the representative’s authority is limited.
DTC, Doha
A: According to Article 81 of the Civil Law, a contract may be concluded by a representative unless the law requires it to be concluded by the principal.
When, however, the representative is appointed by an agreement who acted in accordance with his principal’s precise instructions, the principal cannot plead the ignorance of his representative of circumstances which the principal knew or should necessarily have known, thereupon, the principal’s vices of consent should be reckoned.
However, Article 87 stipulates that if a person concludes a contract on behalf of another person without being his representative or exceeded the limits of his authority, the contract shall have no effect upon the principal unless he issued a declaration to him according to the law.
In case no declaration of disposal was issued, the other contracting party may claim against the person who acted as a representative or exceeded the limits of the authority without an acceptable reason, a compensation for damages caused to him unless he was aware or should necessarily have known that there was no representation or exceeding limits thereof.
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LEGAL SYSTEM IN QATAR
According to Article 747, the creditors who have a right to participate in the conciliation may raise objections. The objection must be supported with reasons, otherwise it shall be deemed null and void. Such objection shall be notified to the bankrupt and the receiver. Any objection shall be raised within ten days from the date of signing the minutes of the conciliation.
If the objection to the conciliation is rejected, the court may impose a fine not less than QR1,000 and not exceeding QR5,000, if it is established that the objector has deliberately delayed the conciliation by such objection. The court shall, upon ratification of the composition, appoint one or more supervisors from among the creditors to supervise the enforcement of the conciliation terms.
As per Article 751, rati?cation of the conciliation shall be applied to all the creditors constituting the body of creditors including those who have not participated in the conciliation procedures or agreed to it, even if their debts are not veri?ed.
Guarantors or those jointly liable with debtor for debts prior to the adjudication of the bankruptcy shall not bene?t from the conciliation.
The receiver shall submit to the bankrupt ?nal accounts and such accounts shall be discussed in the presence of the adjudicator. The task of the receiver shall terminate and the bankrupt shall take delivery of his properties, books and documents from the receiver against the issue of receipt.
The receiver shall not be responsible, if the bankrupt fails to take delivery of such items within one year from the date of rati?cation of the ?nal account. The adjudicator shall draw up minutes of all that is stated above and shall refer any dispute to the court for a decision.
According to Article 754, the conciliation shall be nullified, if, after ratification, the bankrupt is convicted for offence of fraudulent bankruptcy.
Likewise, the conciliation shall be nulli?ed if after rati?cation it appears that the bankrupt has committed fraud arising from concealment of assets, or exaggeration of debts or alleged false debts.
In such case, an application for nulli?cation of the conciliation must be made within six months from the date of which the fraud is discovered. In all cases, the application for nulli?cation of the conciliation shall be instituted within three years from the date of the judgment ratifying the conciliation was issued. The nulli?cation of the conciliation shall release the surety who guaranteed enforcement of the conciliation terms.
If the investigation is initiated against the bankrupt for the offence of fraudulent bankruptcy after ratification of the conciliation, or a penal action for such offence has been instituted against him after such rati?cation, the court which rati?ed the conciliation may, pursuant to the request of the Public Prosecution or any interested party, order such measures as it deems necessary to safeguard the assets of the debtor.
Such measures shall be revoked by rule of the law if it is decided to discontinue the investigation, or that criminal case is groundless or where the bankrupt is acquitted.
As per Article 756, if the bankrupt fails to execute the conciliation terms, rescission thereof, based on the application of creditors, may be claimed from the court which has ratified it.
Rescission of the conciliation shall not lead to the release of liability of the guarantor who guarantees enforcement of the conciliation terms. Such guarantor shall be summoned to attend the session in which the application for rescission of the conciliation is heard.
