Employment And Labour Law in Qatar
Qatar’s primary legislation governing employment relationships in the private sector is Law No. 14 of 2004 on the Promulgation of the Labour Law and its subsequent amendments (the “Qatar Labour Law”), applicable to companies registered on the mainland under the Ministry of Commerce and Industry (“MOCI”). Entities incorporated within the Qatar Financial Centre (“QFC”) are governed by the QFC Employment Regulations, which operate as a distinct framework within the QFC’s independent legal system. The employment laws aim to regulate the relationship between employers and employees, ensure the protection of workers’ rights, and create a fair and attractive working environment. In recent years, Qatar has undertaken significant labour reforms introducing sweeping changes to its employment framework that employers and employees alike must be aware of.
Employment Contracts
Under the Qatar Labour Law, employment contracts in the private sector may be for a fixed term or an indefinite term. Where an employee continues to work beyond the expiry of a fixed-term contract without a new agreement being executed, the contract is deemed to have been converted to an indefinite-term contract. All contracts must be in writing, and a copy must be provided to the employee prior to or upon commencement of employment.
End of Service Gratuity
Employees who have completed at least one year of continuous service are entitled to an end of service gratuity upon termination of employment. The gratuity is calculated at a rate of three weeks’ basic wage for each year of service. It is important to note that gratuity is calculated on the basis of the employee’s basic wage and does not include allowances. Entitlement to gratuity may be forfeited in certain circumstances, including where an employee is dismissed for cause under the grounds specified in the Qatar Labour Law.
Probationary Period
An employer may subject a newly engaged employee to a probationary period not exceeding six months. An employee may not be placed on probation more than once with the same employer. During the probationary period, employers must provide at least one month’s written notice to terminate. Employees resigning must provide one month’s notice (if staying in Qatar) or up to two months’ notice (if leaving Qatar).
Non-Competition
Employers have the right to include a non-competition clause in an employment contract, provided that the clause is limited in terms of time (up to a maximum of one year), geographic scope, and nature of work, and that it does not cause undue harm to the employee.
Leave Entitlements
The Qatar Labour Law provides for a range of statutory leave entitlements, including annual leave of not less than three weeks per year for employees with less than five years of service and four weeks thereafter, paid sick leave with full pay for the first two weeks and half pay for the following four weeks, fifty days of fully paid maternity leave for eligible female employees, and unpaid Hajj leave of up to twenty days once during the period of service for Muslim employees. While bereavement and paternity leave are not statutory entitlements under the Labour Law, both are widely observed in practice and employers are encouraged to formalise these in employment contracts or workplace policies.
Employment Policies and Handbooks
Employers with ten or more employees are required under the Qatar Labour Law to maintain internal work regulations setting out the rules governing the employment relationship, disciplinary procedures, and employees’ code of conduct. These regulations must be approved by the Ministry of Labour and posted in a prominent location in the workplace.
Key Labour Reforms
Qatar has introduced a number of landmark labour reforms in recent years that employers must be aware of, including the abolition of the No Objection Certificate (“NOC”) requirement, allowing employees to change jobs without employer consent subject to notice obligations; the introduction of a non-discriminatory minimum wage applicable to all workers regardless of nationality; the establishment of the Workers’ Support and Insurance Fund; and enhanced wage protection requirements under the Wage Protection System (“WPS”).
How MBG Can Assist ?
At MBG, we can assist you with the drafting and revision of employment contracts, employment handbooks, codes of conduct, internal workplace policies, and all other compliance requirements in accordance with the Qatar Labour Law, as well as the QFC Employment Regulations. We advise both employers and employees on their respective rights and obligations, and advise clients in relation to any employment disputes.
