Qatar

Qatar PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Qatar to companies attempting to enter the Qatari market or hire local/expat employees in this location.

The traditional approach demands establishing a subsidiary in Qatar.  However, our offer allows you to start the operations in Qatar within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain total operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Qatar fast facts

Population, million: 2
Land area:  11,581 km²
Capital: Doha
Local currency: Riyal (QAR

GDP per capita:$ 183.47
GDP in currency:$ 62021.10

Qatar, independent emirate on the west coast of the Persian Gulf. Occupying a small desert peninsula that extends northward from the larger Arabian Peninsula, it has been continuously but sparsely inhabited since prehistoric times. Following the rise of Islam, the region became subject to the Islamic caliphate; it later was ruled by a number of local and foreign dynasties before falling under the control of the Āl Thānī (Thānī dynasty) in the 19th century. The Āl Thānī sought British patronage against competing tribal groups and against the Ottoman Empire—which occupied the country in the late 19th and early 20th centuries—and in exchange the United Kingdom controlled Qatar’s foreign policy until the latter’s independence in 1971. Thereafter, the monarchy continued to nurture close ties with Western powers as a central pillar of its national security. Qatar has one of the world’s largest reserves of petroleum and natural gas and employs large numbers of foreign workers in its production process. Because of its oil wealth, the country’s residents enjoy a high standard of living and a well-established system of social service

Hiring, Negotiating and Doing Business in Qatar

Necessity of written employment contract

All contracts and relevant documents must be written in Arabic as specified in the Commercial Companies Law No. 5 (2002). While the employer may offer copies in other languages, it is the Arabic version that will take precedence in the event of any dispute. Article 38 of Labor Law No. 14 of the year 2004 mandates that the contract must be written and should consist of three copies: one for each party and the third for the Labour Ministry.

Different forms of engagement: employment, contracting, work with private entrepreneur

The rules governing the employment of workers in Qatar are governed by law No.14 of 2004 of the Labour Law, administered by the Labour Department of the Ministry of Labour and Social Affairs. For persons intending to work in Qatar, a permanent residency visa and a work permit is required to legally work in Qatar. The employer acts as the local sponsor for the employee and arranges the necessary appointments to obtain both the visa and permit.

Qatar Employment Contract

Types of employment agreements

In accordance with the Qatar Labour Law, where an employee’s employment is for an indefinite term, employment can be terminated in one of two ways, with notice and the payment of EOSB or without notice and the payment of EOSB

  • Indefinite contract
    Article 49 provides that the employment of an employee if he is employed for an indefinite or unlimited term and subject to the successful completion of the probationary period, may be terminated by either the employer or the employee providing written notice. There is no requirement for the party serving notice to provide a reason for the termination.
  • Termination without notice
    Article 61 entitles an employer to terminate an employee’s employment with immediate effect without notice or the payment of EOSB if the employee commits an act of gross misconduct. Examples include; assuming a false identity or nationality, submitting false documents, committing an act which causes gross financial loss to the employer, disclosure of confidential information, the employee is found drunk or under the influence of drugs during working hours etc.
  • Definite contract
    If an employee is employed for a definite or fixed-term, both the employer and the employee must mutually agree to terminate the employee’s employment before the contract term has expired if there is no specific reason for such termination, e.g. gross misconduct. If an employer seeks to terminate employment and an employee does not agree to the same the employer may have to pay the employee his wages and other benefits in full for the remainder of the unexpired term.

Qatar working hours

The Qatar Labor Law states that one work week is equivalent to a maximum of six (6) business days, with a day not extending beyond eight (8) hours of work. The exception to this is during Ramadan wherein hours are shortened to six (6) hours per day.

The work week is a maximum of 48 hours per week with a maximum of eight hours per day excluding lunch break; during Ramadan this is reduced to 36 hours per week and six hours per day with one interval or more ranging from one to three hours for prayer, rest, and meals. Workers shall not work more than five consecutive hours. Friday is the weekly rest day for all laborers except shift workers; those required to work are entitled to a day off as compensated time and an additional 50 percent of the basic wage. During the especially hot summer days, the Labour Ministry may prohibit outside work altogether or require the adjustment of working hours into the night.

Overtime

The worker whose overtime fall 9 pm to 6 am shall receive the regular pay plus an additional 50% on their normal wage, however, the worker who works in the shift will not entitle.

The provision of chapter 40 of the Qatar labor law does not apply the overtime for the profession who are:

  • Physician
  • Engineer
  • High administrative position
  • and supervisory positions
  • Marine ships crews
  • Port workers
  • other offshore workers

Vacation leave in Qatar

  • Leaves for Muslims – this is a maximum 2-week leave without pay to fulfill the pilgrimage duty, granted to the Muslim workers chosen by the employer, usually prioritizing those who have served the company for longer years.
  • Additional 3 working days – to be determined by the employer
  • 3 weeks annual leave – given to those employees who are employed for atleast 1 year but less than 5 years.
  • 4 weeks annual leave – given to those employees who are employed for more than 5 years.
  • An employee is also entitled to a leave equivalent to a fraction of the year considering his/her length of service.

Qatar Maternity Leave

Female foreign nationals employed in Qatar are entitled by law to 50 days’ paid maternity leave, provided they have worked for the company for a full year. The Labour Law states that up to 15 days of the leave can be taken before the birth, but at least 35 days must be taken after the birth before returning to work. Any extended time required can be taken as unpaid leave, or out of annual leave, but agreement should be reached with the employer.

These are the legal requirements, but some companies may offer longer maternity leave options. A medical certificate from the woman’s doctor stating the expected date of delivery must be supplied to the employer to validate the leave.

New mothers are also entitled to an hour’s ‘nursing time’ each working day for the first year of the baby’s life, which can be taken at the time of the mother’s choosing. Employers are not allowed to terminate the employment of women while they are on maternity leave.

Qatar Severance Laws

Article 49 of the Labour Law provides that an indefinite or unlimited term contract may be terminated by either the employer or the employee providing written notice at any time. There is no requirement for the party serving notice to provide a reason for the termination.

Where an employee is paid monthly (or annually), notice must be at least one month if the period of service with the same employer is less than five years, and two months for employees who have been employed for more than five years, save where the employment contract provides for a longer notice period or where payment is more regular than monthly and different periods apply.

Qatar Tax

Personal income tax – 0%

Social security contributions due by an employer and an employer:

Insured person: 5% of gross monthly earnings.

There are no minimum or maximum earnings used to calculate contributions.

Self-employed person: Not applicable.

Employer: 10% of gross monthly payroll.

There are no minimum or maximum earnings used to calculate contributions.

Government: Finances any deficit and covers administrative costs; contributes as an employer.

Health Insurance Benefits in Qatar

Sick Leave – this is given only to those who are employed for more than three months. Employees must note that in order for the sick leaves to be approved, medical certificate and approval from the employer must be obtained.

  • If the employee used his/her sick leaves for the first 2 weeks, he/she is entitled to full payment equivalent to the days taken.
  • If the employee used his/her sick leaves for the next 4 weeks, he/she is entitled to half payment equivalent to the days taken.
  • If the leave is further extended up to 6 weeks, the employee won’t be paid of any amount unless he/she resumes the work, resigns, or be terminated.
  • If the leave is further extended up to 14 weeks, the employee’s service will be terminated and he/she should submit a report from the doctor that he/she couldn’t work during the period covered.
  • In case the employee resigns or dies before the end of the 6-week sick leave, he/she is entitled the balance equivalent to the days not taken.

Additional Benefits inQatar

The following are some of the aforementioned minimum standards in which employers are committed according to Article 4 of Labor Law No. 14 of the year 2004.

Employees must only carry out the work specified in the contract and may opt-out of any work-related activities that can reasonably put them at risk. Employees also have the right to terminate contracts in writing for any reason.

General market practice benefits/additional allowances

Employees accept job offers not only upon the salary but also on the benefits that accompany many positions. Employee benefits are a “job perk” that may convince a potential employee to join a specific company. Evaluate what benefits are valuable to you when looking for a package.

To attract expat employees companies in Doha commonly offer an increase in salary.

Qatar Holidays

  • Al-Fitr Eid (After Ramadan) 3 days
  • Al-Adha Eid (Pilgrimage period) 3 days
  • Independence day 1 day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

FAQ Qatar

  • Working hours in Qatar

    The Qatar Labor Law states that one work week is equivalent to a maximum of six (6) business days, with a day not extending beyond eight (8) hours of work. The exception to this is during Ramadan wherein hours are shortened to six (6) hours per day.

  • What are the main holidays in Qatar?

    • Al-Fitr Eid (After Ramadan) 3 days
    • Al-Adha Eid (Pilgrimage period) 3 days
    • Independence day 1 day
  • What are payroll taxes in Qatar?

    Personal income tax – 0% Social security contributions due by an employer and an employer: Insured person: 5% of gross monthly earnings. There are no minimum or maximum earnings used to calculate contributions. Self-employed person: Not applicable. Employer: 10% of gross monthly payroll.

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