Hiring Talent And Managing Payroll In Qatar

Agreements

• The employment contract in Qatar must be in writing and certified by the MADLSA.
• It should be written in Arabic and another language (such as English) that the parties understand.
• The contract should be issued in three copies: one for each party and one to be deposited with the MADLSA.
• The contract must contain the employer's name and location, and the worker's name, qualifications, nationality, profession, and place of residence.
• The contract should specify the date of signing and the start of work, the job description, and the workplace.
• If the contract is for a fixed term, the duration should be specified.
• The agreed salary, benefits (including accommodation, transportation, and food), and payment details should be included.
• The probation period should also be mentioned in the contract.

Onboarding Process

• The onboarding process for new employees includes several steps.
• It begins with the issuance of an offer letter and employment contract.
• Verification and documentation of the employee's details are also conducted.
• The new employee undergoes orientation and training to familiarize themselves with the company.
• They are introduced to their team and other stakeholders.
• The company provides them with the necessary tools and resources to perform their job.
• The new employee's performance is monitored and feedback is provided.
• Ongoing support is provided to help the employee succeed in their role.

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• In Qatar, employers are legally required to provide their employees with health insurance coverage, which includes medical care, hospitalization, and medication.
• The scope of the coverage and the premium amount depends on the type of plan provided by the employer.
• Additionally, some employers may offer additional health benefits such as dental and vision insurance.

Working hours and overtime

• Work hours: In Qatar, the standard working hours are 8 hours per day and 48 hours per week, with Friday as the weekly day off. During Ramadan, working hours are reduced to 6 hours per day or 36 hours per week.
• Break: In Qatar, employees are entitled to a break of not less than one hour after five consecutive hours of work. This break is usually unpaid unless otherwise agreed upon between the employer and employee.
• Overtime: Overtime work is permitted, but the maximum overtime work hours should not exceed 2 hours per day or 12 hours per week. Overtime work should be paid at a rate of at least 125% of the basic hourly wage.

Social Security

• Contributions are calculated based on the basic salary plus social and housing allowance, capped at 100,000 QAR.
• The contribution rate is 21%, with 7% deducted from the employee's salary and 14% paid by the employer.
• Any housing allowance up to 6,000 QAR counts towards pension contribution.

Taxes for Employees

• Pension- 7%
• Individuals in Qatar, whether ex-pats or Qatari nationals are not supposed to pay income tax on their salaries, wages, or allowances.
• However, those who participate in commercial activities for profit are required to pay taxes. This includes self-employed workers in the country.

Termination

• Article 49 of the Labour Law in Qatar allows for the termination of an indefinite or unlimited contract by either the employer or the employee with written notice, without giving a reason.
• Notice periods vary based on the length of employment, and immediate termination without notice or end-of-service gratuity is allowed for employees who commit gross misconduct, such as falsifying documents, causing financial loss to the employer, or being intoxicated or under the influence of drugs during working hours.

Probation

• According to Qatar's Labor Law, an employer is allowed to have a maximum of 6 months probation period for an employee.
• During this, the employer can terminate the employment if the employee is deemed unfit for the job, with a notice of three days in writing.

Severance Pay

• In Qatar, severance pay is known as end-of-service gratuity (EOSG), which is a lump-sum payment made to an employee at the end of their employment contract.
• The amount of EOSG depends on the length of the employee's service, with longer periods of service resulting in a higher payment.
• The Labour Law requires employers to pay EOSG to employees who have completed at least one year of continuous service.
• Employers must also pay EOSG to employees whose employment is terminated during the probationary period unless the termination is due to gross misconduct.

Employees or Contractors

• Under the Qatar Labour Law, misclassifying an employee as a contractor or vice versa can result in penalties such as fines and other legal liabilities
• Employers are required to properly classify their employees according to their job responsibilities, working hours, and other factors to avoid such penalties.

Final Words