Qatar Labour Law: Update on Labour Bans in Qatar​

Party Terminating

Circumstances of termination

Can employee transfer without a NOC and will any ban be imposed?

Employee

Employee is employed on a fixed term contract, employee resigns (without fault of the employer).

Resignation of  the employee employed on a fixed-term employment contract in Qatar:

If the employee is employed on a fixed-term employment contract for the duration of the agreed fixed term, the employee will continue to require a NOC in order to transfer his employment; however 

once the agreed fixed term expires, with effect from 13 December 2016, the employee may transfer to another employer in Qatar without having to obtain a NOC from his former employer (the employee still needs to notify his former employer and abide by any minimum notice provisions). We understand that the Expatriates’ Law applies with retrospective effect, therefore, the original date of employment will apply (i.e. the term does not restart on 13 December 2016).

In situation (a) above, if the former employer refuses to provide the NOC, we understand that the employee will be unable to work for another employer in Qatar until the expiry of the fixed term agreed with his/her original employer. The only exception to this is where it would be in the public interest to allow the individual to transfer without having to wait (in which case the authorities have the power to approve the transfer). What is meant by “public interest” in this context remains to be seen, and is perhaps a matter that will be discussed further in the Executive Regulations. 

Employee

Employee is employed on an open/indefinite term contract, employee resigns (without fault of the employer).

Resignation of the employee employed on an unlimited contract in Qatar:

If the employee is employed on an unlimited contract, then the employee has less than five years’ continuous service with his/her former employer as at the date of termination, the employee will continue to require a NOC in order to transfer his/her employment; however 

if the employee has more than five years’ continuous service with his former employer as at the date of termination, with effect from 13 December 2016, the employee will be able to transfer his/her employment to a new employer in Qatar without having to obtain a NOC from his/her former employer (the employee still needs to notify his/her former employer and abide by any minimum notice provisions). We understand that the Expatriates’ Law applies with retrospective effect, therefore, the original date of employment will apply for the purposes of calculating the five years’ continuous service period (i.e. continuous service does not restart on 13 December 2016, the date on which the Expatriates’ Law took effect). 

In situation (a) above, if the former employer refuses to provide the NOC, we understand that the employee will be unable to work for another employer in Qatar until the date on which the employee would have completed five years’ continuous service with his original employer. The only exception to this is where it would be in the public interest to allow the individual to transfer without having to wait (in which case the authorities have the power to approve the transfer). What is meant by “public interest” in this context remains to be seen, and is perhaps a matter that will be discussed further in the Executive Regulations.

Employee

Employee resigns due to his employer breaching a fundamental term of the employment contract (i.e. employer fault).

Employee resignation due to breaching a fundamental term by the employer:​

If the employee resigns (either part way through his/her fixed term contract, or before five years’ continuous service in the case of an indefinite contract), then where the resignation is due to the employer breaching a fundamental term of the employment contract (which must be proven), the employee will be permitted to transfer his/her employment without the need for a NOC from his/her former employer. The employee must lodge a complaint and the employer’s breach must be proven before the transfer will be approved. 

The Expatriates’ Law does not state what type of breach would be sufficient to prove that it was a fundamental breach, however, under the Qatari Labour Law (Law No. 14 of 2004, as amended from time to time), an employee has the right to resign with immediate effect and remain entitled to end of service gratuity (if applicable) in the following cases: 

if the employer commits a breach of its obligations under the employment contract or the provisions of the Labour Law in Qatar;

if the employer or its responsible manager commits a physical assault or immoral act upon the employee or any of his/her family members;

if the employer or its representative has misled the employee at any time in relation to the entering into of the employment contract and/or as to the terms and conditions of the work; and/or

if continuance with the work endangers the safety and health of the employee provided that the employer is aware of the danger and does not take the necessary steps to remove it.

The above scenarios (under the Qatar Labour Law) may provide some guidance regarding the seriousness of the breach required under the Expatriates’ Law in order to prove that the employer has breached a fundamental term of the employment contract, however, this is perhaps a matter that will be clarified by the Executive Regulations.

Employer

Dismissal for gross misconduct (i.e. for one of the reasons set out in Article 61 of the Qatar Labour Law).

If the employee is guilty of gross misconduct and is summarily dismissed by his/her employer, the employee will not be able to transfer his/her employment to any other employer in Qatar. In fact, in accordance with Article 26 of the Expatriates’ Law, the individual will be banned from returning to Qatar for a period of four years.

Employer

Dismissal for any reason other than gross misconduct (e.g. redundancy, poor performance etc).

​Termination of the employee due to redundancy, poor performance etc

We understand that where the employer is the party terminating the employment contract, and termination is not due to gross misconduct on the part of the employee, the employee may transfer his/her employment to a new employer in Qatar without the need for a NOC from his former employer. It seems that when the employer is the party terminating the employment, the employee is free to seek suitable alternative employment, however, this matter is not expressly contained in the Expatriates’ Law and the exact position cannot be confirmed until the Executive Regulations are released. 

Relevantly, if the employee has agreed to be bound by a non-compete provision, then provided that the restraint is reasonable (as outlined above) and enforceable, the employer may rely on the provision to prevent the transfer of the employee’s employment to a competitor in Qatar. The mere existence of the restraint will not act as a blanket ban, rather the onus will be on the employer to prove that the new employer is a competing entity, and that the role that the employee would be performing would amount to a breach of the restraint agreed between the original employer and the outgoing employee.

Change of circumstances

Death of employer (if employer is an individual) or company ceases to exist (if employer is a corporate entity)

If:

the employer is an individual and the employer dies; or

if employer is a corporate entity and the company ceases to exist,

the employee’s employment will terminate due to a “change of circumstances” and the employee may transfer to a new employer in Qatar without the need for a NOC from his former employer.