Key Factors to Consider When Hiring in Qatar:

1. The nature and scope of the job.
2. Whether the position is temporary, permanent, or project-based.
3. The employee’s responsibilities within the organization.
4. Compliance with Qatari labor laws, including the legality of the employment contract.

Companies must ensure that employment contracts adhere to Qatar’s legal framework, as violations can result in fines, penalties, and reputational damage.

Types of Employment Contracts in Qatar

There are four main types of employment contracts in Qatar:

1. Fixed-Term Contract
2. Indefinite (Open-Term) Contract
3. Project-Based Contract
4. Part-Time Contract

1. Fixed-Term Contract

A fixed-term contract is the most commonly used employment contract in Qatar. It is established for a specific period and expires automatically at the end of the term unless renewed.

Key Characteristics:

• Duration: The contract specifies a start and end date. Typically last for up to five years but can be renewed by mutual agreement.
• Probation Period: Employers may include a probation period, not exceeding 6 months (as per Article 35 of the Qatar Labor Law).
• Renewal: Upon expiration, the employer can renew the contract with the employee’s consent.
• Termination: If the employer or employee terminates the contract before its end date without justification, compensation may be required, as per Article 49 of the Labor Law.

2. Indefinite (Open-Term) Contract

An indefinite contract does not have a specified end date and continues until one of the parties chooses to terminate it.

Key Characteristics:

• Job Security: Employees enjoy greater job stability and protection under the Qatar Labor Law.
• Notice Period: As per Article 49, both the employer and employee must provide at least 30 days’ notice before termination if the employment exceeds one year.
• Termination Conditions: Termination without just cause may require the employer to pay compensation.

Common Use Cases:

• Long-term employment arrangements
• Positions where continuity and long-term employee development are vital

Key Elements of a Valid Employment Contract

Under Article 38 of Qatar’s Labour Law, an employment contract must include the following details:

• Employer’s name, address, and business activity
• Employee’s name, nationality, qualifications, and residence
• Contract start and end dates (for fixed-term contracts)
• Job role, responsibilities, and work location
• Agreed wage, pay period, and payment method
• Working hours and leave entitlements
• Any additional conditions agreed upon by the employee and employer

3. Employment of Expats vs. Locals

Expats:

• Must obtain a valid work permit before employment.
• Required to undergo medical fitness tests before employment.
• Can only be employed if there is no Qatari national available for the job (Article 23).
• Work permits for expats have a maximum duration of five years but may be renewed.
• If an expat wants to change employers, they must provide notice and follow specific procedures outlined by the Labour Law.

Locals (Qatari Nationals):

• Given priority in employment over non-Qatari workers (Article 18).
• Employers are required to submit biannual reports to the Department on the number of Qatari employees in the company (Article 19).
• Qatari employees have greater rights in cases of termination and dispute resolution.

4. Probation Periods

As per Article 39 of the Labour Law, an employee can be placed on a probationary period of up to six months. Key points include:

• The employer may terminate the contract during probation with one month’s notice if the employee is found unfit for the job.
• The employee may also leave the role during probation with a one-month notice if they wish to join a new employer.
• If an employee switches to a new employer, the new employer must reimburse the previous employer for recruitment costs, limited to two months of the employee’s basic wage.

What is an Employer of Record (EOR) in Qatar?

An Employer of Record (EOR) is a third-party provider that legally employs workers on behalf of a company. The EOR handles essential HR functions, including payroll, employment contracts, and regulatory compliance. Companies operating in Qatar without a local entity can benefit significantly from EOR services.

Why Use an EOR in Qatar?

• No Need for a Local Entity: Avoid the time and cost of establishing a local presence.
• Compliant Hiring: EOR ensures compliance with Qatari labor laws, including contributions to social security and end-of-service gratuity (as per Article 54).
• Payroll Management: The EOR manages payroll, ensuring employees are paid in accordance with Qatar’s Wage Protection System (WPS).

Benefits of Using EOR Services in Qatar

1. Local Compliance: Full compliance with Qatar’s Labor Law, WPS, and social security obligations.
2. Faster Onboarding: Speedy hiring process without delays caused by company registration.
3. Cost-Effective Expansion: Avoids the need to set up a local entity.
4. Risk Mitigation: Reduces the risk of non-compliance, labor disputes, and penalties.

How Globaine PEO Supports Your Business in Qatar

Globaine PEO provides a hassle-free EOR solution for companies looking to hire, onboard, and manage employees in Qatar.

Services Include:

• Employment Contracts: Drafting compliant contracts tailored to Qatar’s labor laws.
• Payroll Processing: Accurate and timely payroll administration.
• End-of-Service Gratuity: Calculation of gratuity payments under Article 54 of the Qatar Labor Law.
• Local Compliance: Full compliance with Qatar’s WPS system, social security, and labor law obligations.

Why Choose Globaine PEO?

• Local expertise in Qatar’s employment laws.
• Onboarding in days, not months.
• Transparent pricing and efficient payroll processes.