For foreign employers looking to expand their business in Qatar, hiring employees in Qatar can be tricky because of some complicated rules. This is where a Qatar Employer of Record (EOR) can help. 

EOR services take care of onboarding, payroll, termination and ensure you're compliant while carrying out the aforementioned activities. They make it easier for you to set up shop in Qatar, save money, so you can focus on growing your business.

Expanding your team in Qatar can be an attractive prospect, given the country's reputation as one of the most Western-friendly nations in the Gulf. Qatar's thriving industries, particularly in sectors like petrochemicals, engineering, construction, and tourism, offer enticing opportunities for job seekers and businesses alike. To grow your team successfully in Qatar, partner with local experts who understand the unique nuances of the business environment, hiring regulations, and cultural aspects. Collaborating with a Qatar-focused HR and recruitment solution provider can streamline the process, ensuring compliance with local laws and tapping into the abundant talent pool that Qatar has to offer. By leveraging local expertise, you can make the most of the expanding opportunities in this dynamic and Western-friendly nation.

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"Employee misclassification" is a concern in Qatar as well, where workers may be incorrectly labeled as independent contractors instead of regular employees, depriving them of proper employment rights and benefits. Engaging a PEO/EOR in Qatar can help ensure accurate worker classifications, compliance with labor laws, precise payroll processing, and comprehensive benefits administration, allowing businesses to focus on their core operations while adhering to local labor regulations.

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Employment Contract

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Types of Employment Agreements:

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Indefinite Contracts: As per Article 69 of Qatar's employment law, both parties have the right to terminate indefinite or long-term agreements with written notice. A written notice becomes obligatory once the probation period concludes, and neither party is required to specify the reason for termination.

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Termination Without Notice: Article 61 outlines specific conditions under which organizations in Qatar can terminate employment without notice, including the submission of false documents, false nationality or identity, intentional financial harm to the company, sharing of confidential information, and if an employee is found under the influence of drugs or alcohol during working hours.

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Definite Contracts: Under fixed-term contracts, termination requires mutual agreement between the employer and the employee. If the termination relates to serious misconduct, it must occur before the contract's expiration date. In cases where the company seeks termination, and the employee disagrees, the company is obligated to pay the salaries and other benefits for the remaining duration of the contract.

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This employment contract should include essential details, such as:

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• Identification of both parties
• Commencement date (and employment duration for temporary contracts)
• Workplace
• Job description, duties, and responsibilities
• Basic salary, compensation, and benefits
• Working hours
• Total number of holidays
• Notice periods for employment termination
• Probation period
• Reference to collective agreements
• Terms applicable to work conducted abroad

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Working Hours 

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In Qatar, a standard working week typically consists of 48 hours, spread over six days with 8 hours of work per day. However, during the holy month of Ramadan, the working day may be reduced to 6 hours. Fridays are generally observed as a day of rest.

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Overtime

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Any work conducted beyond the standard working week is considered overtime and is subject to regulation through employment contracts or collective agreements. When employees are asked to work overtime or during holidays, there are limits to the number of hours they can be required to work.

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Overtime hours exceeding 48 hours in a week are compensated at an overtime rate, which is generally set at 125% of the employee's regular hourly wage. For overtime work performed during nighttime hours, the overtime rate increases to 150% of the employee's standard rate.

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Minimum Wage

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In Qatar, the minimum monthly wage is set at 1,000 Qatari Riyals. Additionally, employers are required to provide food and housing allowances, with a minimum of 300 QAR for food and 500 QAR for housing if they do not directly provide these benefits to their employees.

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Maternity Leave and Paternity Leave

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In Qatar, female employees are granted 50 days of paid maternity leave, with a requirement to take at least 35 days of leave following the birth of their child. In situations involving a complex birth, an employee has the option to extend maternity leave by an extra 60 days, which would be unpaid, provided they can provide a medical certificate.

To qualify for this maternity benefit, an employee needs to have a minimum of one year of service with their employer.

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Annual leave

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In Qatar, the amount of annual leave an employee is entitled to depends on their length of service.

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Employees have the flexibility to split their annual leave into a maximum of two different periods, subject to their employer's agreement. Any unused leave can be carried forward to the next vacation year with the employer's consent.

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Sick Leave

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Once an employee has completed three months of service with a single employer in Qatar, they become eligible for sick leave benefits. During the initial 14 days of sickness, the employee is entitled to two weeks of paid sick leave, receiving 100% of their salary. Following this period, if the sickness persists, the employee can receive an additional four weeks of paid leave at a rate of 50% of their salary. Any illness beyond this period is not paid, and it's the responsibility of the employer to cover the cost of sick leave.

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Income tax

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Income tax is not imposed on employed individuals' salaries, wages, and allowances.

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Other Taxes and Social Security contribution:

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Employer Payroll Contribution

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Employment Termination and Severance

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Termination Process

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The termination procedure in Qatar is contingent upon the terms outlined in the employment agreement and any applicable collective agreements. It also depends on the type of contract and the specific grounds for termination. Whether initiated by the employer or an employee, the termination of an employment contract necessitates the issuance of a mandatory termination notice to initiate the dismissal process.

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Notice Period

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In Qatar, the length of notice periods depends on the employee's seniority.

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During the probationary period, a one-week notice is required.

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Severance Pay

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End-of-service gratuity in Qatar is calculated based on the length of service.

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Furthermore, non-Qatari nationals must be offered a repatriation flight.

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Probation Periods

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In Qatar, the duration of probation periods can differ according to the terms specified in the employment contract. Nonetheless, it's important to note that probation periods cannot exceed six months.