New Conditions Governing Non-Compete Clauses
The new law amends the second paragraph of Article 43 of the Labour Law governing post-employment non-compete clauses. While the amended provision remains largely consistent with the previous law, it expands the scope of non-compete clauses by removing the previous law’s specific geographic and occupational limitations, and instead imposes a maximum duration of two years in all cases involving competition with the employer. This may allow employers to rely on more broadly worded non-compete clauses in employment contracts to restrict workers from transferring to competing employers, although the practical effect of this change remains to be seen. The new law also introduces a requirement for approval by the competent department of the Ministry of Labour before such clauses may be enforced, and provides that any non-compete clause will be void where the employment contract is terminated during the probation period. The maximum duration of a non-compete restriction remains unchanged at two years. While the amended provision introduces an administrative approval mechanism, it is not yet clear how the competent department will assess the scope or reasonableness of non-compete clauses in practice.
Regulation of Recruitment Offices
Amendment of Article 36 of the Labour Law grants the Ministry of Labour, rather than the Council of Ministers, direct authority to prescribe the licensing procedures, conditions, operational rules, and administrative penalties applicable to recruitment offices that “recruit migrant workers from abroad on behalf of third parties.”
Individual Dispute Settlement Procedure
The new law introduces two new provisions, Articles 115 bis and 115 bis (4), setting out a new procedure for resolving individual labour disputes, establishing a mandatory conciliation before the case reaches the Labour Dispute Settlement Committee (the official judicial body responsible for hearing and ruling on employment disputes). Under the new framework, it is mandatory for workers and employers to first refer disputes arising under the Labour Law or an employment contract to the competent department of the Ministry of Labour for amicable settlement. The Ministry must attempt to resolve the dispute within seven days and communicate the outcome to the parties within the following seven days. Where a settlement is reached, it is recorded in writing, approved by the Ministry, and has the force of an executory instrument.
If the dispute is not resolved within the prescribed timeframe, or if either party rejects the proposed settlement or fails to respond, the Ministry must refer the case to the Labour Dispute Settlement Committee within three working days. The amendments also introduce defined timelines for how the Committee handles disputes, suspend the statutory limitation period while the matter is under review by the Ministry, confirm that the Committee’s decisions are enforceable as executory instruments, and allow proceedings to be conducted online, provided the identity of the parties or witnesses is verified.
With this amendment, Qatar follows other countries in mandatorily requiring or encouraging workers to first approach the relevant authorities to seek an amicable settlement before the matter is referred to labour courts.
Additional Restrictions on Workers’ Strikes
Article 120 on the right to strike has been amended to add further restrictions. It stipulates that workers may engage in a peaceful strike if the employer breaches obligations established under the employment contract or under the provisions of the law, provided that amicable settlement, conciliation, or arbitration between the parties and the employer has become impossible in accordance with the provisions of this law. The new law also introduces the following new conditions:
- Workers must now notify the employer and the Ministry in writing of the strike, including the reasons, demands, and duration.
- The strike location is now restricted to the workplace or the workers’ place of residence.
- The strike is limited to a maximum duration of six working days.
- The strike must be suspended once collective labour dispute settlement procedures begin.
- Employers may, with Ministry approval, hire temporary replacement workers during strikes.
- The duration of the strike is explicitly treated as unpaid leave for workers.
As in the previous regulations, the amended provision prohibits labour strikes in ‘vital sectors’ such as petroleum and gas and related industries, electricity and water, ports, airports, transport, and hospitals. However, the new law also adds that ‘other facilities of a vital nature designated by ministerial decision’ may also be subject to strike prohibition. As per the new amendment, workers who strike in vital sectors now face a criminal penalty of imprisonment of up to one year and/or a fine of QAR 2,000 to 10,000 (USD 550 to 2,750).
The amendment also adds a new provision to Article 61 of the Labour Law, which provides grounds for summary dismissal without notice and end-of-service benefits if a worker incites colleagues to strike for unlawful reasons, causing disruption to the employer’s operations.
Joint Committees
Most significant among the amendments is that of Article 124, making the establishment of workers’ joint committees mandatory for larger businesses. Under the amended provision, any establishment employing 100 workers or more must form a ‘joint committee’ composed of equal representation from the employer and the workers. The number of committee members is determined by the size of the workforce: four members if the establishment employs 200 workers or fewer, six members if the number of workers exceeds 200 but is less than 500, and eight members if the establishment employs 500 workers or more.
Establishments that do not abide by this law and do not establish joint committees will face a fine of QAR 2,000 to 5,000 (USD 550 to 1,375), as per Article 144.
It must be noted that joint committees do not carry the weight of a union that allows workers to organise and engage in collective bargaining. One way to make joint committees more effective is to introduce sectoral committees and not just at the company level. In the case of the latter, the power equation will always be skewed towards the employer.
Examination Certificate for Migrant Workers
Migrant workers in certain professions must now obtain a training and examination certificate from Ministry-accredited training centres before being hired (Article 23 bis). The list of professions will be published on the Ministry’s website. The Minister will also issue the rules governing licensing, training, and the suspension or cancellation of licences.
Naming and Shaming of Businesses
The Minister of Labour, or a delegated authority, has been accorded discretionary powers to publish the name of an establishment on the Ministry’s website in cases of repeated violations of specific articles of the Labour Law or its implementing regulations. Triggering this power are Article 29, which prohibits any person, whether natural or legal, from recruiting workers from abroad without a licence; Article 33, which restricts licensed recruiters from charging workers fees, engaging in other commercial activities, or dealing with unlicensed foreign placement agencies; Article 45, which regulates the assignment of workers to duties different from those specified in their contract, whether on a temporary or permanent basis; Article 66, which governs the payment of wages including their timing, method, and currency; Article 108, which sets out the procedures for reporting and investigating work-related death or injury; and Article 133, which prohibits employers from suspending work, closing their establishment, or dismissing workers during an ongoing labour dispute.
It is worth noting that this is a discretionary power, meaning the Ministry is not obliged to publish the name of a violating establishment, even where repeated violations are confirmed. The provision’s effectiveness will therefore depend on how consistently the Ministry chooses to use it in practice.
New Penalties and Conditions for Non-Payment of Wages
Violations of Article 66 governing wage payments have been elevated to an imprisonable offence. Employers who fail to comply now face imprisonment of up to one year and/or a fine of between QAR 2,000 and QAR 10,000 (USD 550 to USD 2,750). In addition, migrant workers who are victims of wage violations under Article 66 are granted a new right to either transfer to a different employer or terminate their contractual relationship with the violating establishment entirely, with the violating establishment bearing the full cost of the worker’s repatriation to their home country.
The Ministry of Labour now has the power to suspend all or some of an employer’s transactions at the Ministry as a consequence of violations (Article 146 bis). For repeated violations in the same year, or collective disputes caused by wage delays, the suspension may extend to affiliated establishments if they are linked to the violation or used to circumvent the law. The suspension cannot affect ‘third parties’ rights. Importantly, the suspension does not block the employer from renewing the work permits and residency visas of their existing workers, nor can it prevent new employment contracts from being approved. The suspension is only lifted after the employer corrects the violation by a deadline set by the Ministry. It remains unclear whether this provision would enable employers to meet their payment obligations where their bank accounts have been frozen. This is a recurring issue in the Gulf, where workers have at times faced difficulties receiving their due wages and end-of-service entitlements because employers’ bank accounts have been frozen by government authorities due to labour violations.
New Schedule of Financial Penalties
A new annex of 23 specific violations and their fines has been issued, covering recruitment office violations. Fines range from QAR 3,000 to QAR 25,000 (USD 825 to USD 6,870) per violation, and multiply per worker affected. These include:
- Not using approved contract templates: QAR 10,000 (USD 2,750)
- Failing to provide a nine-month worker guarantee: QAR 7,000 (USD 1,925)
- Closing a recruitment office without ministry approval: QAR 25,000 (USD 6,870)
- Exceeding the Ministry-set financial complaints threshold within two weeks: QAR 25,000 (USD 6,780)
Image: Alfie Narisma - Opens in new tab
