Employer of Record in Qatar
Skuad’s Qatar EOR solution helps your business expand into Qatar without requiring you to set up an entity. Its automated platform enables you to expedite the onboarding of your remote team, handle their payrolls and compensation without worrying about legal compliances, taxation, etc. Talk to Skaud experts to learn more on how we can help streamline your expansion project in Qatar.
Qatar at A Glance
Population: 2.9 million
Currency: Qatari Riyal
Capital City: Doha
Languages Spoken: Arabic and English
GDP growth: 0.8% (2019)
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Employment in Qatar
What You Must Know Before Employing in Qatar
Qatar’s employment laws are not that complex and are similar to other countries in the Asia- Pacific region. However, there are some differences, so it is best to associate with local labor law experts to avoid legal complications. Given below are some essential details one must know about the labor laws in Qatar.
|Standard Working Hours
||48 hours per week/8 hours per day.
Regular working hours should not extend above six hours per day, 36 hours per week during the month of Ramadan
||Workers are entitled to receive the normal pay plus compensation of 25%.
People working overtime from 9 pm to 3 am are entitled to receive normal payment plus an extra 50% compensation. This does not include shift workers.
Actual work hours cannot extend for more than 10 hours unless under extraordinary circumstances.
|Paid Public Holidays
*The dates of these days are subject to change.
- Qatar National Sports Day
- Eid al-Fitr
- Eid al-Adha
- Independence Day
- Three working days, specified by the employer
Conditions for entitlement to annual leave are listed below:
Some rules and regulations regarding the annual leaves:
- If an employee has completed one year of service but less than five years of service is entitled to three weeks of paid annual leave.
- If an employee has completed five years of service he is entitled to four weeks of paid annual leave.
- If an employee has less than one year of service, the employee receives a percentage of the annual leave decided by the employer.
Paid holiday or vacation leave in Qatar is similar to those in other countries however, there are some special regulations due to religious sentiments. These can be read down below :
The starting date of the annual leave must be decided by the employer and employee at the beginning of the year.
- An employee may choose to not avail his/her annual leave and this is carried over to the next year. However, the untaken leave must not exceed more than half of the allowed leave days.
- The employer must pay the annual leave before the annual leave begins.
- The employee cannot divide his annual into more than two periods.
Muslim employees should be granted a one-time unpaid leave of 20 days if they wish to make a pilgrimage to Mecca.
- The employer should determine the number of Muslim workers granted this leave per year based on the needs of the business. The seniors at the job must be given priority when it comes to this pilgrimage leave.
||There are a few key things to keep in mind when it comes to medical leaves in Qatar.
In case of an injury or illness caused due to work, the company needs to:
- Employees are granted 14 days of full paid medical leave provided the employee has given at least three months of service. A proper medical certificate from a licensed physician is also required.
- Should the illness go beyond two weeks, the employee is granted another four weeks at half of his/her original pay.
- After four weeks, the employee is granted leave without pay until the employee is deemed fit enough to return to work.
All injuries and illnesses are required to be documented and reported to the Labour Administration every six months.
- Provide the employee with his/her full pay for 60 days.
- Cover all the medical charges and expenditures for the employee.
- Female employees are allotted 50 days of maternity leave after providing one year of service in the company. The employees must also show a proper medical certificate.
- Of the 50 days, 35 days’ leave must be taken after the birth of the child. However, if the mother does not have 35 days left of maternity leave, she may use her annual leave or take unpaid time off.
- In case of health complications after the maternity leave period, the employee can avail of 60 more days of unpaid maternity leave.
- Upon restarting work, the mother should be granted a one-hour nursing break every day, for at least one year.
- While no government rules exist for paternity leave, it is a general custom to grant the father five days off.
||Neither party is required to give a cause of termination of the employment contract. However, a termination notice is required before the process of termination can begin.
In certain cases, the employer may terminate the contract without a termination notice.
*Failure to abide by the new labor laws could result in a fine of USD 549 USD to USD 27,463 USD.
- The minimum wage of workers has now been raised to USD 275 per month. The minimum accommodation allowance is USD 137 and the food allowance is USD 82.
- The Restrictive Covenants clause in an employment contract that restricted ex-employees of a company to compete with their former employers has now been reduced to only one year.
|Health Insurance Benefits
||Companies are expected to provide supplementary private healthcare to their employees.
Qatari Nationals receive highly subsidized or reduced healthcare.
Connect with Skuad experts to know more about employment laws in Qatar.
Contractors Vs. Full-time Employees
Qatar’s unique employee contracts may confuse employers. We have simplified the difference between independent contractors and full-time employees to help you make the correct decision.
- Ideal for short-term projects.
- No long-term contracts.
- No benefit packages are required.
- The low workload for the employer as the contractor owns all the tools of business, advertising, etc
- A long-term commitment to the company
- Designated working hours and fixed wages.
- Ideal for expanding the business into a new country.
- Provides flexibility of overtime shifts.
- Not always the most dedicated workers.
- Risk in court as the agreements made in the US are void in Qatar.
- There will be a need for a local entity if there is a court case.
- Sets his or her working hours.
- Complex employment contract which needs to be written in Arabic and English.
- Companies must provide health benefits to the employees.
- Qatar’s labor laws must be followed to avoid legal complications.
Hiring in Qatar
People from around the world work in Qatar. The hiring process is complex but well-laid down by the authorities. Recruitment agencies play an instrumental role in the recruitment process. Foreign employees must have a work permit and contracts well in place before working here. Like everywhere, people look for jobs on various job portals, but one must conduct a solid background check of the applicants and employers before entering into a contract. Frankly, there is too much to handle before hiring in Qatar. Trust Skuad to do it for you. Call us to help guide you through hiring in Qatar.
Probation & Termination
The standard probation period in Qatar must not exceed six months. During this probation period, the employer gives proper training to the employee and assesses whether the worker is fit for the job or not. If unhappy with the new employee’s performance, the employer can terminate the employment contract. A three days notice is required to call off the employment contract formally.
According to Qatar Labour Laws, the employee and the employer both can terminate the employment contract with or without a reason. The termination can only be done with proper notice. For employees who have been in service of the company for less than five years, a one-month notice period must be given. For employees who have worked at the company for more than five years, at least two months of notice period must be provided.
In special cases, the employer may terminate the employee’s employment contract without providing any notice. This can only be accepted if the employee has done one of the following things:
- Assumes a false identity or nationality.
- Submits false documents.
- Commits an act that causes huge financial loss to his/her employer.
- Discloses confidential information.
- Is intoxicated or under the influence of drugs during working hours.
In cases of fixed contracts, the employer and employee both must agree to a mutual termination of the contract. Should the employee not desire the termination, the employer may have to pay the employee the remainder of the wages in the contract. The employee can terminate a fixed contract if:
- The employer breaches the terms of the contract.
- The employer misleads the employee.
- The employer physically assaults the employee.
- The employee believes that his continued employment would bring harm to him.
In these cases, the employee retains his/her End of Service Gratuity. Skuad’s EOR solution enables organizations to remain 100% compliant with the Qatari employment laws. Contact Skuad to learn more.
Hiring an Employer of Records service in Qatar can be a huge help for an expanding business. The complex contract laws, payroll process, and foreign tax rules can be managed remotely without the need to set up a local entity. Since the EOR service acts as the HR section of the company, the duties of hiring employees, arranging their Visa and work permits, complying with the labor laws of the country, and advising the client of notice periods and termination, all have to be handled by the EOR team. Learn more about the benefits of using Skuad solutions.
Types of Visas in Qatar
||A Work Visa is a must for employees working in Qatar. The employees will require a Work Visa as well as a residence permit. The criteria of attaining a Work Visa in Qatar are as follows:
Applying for a Work Visa also takes a lot of documents. Given below are all the documents an employee must submit to acquire a Work Visa:
- Firstly the company must register with the Immigration Department.
- Several documents as well as a trade license need to be submitted for review. After approval, the employer will receive an Immigration Card and Representative Card.
- The Employer must then apply for work permits for all of the employees he/she intends to employ from outside the country.
- After the approval of the work permits, the employer will then need to apply for an employment visa for all of his/her foreign employees.
- Finally, after the employee arrives in Qatar with their work visas, the employer must then start an application for the employee’s residence permit. This must be done within seven days of the employee’s arrival.
- After the residence permit has been issued, only then can the employee start working for the company.
Documents required to attain a residence permit:
- An employment contract.
- A medical certificate to show that the employee is healthy.
- An application form approved by the Ministry of Labour.
- Two passport photographs.
- Copy of the employee’s passport.
- Educational qualifications.
- Immigration card of the employer.
- The employment visa.
- The employee’s passport.
- Two passport photographs of the employee.
- The employment visa.
- Employee’s medical health certificate.
- Copy of the company’s immigration card.
- Copy of the company’s Commercial Registration.
||A Business Visa is usually applied for when the person visiting Qatar is on a quick business trip and won’t be staying for too long. The Business Visa does not allow the person to permanently settle in Qatar. There are two main forms of Business Visas, the 72-hour-visa and then Three months business visa. The differences between the two are given below:
||Three months Visa
|This sort of visa is usually applied for very short business trips and it is only applicable for 72 hours or three days.
||This sort of visa is acquired for contractual, and it allows the worker to stay in Qatar for three months to finish the contractual work.
|This sort of visa is usually issued on arrival.
||This sort of visa has to be arranged by the employer.
To start working in Qatar, the employees will need work permits and residence permits. Getting the work permits is a hassle and relatively more complicated than in other countries because the Qatari government favors Qataris over foreign workers. The labor laws dictate that the employer must sponsor his foreign employees. This sponsorship also binds the worker to the company. Skuad’s EOR solution gives access to updates on all of their employees and makes life simple. Know more about our customized solutions.
|Work Permit Terms
|Can Skuad sponsor a work permit in Qatar?
|Work Permit process
- Step 1: Employer must get his/her immigration card and representative card from the Ministry of Labour.
- Step 2: The employer will then need to apply for work permits and employment visas for each of his foreign employees.
- Step 3: The employees can then travel to Qatar after receiving their work visas as well as clearing a medical test.
- Step 4: The work permits need to be managed within seven days of the employees’ arrival.
- Step 5: Along with the work permit, the residence permit also needs to be registered and completed within seven days of the employee’s arrival.
- Step 6: After gaining the work visa, the employment visa, the work permit as well as residence permit, the employee can start their work.
||The employer needs to submit these documents to apply for the work permit:
- The completed application form from the Ministry of Labour.
- The employment contract.
- Medical certificate of the employee.
- A copy of the company’s commercial registration.
- The Business’ immigration card.
- Two passport-sized pictures of the employee.
- A copy of the employee’s passport.
- Employment visa.
- Relevant educational documents.
||The validity of the work permit can be anywhere from one year to three years. The length of the work permit and residence permit must be specified during the application period.|
|Work Permit process in different countries
||Due to the stringent labor laws in Qatar, the process of acquiring a work permit is significantly more complex than in other countries.|
|Change of sponsors
||The Employer is the sole sponsor for all foreign workers.|
|When can an employee travel to Qatar?
||The employee can travel to Qatar after receiving his work visa. Upon arrival, the company must sort out his work permit and residence permit within seven days.|
|Cost of work visa and residence permit
||Employment entry visa: QR 200|
Residence permit: QR500
Total: QR 700
|Switch work visa to work permit?
|Cancellation of work permit
||If the employer or employee wishes to cancel the employment contract, then the employee must apply for an exit visa to leave Qatar. The employer must approve the exit visa and the visa is only valid for seven days.|
For more details, you can talk to experts at Skuad.
Payroll and Taxes in Qatar
Things You Must Know To Set Up Payroll In Singapore
Managing payrolls and taxes in Qatar can be slightly challenging for companies as the country has some unique tax laws. One can manage the payrolls and taxes of their employees either by setting up a local entity following all the government guidelines and handling all the employment processes, visas, payrolls, and taxes or choose an EOR service to take care of all the duties. The employer can then easily and remotely manage all of his employees through a unified dashboard. For more details on your perfect EOR solution, book a demo.
Taxes in Qatar
Qatar is one of the few countries that does not impose income tax on employees.
|Corporate Income Tax
||Although the country does not cut anything from the employees, there is still a corporate income tax for businesses that are partly or fully foreign. The CIT for most cases is 10%. There is no CIT for companies owned by Qatari nationals. Companies invested in the oil and gas sector are issued 35% CIT.
||Qatar does not employ Sales Tax or VAT.
||There are no property taxes in Qatar.
||Goods coming in from outside Gulf Cooperation Council nations are taxed at 5%. Some goods such as tobacco have higher taxes.
|Withholding Tax (For non-residents only)
Royalties and Technical fees: 5%
Interests, Commissions, Brokerage fee, Director’s fee, Attendance fee, and payment for other services: 7%
The Withholding Tax may differ for these 50 countries.
||New laws in Qatar have made health insurance compulsory and ex-pats will need to provide documents that prove that they have health insurance. The health insurance must cover the entire period of the expats’ stay in Qatar.|
Incorporation: Setting up a holding company in Qatar
A few rules and regulations to keep in mind before setting up a holding company in Qatar:
- The Ministry of Economics and Commerce issues the approval of all companies in Qatar, including the holding ones.
- The minimum share capital required for opening a holding company in Qatar as a public shareholding company is QAR 10 million.
- The limited liability company provides the business structure for the holding company to be registered.
- The Memorandum of Association and The Articles of Association are required to be submitted during the time of registration.
Setting up a holding company in Qatar could be quite beneficial for a business as holding companies receive a lot of tax exemptions. Tax exempted from holding companies are:
- Withholding Tax and other Dividends
- Wealth Tax
To know more about how to register a holding company and how to expand into Qatar, call us.
Professional Employer Organization
A Professional Employer Organization (PEO) is an organization that shares the responsibility of managing employees and payroll with your company. Unlike EOR services where the complete responsibility of compliance management lies with the outsourced company, a PEO works jointly with your business. The basic points of difference between the two solutions are as follows.
||No Legal co-employer
|Services for a minimum of
|Local business registration
||Workers Compensation provided
Skuad provides both EOR and PEO services for managing your teams globally. Learn more by connecting with our professionals today.
Expanding into Qatar is a fantastic choice for your business as it is one of the fastest-growing economies with one of the lowest taxation policies in the world. Collaborating with Skuad will smoothen your transition into the new country. Employment, payrolls, taxes, and other legal, HR-related activities will be the EOR’s responsibility. Its unified dashboard will also allow you to manage your team of workers remotely. Connect with Skuad experts to know how it does not get any simpler than this.