By Nizar Kochery /Doha

QUESTION: How is liquidation of a company with limited liability initiated other than through court in Qatar? We have a WLL company in Doha engaged in trading but in serious liabilities. We shareholders would like to liquidate the company. Please advice.

EL, Doha

 

ANSWER: Under Article 297, the liquidation of a company shall take place according to the provisions of its Articles of Association or as agreed by shareholders upon dissolution.

Accordingly, a WLL company may be dissolved in accordance with its Articles of Association by way of a unanimous (unless otherwise Articles of Association provides a specific majority) General Assembly resolution  approving the dissolution of the company and appointing a liquidator to execute the liquidation process.

A clearance from the tax department is required for winding-up process. Once the General Assembly resolution submitted to the Commercial Registry, the company is in official liquidation.

The company’s commercial registration should be reissued with the wording “in liquidation” appearing after the company’s name. From this stage, the liquidator will be able to act for the company.

 

Need to maintain register of wages

Q: One of our workers has gone to the Labour Department and later to the court claiming end-of-service payment. In the court he is also claiming salary arrears. Actually we have made all payments till date. He has been asking for sponsorship transfer but we are unable to offer it because of various issues. The main problem is though we make payments we never maintain any receipt vouchers. Please advice how important is to maintain  proof of payment.

YY, Doha

 

A: The employer is duty bound to maintain a wages’ register and shall not be relieved from his obligation to pay the wage due to the worker unless he has actually transferred it to the bank or the worker or his attorney has signed in acknowledgement of the receipt thereof in the register or receipt prepared for this purpose provided that the said documents shall include the details of the wage.

Termination of contract

Q: My residence permit expires on December 10 and I don’t want my sponsor to renew it. I have given a 30-day advance notice to my sponsor, expressing that I will not renew my contract. Is it legal for my employer to hold me for three months (grace period) after my residence permit expires? Is it legal for me to stop working after December 10? How can I compel my employer to release me?

CC, Doha

 

A: According to Article 49, by giving notice of one month, a contract of indefinite term of less than five years of service could be terminated.  If the contract is of definite duration, worker could express his desire not to renew the contract on its expiry and employer will be under legal obligation to repatriate the worker.

Article 57 stipulates that the employer shall complete the proceedings of returning the worker within a period not exceeding two weeks from the expiry date of the contract to the place from where he has recruited him at the commencement of the engagement or to any place agreed upon between the parties.

The employee will not be under any legal obligation to offer services for any grace period after completion of the contractual term.

Overtime payment

Q: I have been working in Qatar for the last nine months. The company pays salary on time. But the working hours are up to 10-14 hours a day (plus travelling time).  It doesn’t pay any overtime. We have to work even on Fridays and holidays. How can I claim overtime for the excess working hours?

AJ, Doha

 

A: Under Article 73 of the Labour Laws, the maximum ordinary working hours shall be 48 hours per week at the rate of eight hours per day. Such duty can be extended to a maximum of not exceeding 10 hours.

For work beyond normal work hours, worker is entitled for overtime at the rate of 125%. The time spent by the worker in transportation to and from the place of work and residence of the worker shall not form part of the working hours.

The worker shall be entitled for weekly paid rest of not less than 24 consecutive hours and Friday shall be the weekly rest day for all workers with the exception of the shift workers.

For working during the rest day the worker shall be compensated for the rest day by another day and shall be paid for working that day the wage payable to him for the ordinary weekly rest day or his basic wage plus an increase of not less than 150%.

Procure whatever possible proof for establishing overtime work and seek assistance of  the Labour Department.

 

*Please send your questions by  e-mail: leges@qatar.net.qa

 

LEGAL SYSTEM IN QATAR

If the lease agreement is entered into to enable the lessee to engage in a certain occupation in the leased premises and then the lessee engages in another occupation not as agreed upon in the lease agreement, the lessor may terminate the lease subject to compliance with the evacuation time limits provided for in Article 588.

If the lessee’s employment obliges him to change his place of residence, he may claim termination of the lease of his residence, provided that the notice of evacuation shall be complied with.

Any agreement to the contrary shall be void.

Regarding leases of agricultural land, the provisions of leases shall be applicable subject to compliance with the provisions of the following unless there is agreement or custom to the contrary.

A lease of agricultural land shall not include cattle and agricultural equipments kept therein unless there is a specific provision to this effect in the lease. When cattle and agricultural implements belonging to the lessor are handed over to the lessee, the lessee is under the obligation to take proper care of them and to maintain them in the manner required for their customary use.

An agricultural land shall be exploited in the mutually agreed manner, failing which the lessee shall exploit the land according to the nature thereof and the prevailing agricultural custom.

In particular, he shall ensure that it remains fit for production. Unless otherwise agreed or by customary practice, the lessee is bound to carry out the repairs necessary for the normal enjoyment of the leased land.

He is responsible in particular for the normal maintenance duties for the water wells, drains and buildings intended for residential purposes or other kinds of enjoyment. The repairs vital for ensuring the intended enjoyment of the property shall be the responsibility of the lessor.

Article 643 stipulates that if the lease term expires before the crop yields its result for a reason beyond the lessee’s control, it will be extended for a similar rent until the harvest thereof.

A lessee shall do nothing of a nature to diminish or retard the enjoyment of the land by an incoming lessee. He is bound, in particular, just before vacating the land, to allow the incoming lessee to prepare the land and to sow, if he does not sustain any injury thereby.

Regarding waqf or endowment property, according to Article 661, the administrator has the right to lease the property. A beneficiary, even if he is the sole beneficiary, cannot grant a lease unless the right to do so has been given to him by the constituent of the will or unless he is authorised to do so by a person who has power to grant a lease, whether he be the administrator or concerned Waqf Council.

The administrator is entitled to receive the rent, and payment must not be made to the beneficiary without the consent of the administrator. However, the administrator is not allowed to take such property on lease nor may he lease the said property to his spouse or to any of his ascendants or descendants.