QUESTION: We have rented a villa for business purposes and entered into a lease agreement. We have paid the advance and post-dated cheques have been issued to the landlord. But the municipality has not approved our business plan after inspection. We would like to sublet the villa to another company. Do we require permission from the landlord to sublet the premises? We have incurred heavy loss because of the municipality’s rejection . Is it a law that all lease agreements to be registered at the municipality? Is it mandatory for subletting?
RD, Doha

ANSWER: A tenant should obtain permission of the landlord to sublet according to the rental laws of Qatar. The permission is to be sought in writing, so there is proof in case of a dispute. However under Article 591 of the Civil Laws, if the leased property is delivered to the lessee in such a condition that it is unfit for the use for which it is leased, or if its usefulness is appreciably diminished, the lessee may demand either the cancellation of the lease agreement or a reduction of the rent equivalent to the loss of use; in both cases he is entitled to claim compensation, if compensation is due without prejudice to his right to oblige the lessor to carry out the necessary repairs to enable him to get the intended benefit.
The permission from the landlord is only required to sublet premises. All lease agreements between landlords and tenants should be registered by the landlord at the Office for Registration of Lease Contracts at the Ministry of Municipal Affairs and Agriculture.
The landlord has to pay an annual fee of 1% of the annual rent for such registration. There will be a penalty imposed on landlords who fail to register lease agreements. The contract must be registered in order for the landlord to be able to bring a claim in respect of the lease agreement before the Rental Dispute Settlement Committee or the Court.

Overtime regulations
Q: I work as the manager of a company in Doha. I work more than eight hours every day but no overtime is paid to me. The company has rejected my claim for overtime. Do Qatar’s Labour Laws exempt any category from work hour restrictions and overtime stipulations? Further, I have made a proposal to appoint one additional manager to reduce my workload, but the company has rejected this idea also, saying that appointment of manager can be done only through the Articles of Association. Under the company law, is it possible to appoint more managers in the company and do we need to mention that in a memorandum of association?
CS, Doha

A: According to Article 76, provisions of Articles 73, 74 and 75 (working hours, overtime and weekly rest days) of the law are not applicable on those working at senior positions, provided such positions bear the same authorities as that of the employer.
As per Commercial Companies Law, a limited liability company shall be managed by one or more managers nominated or selected from the partners or otherwise.
The manager shall have full power to manage the company unless the inCorp document limits the powers.
Managers shall be appointed in the inCorp document of the company or in a separate contract for a specific period or without limitation.

Case over cheating
Q: I have filed case against a person for cheating and the judgment is in my favour. Later I have found a clerical mistake in the judgment when I translated it. There is mistake in the name of the other party. One of my friends opined that the mistake may affect the execution procedure. Is there any provision in law to correct those errors?
WF, Doha

A: Pursuant to Article 242 of the Criminal procedure code, if a material mistake occurs in a judgment or a decision, the court which issued the judgment or decision shall undertake the correction of such a mistake automatically or upon the request of one of the litigants, after being summoned.
Such mistakes do not imply the invalidity of the judgment. Correction is made without a pleading after hearing the litigants.
The issued correction shall be indicated in the margin of the judgment or decision. This procedure shall be followed in correcting the name and surname.

Pension plans
Q: Is it obligatory on the part of the employer to establish a pension plan for expatriate employees under Qatar’s Labour Laws? Is it legally acceptable if such plan is established? What are its limitations?
ET, Doha

A: Qatar Labour Law is silent about obligatory establishment of pension plans. But pursuant to Article 56, employer and employee may create a better scheme/pension that would secure more benefit to the worker. However, if the net benefit is less than the gratuity, employer shall pay end-of-service gratuity calculated minimum at the rate of three weeks per year and refund worker’s contribution made under the scheme.

- Please send your questions by e-mail to: leges@qatar.net.qa (Mobile:55813105)


LEGAL SYSTEM IN QATAR
As per Article 661, if the receiver in bankruptcy decides to continue the lease, he shall have to pay the rent in arrears and to provide an adequate guarantee for the payment of future rent. However, if the guarantee is not adequate, the lessor may request the court for termination of the lease within thirty days of notification to continue the tenancy.
The receiver, with the permission of the judge, may sublet the property or relinquish the lease, even if the bankrupt is prohibited from doing so under the contract, provided that there is a genuine and clear bene?t for the group of creditors and that the lessor is fairly compensated.
According to Article 662, employment contract shall not be abrogated with bankruptcy of the employer; unless there is a necessity not to continue investment in the business. In the event of termination, labourer may claim appropriate compensation from the bankruptcy.
An agency shall terminate upon the bankruptcy of the agent or the principal. Nevertheless, the agency shall not terminate with the bankruptcy of the principal if either the agent or a third party have an interest therein.
Bilateral contracts wherein the bankrupt is a party shall not be rescinded as a result of judgment declaring bankruptcy unless based on personal consideration. If the receiver does not execute the contract, the other party may request recession and participate in the bankruptcy for the compensation arising from such recession. Every decision taken by the receiver on the contract shall be referred to the judge for permission and the other party may specify a period to allow the receiver to define his position with respect to the contract.
As per Article 666, negotiable instruments and other documents of value that are delivered to the bankrupt for collection of their value, or for having them allocated for a speci?c settlement, may be recovered if they exist in kind in the bankruptcy and their value has not been paid upon declaration of the bankruptcy. Nevertheless, recovery is not permitted if such documents are recorded in a current account between the applicant for recovery and the bankrupt. Cash deposited with the bankrupt may not be recovered unless it is identified and the applicant for recovery proves his ownership.
The price of goods, which are sold by the bankrupt for the bene?t of their owner thereof which has not been paid in cash or by negotiable instruments nor by set off in a current account between the bankrupt and the purchaser, may also be recovered.