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Qatar

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Qatar

Notice period

The Qatar Labor Law stipulates specific notice periods during employment termination, ensuring a fair process for both employers and employees.

Notice Period Based on Employment Duration

The notice period is determined by the employee's length of service with the same employer. For those who have served less than two years, one month's notice is required. For those who have served more than two years, two months' notice is required. It's important to note that the employer must provide written notification of the termination to the employee.

Notice Period During Probation

Qatar's Labor Law allows for a maximum probation period of six months. During this probationary period, the notice requirements are different. If the employer initiates termination, they can terminate the contract with a shorter notice period of three days if they deem the employee unfit for the job.

Additional Considerations

The employment contract can stipulate a longer notice period than what's mandated by law. In such cases, the longer period takes precedence. If the employer fails to provide the required notice, they are obligated to compensate the employee for the wages they would have earned during the notice period.

Severance pay

In Qatar, the Labor law mandates severance pay, known as End-of-Service Gratuity (EOSG), for employees who have completed at least one year of continuous service.

Calculation of EOSG

The mandatory minimum severance pay is three weeks' basic salary for each year of service. However, employment contracts may agree upon a more generous severance package as long as it exceeds the legal minimum. EOSG is calculated proportionally if the employee hasn't completed a full year of service.

Eligibility for EOSG

An employee must complete at least one year of continuous service with the same employer to be eligible for EOSG. Exceptions to this rule are employees terminated during the probationary period, who are generally not entitled to EOSG, unless the termination is not initiated due to gross misconduct.

Exclusions from EOSG Calculation

The following components are typically excluded from the basic salary calculation for EOSG:

  • Overtime pay
  • Allowances (housing, transport, etc.)
  • Commissions
  • Bonuses

Additional Considerations

Employers must provide non-Qatari employees with a repatriation flight or its equivalent value alongside the End-of-Service Gratuity payout. Severance pay in Qatar is an essential right of employees, ensuring financial support after the termination of employment.

Termination process

Terminating employees in Qatar requires adherence to the guidelines set forth in the Qatar Labor Law to ensure fairness and protect the rights of both parties.

Types of Termination

There are three main types of termination:

  • Termination with Notice (Indefinite Contracts): Both employers and employees may terminate indefinite-term contracts by providing written notice. The required notice period depends on the employee's length of service, as outlined in Qatar's Labor Law.
  • Termination for Cause (Summary Dismissal): Employers can terminate an employee without notice under specific circumstances, such as gross misconduct by the employee.
  • Mutual Termination: Employers and employees may mutually agree to terminate the contract under agreed-upon terms.

Termination Procedure (with Notice)

The termination procedure with notice involves several steps:

  1. Written Notice: The terminating party (employer or employee) must provide written notice to the other party, clearly stating the reason for termination (if applicable) and the termination date.
  2. Notice Period: The employee must continue to work during the notice period as per the legal requirements.
  3. Repatriation: Employers must cover repatriation costs for non-Qatari employees returning to their home country, or provide an equivalent value with their final pay.

Important Considerations

There are several important considerations to keep in mind:

  • Contractual Obligations: Check the employment contract for any specific termination clauses or procedures that supersede the legal minimums.
  • Disputes: In case of disputes regarding termination, employees may approach the Labor Relations Department at the Ministry of Labor.

The termination process in Qatar should be conducted transparently and in compliance with labor laws to mitigate potential legal complications.

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