Employer of Record in Qatar

An Employer of Record (EOR) in Qatar legally employs your workers on your behalf. This means the EOR handles all local employment tasks. They manage payroll, taxes, benefits, and compliance with Qatar's labor laws. You get to manage your team's day-to-day work without setting up a local legal entity. An EOR like Rivermate (https://rivermate.com/employer-of-record) makes it simpler to hire employees in Qatar.

How an Employer of Record (EOR) Works in Qatar

Using an EOR in Qatar follows a straightforward process. The EOR becomes the legal employer, while you retain control over your employee's daily tasks and projects.

Here is how it works:

1. You Find the Candidate: You recruit and select the talent you want to hire in Qatar.
2. The EOR Hires Them: The EOR drafts a locally compliant employment contract. They then hire the employee onto their own legal entity in Qatar.
3. Onboarding Starts: The EOR manages all the necessary paperwork. This includes things like visas and work permits, which are essential for employing people in Qatar.
4. Payroll and Benefits are Managed: The EOR processes payroll each month. They make sure to deduct the correct taxes and social security contributions as required by Qatari law. They also administer employee benefits.
5. You Manage Your Team: You direct your employee’s daily work and responsibilities. The EOR handles the HR and legal backend, leaving you to focus on your business goals.

Why use an Employer of Record in Qatar

Using an EOR in Qatar helps you expand your business there quickly and compliantly. It removes the major hurdle of establishing a local company, which can be a long and expensive process. You can access Qatari talent without the legal and administrative burdens.

Here are some key benefits:

• Enter the Market Faster: You can hire employees and start operations in Qatar in a matter of days instead of months.
• Ensure Legal Compliance: EORs are experts in Qatari labor law. They make sure your employment practices meet all legal requirements, reducing your risk.
• Save Money: You avoid the high costs associated with setting up and maintaining a legal entity in Qatar.
• Simplify HR and Payroll: The EOR handles all administrative tasks. This includes payroll processing, tax withholding, and managing benefits for your Qatari employees.
• Sponsor Work Visas: An EOR with a local presence in Qatar can legally sponsor the necessary work permits and visas for foreign employees.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Qatar includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Qatar.

Hiring in Qatar is a great way to expand your team. The country offers a dynamic and growing market. But, it is important to understand the local labor laws. This guide will walk you through the key aspects of hiring in Qatar, so you can onboard your new team members with confidence.

Employment contracts & must-have clauses

When you hire an employee in Qatar, you must provide a written employment contract. The contract should be in Arabic, but you can provide a bilingual version. In case of any dispute, the Arabic text will be considered the official version.

There are two main types of employment contracts in Qatar:

• Fixed-term contracts: These contracts have a specific end date and can last up to five years.
• Indefinite-term contracts: These contracts do not have a set end date and continue until one party terminates them with proper notice.

Your employment contracts must include the following essential clauses:

• Full names and addresses of both you and the employee
• Job title and a clear description of the employee's responsibilities
• The start date of employment
• The type of contract (fixed-term or indefinite)
• Salary and any allowances, stated in Qatari Riyals (QAR)
• Working hours
• Annual leave entitlement
• Termination conditions and notice periods

For foreign nationals, you will use a government-standard electronic employment contract to secure their work permit and residence visa. It is common to supplement this with a more detailed internal agreement.

Probation periods

You can include a probation period in your employment contracts. This gives you time to assess a new employee's skills and suitability for the role.

Here are the key points about probation periods in Qatar:

• The maximum length of a probation period is six months.
• An employee cannot be placed on probation more than once by the same employer.
• If you decide to terminate the contract during probation, you must give at least one month's written notice.
• If an employee decides to resign during probation to join another employer in Qatar, they must also provide one month's notice. If they plan to leave the country, a two-month notice period is required.

Working hours & overtime

Standard working hours in Qatar are set to ensure a healthy work-life balance for employees.

Employees are entitled to at least one rest day per week, which is typically Friday. They should not work for more than five consecutive hours without a break of at least one hour.

If an employee works beyond the standard hours, they are entitled to overtime pay:

• Daytime Overtime: At least 125% of their regular hourly wage.
• Nighttime Overtime (9 PM to 6 AM): At least 150% of their regular hourly wage.
• Working on a Rest Day: The employee is entitled to an alternative rest day or payment at 150% of their regular hourly wage.

The total workday, including overtime, should not exceed 10 hours.

Public & regional holidays

Your employees in Qatar are entitled to paid public holidays. The main public holidays are:

• Eid al-Fitr: Marks the end of Ramadan.
• Eid al-Adha: The Feast of Sacrifice.
• Qatar National Day: Celebrated on December 18th.
• National Sports Day: Held on the second Tuesday of February.

The exact dates for Eid al-Fitr and Eid al-Adha change each year as they are based on the Islamic lunar calendar.

Hiring contractors in Qatar

Hiring independent contractors can be a flexible way to access specialized skills for specific projects. However, it is crucial to understand the legal landscape to avoid misclassification risks.

In Qatar, the law does not strongly distinguish between employees and independent contractors. The nature of the working relationship is more important than the title in the contract. If a contractor is treated like an employee, they may be entitled to the same rights and benefits as one.

Key factors that can lead to misclassification include:

• Control: You direct how, when, and where the work is done.
• Integration: The contractor is a core part of your business operations.
• Financial Dependence: The contractor's main source of income is from your company.
• Tools and Equipment: You provide the necessary tools and equipment for the work.

Misclassifying an employee as a contractor can result in penalties, including back payment of wages, benefits, and social security contributions.

An Employer of Record (EOR) can help you mitigate these risks. An EOR can compliantly engage contractors on your behalf, handling contracts, payments, and ensuring adherence to local laws. This allows you to focus on your business goals while the EOR manages the administrative and legal complexities of hiring contractors in Qatar.

In Qatar, your payroll needs to be accurate and on time. The system is straightforward but has specific rules you must follow. You pay your employees in Qatari Riyals (QAR) through a system designed to make sure everyone gets paid correctly and on schedule. It’s a structured process that supports both you and your employees.

Payroll cycles & wage structure

You must pay employees at least once a month. If your team is not on a monthly or annual contract, you need to pay them at least every two weeks. All payments go through the Wage Protection System (WPS), an electronic transfer system that ensures transparency and timeliness.

An employee's compensation typically includes:

• Basic Salary: The fixed part of their pay.
• Allowances: For things like housing and transportation.
• Other Payments: This can include overtime, commissions, and bonuses.

Overtime & minimums

The minimum wage in Qatar is QAR 1,000 per month. In addition to this, you must provide:

• Accommodation Allowance: QAR 500 per month if you don't provide housing.
• Food Allowance: QAR 300 per month if you don't provide food.

The standard work week is a maximum of 48 hours, at 8 hours per day. For any time worked beyond these hours, you must pay overtime at 125% of the employee's normal wage. If the overtime occurs between 9 p.m. and 4 a.m., the rate increases to 150%. For work on a designated rest day, the overtime rate is also 150%.

Employer taxes and contributions

Your contributions as an employer in Qatar are mainly for social security for your Qatari employees.

Employee taxes and deductions

One of the key features of working in Qatar is the absence of personal income tax. However, Qatari nationals contribute to social security.

In Qatar, your employee benefits and leave package is a key part of your compensation. The law sets minimum standards for time off and other benefits. Many companies offer more than the minimum to attract and keep good employees. Understanding these benefits helps you know what to expect.

Statutory Leave

The law in Qatar requires employers to provide several types of paid leave.

• Annual Leave: After one year of continuous work, you get at least three weeks (21 days) of paid annual leave. This increases to four weeks (28 days) after you have been with the same employer for five years.
• Sick Leave: If you have worked for more than three months, you are entitled to sick leave. You can get up to two weeks off with full pay, followed by four weeks at half pay. You will need a medical certificate to be eligible.
• Maternity Leave: Female employees who have worked for a full year are entitled to 50 days of paid maternity leave.
• Hajj Leave: Muslim employees are entitled to unpaid leave for up to two weeks, once during their employment, to perform the Hajj pilgrimage.

Public Holidays

You are entitled to paid time off for official public holidays. The dates for Eid holidays are based on the lunar calendar and may vary slightly.

Typical Supplemental Benefits

Many employers in Qatar offer benefits that go beyond the legal requirements. Here’s a look at both required (statutory) and common extra (non-statutory) benefits.

How an EOR Can Help with Setting Up Benefits

Setting up a competitive and compliant benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Qatar. This means they understand the local labor laws and market expectations.

Here is how an EOR can help:

• Ensure Compliance: They make sure your benefits package meets all of Qatar's legal requirements.
• Offer Competitive Packages: They have insight into local market standards, helping you offer benefits that attract top talent.
• Manage Administration: An EOR handles the administrative work of managing leave, payroll, and benefits. This saves you time and reduces complexity.
• Simplify the Process: Instead of you needing to research and set up everything from scratch, the EOR provides a streamlined solution.

When your time with an employee in Qatar comes to an end, it's important to handle their departure correctly. The process involves specific steps and legal requirements to ensure a smooth and compliant exit. This includes providing the correct notice period, calculating their final pay, and arranging for their departure from the country if they are an expatriate.

Notice periods

When you decide to terminate an employment contract, you must give the employee written notice. The length of the notice period depends on how long the employee has worked for you.

• Less than two years of service: One-month notice.
• Two to five years of service: One-month notice.
• More than five years of service: Two-months notice.

Your employment contract can specify a longer notice period, but not a shorter one.

Severance pay

In Qatar, severance pay is known as an "end-of-service gratuity." An employee is entitled to this payment after completing at least one full year of continuous service. The amount is based on their basic salary and length of service.

Here is how you calculate the end-of-service gratuity:

The calculation is based on the employee's final basic salary.

How Rivermate handles compliant exits

Navigating the details of termination and offboarding in a different country can be complex. We make sure every step of the process is handled correctly and in compliance with Qatar's Labor Law.

Here’s how we help you manage employee exits:

• Clear Communication: We ensure all termination notices are in writing and delivered according to legal requirements.
• Accurate Final Pay: We calculate all final dues, including unpaid salary, accrued leave, and the end-of-service gratuity.
• Repatriation: For expatriate employees, we manage the process of canceling their residency permit and arranging their travel home.
• Documentation: We handle all the necessary paperwork to ensure a clean break and protect you from future legal issues.

We take care of the complexities so you can focus on your business.

Navigating Qatar's visa and work permit system can feel complex, but it boils down to a few key principles. To legally work in Qatar as a foreign national, you need a Work Residence Permit. Your employer must sponsor you for this permit. This process involves securing a job offer, getting an entry visa, and then completing medical checks and providing biometric data once you arrive in the country. Think of the work visa as your ticket to enter the country for work, and the residence permit as the official authorization to live and work there long-term.

Employment visas & sponsorship realities

Sponsorship is the foundation of working in Qatar. A Qatari-registered company must sponsor any foreign employee. This means the employer is legally responsible for you while you are in the country.

An Employer of Record (EOR) can sponsor employees, making it possible for companies without a legal entity in Qatar to hire talent there. The standard route for this is the Work Residence Permit.

Here’s what that process typically looks like:

• Job Offer: You receive a formal job offer and sign an employment contract.
• Entry Visa: Your employer applies for an entry visa on your behalf.
• Travel to Qatar: Once the entry visa is approved, you can travel to Qatar.
• In-Country Process: Within a week of arrival, your employer starts the residence permit application. This involves a medical exam and fingerprinting.
• Permit Issued: After these steps, your official Work Residence Permit is issued.

It's important to know that Qatar does not offer special visas for digital nomads or remote workers. To work in the country, you must be sponsored by a locally licensed employer.

Business travel compliance

If you are visiting Qatar for short-term business activities like meetings, you will typically use a business visa. You cannot perform work on a tourist or business visa. These visas are for temporary visits and do not grant the right to employment.

For any activities that count as work, you need the proper Work Residence Permit sponsored by a Qatari employer. Working without the correct authorization can lead to serious consequences for both you and the company. Always ensure your activities in the country align with the type of visa you hold.