This short article on developments of Qatarisation in the private sector, will be relevant to business owners; governmental funded businesses; a Qatari job seeker, or a foreign national born to a Qatari mother seeking work.
Introduction
While the Labour Law No. (14) of 2004, as amended (“Labour Law”), contains various provisions that support and regulate Qatarisation of jobs in the private sector, the provisions enshrined under the Labour Law do not provide a clear implementation plan that ensures gradual and effective transition to Qatarisation of jobs in private businesses.
To ensure effective and smooth transition and implementation of a balanced Qatarisation of jobs plan, the State of Qatar issued the Law No. (12) of 2024 regulating the Localisation of Jobs in the Private Sector (“Law”).
When does it come into force?
The Law received the Emiri Assent on September 1st, 2024 and shall officially be in force 6 (six) months following its publication in the official gazette. The Law was published in the October edition of the official gazette; and shall come into force on 17 April 2025.
Targeted Groups
The Law is designed to open new opportunities in the local business spectrum for:
- Qatari citizens, and;
- Non- Qataris who are born to Qatari mothers (hereinafter “Beneficiaries”).
The Law aims to localize jobs within the private sector in Qatar and encourages Beneficiaries to explore jobs within the private sector, given how material private businesses have become to the economy of Qatar.
Localisation Plan by the Ministry of Labour
It is expected that in the coming months the Ministry of Labour will develop and implement a localization of jobs plan which shall identify the job categories that will exclusively be occupied by Qataris and/or non- Qataris who are born to Qatari mothers, as the case may be. The plan will also determine the training requirements and onboarding policies for such jobs.
Incentives to Private Sector
The Law also suggests that private sector’s companies complying with the Law will be entitled to benefits, facilities and subsidies to be identified and approved by the Cabinet.
Obligations of Private Sector
- Abiding by the Law and Localisation Plan
The Law obligates private companies, private businesses, private institutions, and even private companies which are governmentally funded to abide by the employment localization plan which shall be implemented by the Ministry of Labour after being approved by the Cabinet. As stated above, the plan shall identify the job categories that will exclusively be filled in by the Beneficiaries and will determine the training requirements and onboarding policies for such jobs.
- Report on Vacant Occupations
Except companies incorporated by Qatar Energy, or companies where Qatar Energy is a shareholder, or companies working in the oil and gas excavation or explorations operations in Qatar, the Law requires private companies, businesses, private establishments, and governmentally funded private companies to report to the Ministry of Labour regarding all vacant jobs within their entities in no later than one month from the date of either creating the job occupation or the date when the said position become vacant within the entity.
The report to the Ministry of Labour shall include the conditions and qualifications which the company requires to be satisfied by a candidate who wishes to apply for such occupancy(ies). The report/notification shall also indicate the salary range and the expected joining date.
The Law obliges companies which onboard any of the- Beneficiaries subject of the Law to notify the Ministry of Labour within 60 (sixty) days from the date of finalizing the onboarding formalities to the Beneficiaries.
- Regular Updates
Private companies are also required to send a regular updated list every 6 (six) months which contains the relevant data of both Qataris and non- Qatari employees who are employed by the said companies.
Penalties
Non-compliant companies will be subject to penalties which range from a written warning to imprisonment, and supplementary monetary fines, depending on the severity of the breach.
In addition, the Law also considers the person who is responsible for the actual management of the company a partner in crime in case it is proven that he had knowledge or was supposed to be aware of the breach.
The Law provides a mechanism for settlement to be agreed between the non- complaint company and the Ministry of Labour in case a breach is committed by the company in relation to the mandatory provisions of the Law.
If you have any questions or need any further information about the Law, please do not hesitate to contact us at info@alansarilaw.com
Article by:
Rafi Sajian, Partner (Email: rsajian@alansarilaw.com); and
Ahmed Amin Hassan, Senior Associate (Email: ahassan@alansarilaw.com)