Gratuity Payment in Qatar: Read up on your entitlements
For international workers coming to the end of their employment contract in Qatar, there is the end of service gratuity to look forward to. What is this exactly? Simply put, an end of service gratuity is like an end-of-employment bonus.
Who is entitled to a Gratuity?
On completion of their contract, international workers are entitled to a gratuity, as long as their contract with that company lasted at least a year. This means it could be thought of as an end-of-service bonus, thanking employees for their service to Qatar.
How is the Gratuity calculated?
The gratuity payment is calculated by the two parties involved: the employer and the employee. That agreement is then set out in the employee’s contract.
The amount paid in each gratuity is usually based on the amount of time the employee has spent with the company. However, it must not be less than a three-week wage for every year of completed employment.
Outside each full year of work, the employee is also entitled to gratuity for the fractions of the year worked, which is paid in proportion to the total duration of employment.
To determine the gratuity, the employee’s last basic wage is used as the basis for the calculation. This basic wage does not include bonuses.
So, for example, if an employee has been with the company for seven years, he or she will receive four weeks’ pay for each of those seven years, calculated at the last basic pay received before the contract ended.
When is the Gratuity paid?
The gratuity should be paid upon the termination of the employee’s contract, paid alongside any other amount owing.
If an employee happens to die during the term of his or her contract, the employer is obliged to pay the employee’s gratuity to the court within 15 days. It is then distributed to employee’s next of kin.
Important Facts to Remember
For employees who owe their employer money, that outstanding amount may be deducted by the employer from their final gratuity payment.
According to Article 61 of the Labour Law, there are cases in which an employer may dismiss an employee without payment of the end of service gratuity.
Instances of gross misconduct include the violation of written instructions pertaining to worker safety, employee intoxication while at work, and the disclosure of secret information regarding the employer.
For full information on this, and a whole lot more about the end of service gratuity, take a look at Articles 51, 54, 55, 56, 59, 61 and 72 of Qatar Labour Law.
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If you have any questions about how gratuity impacts you or your business, contact our team today to find out more.