End-of-service gratuity is a critical financial benefit for Qatari employees. It compensates them for the dedication and service they provide during their employment.
This article explains the current rules and regulations surrounding Qatar labor law gratuity in 2024. It gives employees and employers essential knowledge on how gratuity is calculated, when it is due, and how to comply with legal requirements and eligibility criteria.
Contact our expert lawyers & legal Consultants in Qatar. Click the Whatsapp icon below.
Table of Contents
Qatar Labor Law Gratuity Eligibility and Calculation
Under Qatar’s Labor Law (Article 54), employees who complete at least one year of continuous service are entitled to an end-of-service gratuity. The gratuity amount is based on the employee’s final basic salary and total service period.
Upon termination of employment, whether due to resignation, completion of a contract, or dismissal for acceptable reasons, the employee becomes eligible for a gratuity payout.
Gratuity Calculation Formula
The standard formula used for calculating end-of-service gratuity in Qatar is straightforward:
Gratuity = (Number of years of service) × (Last drawn basic salary) × (Minimum of 21 days for each year of service).
For the first five years of service, employees are entitled to three weeks (21 days) of pay each year.
After five years, the employee is entitled to additional weeks of pay per year, depending on their agreement and circumstances.
Considerations for calculating or claiming gratuity
Employers and employees should be aware of several key factors affecting the final amount payable when calculating the end-of-service gratuity in Qatar.
These factors ensure that the process adheres to legal requirements while accounting for the specific circumstances of the employment. Below are some crucial points to consider when calculating or claiming gratuity under Qatar’s labor law.
- Gratuity is based only on the basic salary, excluding allowances or bonuses.
- Employers can deduct any debts the employee owes from the gratuity.
- Special provisions apply if an employee’s contract is terminated under Article 61 of the labor law, which could lead to a forfeiture of gratuity in cases of severe misconduct.
Gratuity During Unpaid Leave
Gratuity payments are still calculated for employees who take unpaid leave, though the unpaid leave period may not contribute towards their length of service for gratuity purposes.
However, repatriation costs and other final benefits still apply according to the employee’s length of service.
Legal Services Related to Labor Gratuity in Qatar
Our law firm provides comprehensive legal services tailored to Qatar labor law gratuity issues. Our experienced lawyer in Qatar offers the following:
- Gratuity Dispute Resolution: We assist employees and employers in resolving disputes related to calculating and paying gratuity.
- Legal Compliance Advisory: Our team advises businesses on compliance with Qatari labor laws, ensuring they meet all gratuity-related obligations.
- Gratuity Calculation Services: We help employers implement accurate gratuity calculation systems and provide advice on minimizing legal risks.
- Contract Reviews: We review employment contracts to ensure that gratuity provisions are clearly stated and comply with local labor laws.
Our goal is to protect the rights of both employees and employers by providing practical, informed legal advice on all matters related to end-of-service benefits.
Unpaid gratuity? Learn How to File Qatar Labor Law Complaint.
Find out more about the top labour lawyers in Qatar.
FAQs about Qatar labor gratuity
Conclusion.
Understanding the regulations surrounding Qatar’s end-of-service gratuity is crucial for employees and employers. Whether you are looking to calculate your entitlement or ensure your business complies with the law, having accurate knowledge is vital.
If you need legal support, our law firm is here to guide you through the complexities of Qatar’s labor law and gratuity entitlements.
Contact our lawyers in Qatar and get expert help. Click the WhatsApp icon below.
A law graduate specializes in translating complex legal topics into clear and actionable insights, empowering individuals and businesses to navigate Qatar’s multifaceted legal landscape.