Qatar Labour Law: Amendment to Article 66

Analysis

Article 66 of Qatar Law No 14/2004 (Qatar Labour Law) was recently amended by Qatar Law No 1/2015 (the Amendment). Whereas the article previously required that salaries (Salaries) and any other sums to which an employee is entitled under his/her contract of employment were paid to an employee's account at a bank agreed upon between the parties, or to an agent appointed by the employee, payment will now need to be made directly from the employer's local Qatari account into a Qatari account in the name of the employee. The new system effectively creates a Qatar to Qatar based transaction between the employer and employee. The Amendment applies to employees whose employment is governed by the Qatar Labour Law.

Employers with internationally mobile employees who are sponsored and employed in Qatar whilst on assignment from their home country will need to consider carefully the implications of the Amendment on the payment of these employees' salaries during that period.