QUESTION: I have been newly appointed as the HR manager in a company. The company owns a camp for workers in the Industrial Area. I found lapses on the management’s part to comply with the requirements and I came to know that there will be inspection from certain concerned departments. As per the Labour Law, what is the role of labour inspectors? Will they issue prior notice before inspection? Please advise.
YU, Doha
ANSWER: In order to ensure legal compliance, labour inspectors shall have authority to enter the places of work without prior notification, for inspecting the registers, books, files or any other documents related to the workers. They may inquire from the employer or his representative or any of the workers individually or in the presence of witnesses on any of the matters related to the implementation of labour law and regulations. They are also empowered to inspect the residence of the workers for assuring their compliance with the required health conditions.
Criminal case for bounced cheque
Q: My friend had borrowed some amount from a person and he issued a cheque as a guarantee for repayment. He left Qatar and the issued cheque got bounced because of insufficient funds. We came to know that the lender has filed a criminal case against him. What is the legal provision? On discussion with my friend, we have decided to make repayment by selling the car owned by him. How can I sell the car owned by him? Please advise.
ON, Doha
A: Issuance of a cheque without sufficient balance in the bank account is a crime. A complaint for cheating against the signatory of the cheque can be lodged. According to Article 357 of the Qatar Penal Code, whoever draws in bad faith a cheque without sufficient funds or who, after giving the cheque withdraws all or part of the funds, so that the remaining balance is insufficient to cover the amount of the cheque, or gives an order to the drawee to stop payment, or deliberately writes or signs the cheque in such a manner as to make it dishonour shall be sentenced to imprisonment or fine or both. The criminal case pertaining to a dishonoured cheque shall be terminated either by payment of the value of the cheque or by withdrawal of the complaint following the occurrence of the crime and prior to the issuance of a final court judgment. Accordingly, the criminal action shall be ended/terminated upon withdrawal of the case by the complainant or upon payment of the cheque value subsequent to the perpetration of the crime but prior to the issuance of a final verdict.
In order to sell the car, ask your friend to prepare a special power of attorney authorising you to sell the car which should specifically state the purpose and it should include all relevant details to identify the car. The power of attorney prepared outside Qatar for use in Qatar requires to be notarised, attested, and consularised to the level of the Qatari embassy in the country of origin, before it is re-attested by the Ministry of Foreign Affairs in Qatar.
Arbitration clause in agreement
Q: We included an arbitration clause in the agreement with our sub-contractor and now there is a dispute on the payment schedules. It was agreed as per the agreement to appoint the arbitrator by court. They have approached the court for the pending payments. Will the court consider the case? How is the arbitrator appointed and who will fix his remuneration? Please advise.
SI, Doha
A: As per Article 190 of the Civil and Commercial Procedure Law, any agreement referring disputes to arbitration must be in writing. Where there is an arbitration clause in any agreement and a party to that agreement has begun substantive proceedings in the court, the other party may raise objection on the basis of the arbitration clause. Generally, the court stay proceedings as there is arbitration clause.
Upon the request of the party, the court shall appoint the arbitrator and the parties are able to agree on the arbitrators’ costs, but where there is no agreement, the court is able to determine such costs. Article 210 of the procedure code provides that remuneration of arbitrators shall be specified by agreement of the litigants thereof in the arbitration agreement or in a subsequent agreement, otherwise they shall be specified by the court primarily competent in hearing the dispute, in virtue of a motion of one of those concerned, in the presence of the rest of them or in their absence after being served summons to appear. The decision of the court shall be final.
A punishable act over parking row
Q: I do not have an assigned vehicle parking lot at my residence. Usually, I park my car on the roadside where parking is allowed for the public. Last week, on my way back from office, I found the space was occupied by some other car. I asked the driver to move his car, but he refused to do so. On that particular day, I was really exhausted after work and, out of anger, I let the air out of a tyre of that car. Now, I have received a summons from the court and I understand that the owner of that vehicle has lodged a complaint against me. Kindly advise me the consequences.
JS, Doha
A: The said act committed by you attracts the provisions of Article 389 of the Penal Code, which covers instances such as destructing, damaging or spoiling, on purpose, other’s movable or immovable properties, or making them unusable, invaluable, useless or invalid. The punishment prescribed under the law is either imprisonment for a period of three years, or a fine of no more than QR10,000, or both.
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LEGAL SYSTEM IN QATAR
The court may, upon the application of any partner, approve the dissolution of any Simple Partnership, Joint Partnership or Joint venture company if reasonable causes justified the same. Any condition depriving partner from exercising such right shall be null and void. If the reasons justifying dissolutions resulted from the acts of partner, the court may order the dismissal of the partner from the company; and in this case, the company shall continue to exist among the other partners. The entitlement of dismissed partner shall be assessed according to its value on the day of the dismissal judgement, and shall be paid to him in cash. The dismissed partner shall not have any entitlements in the company’s rights accruing thereafter, except to the extent that such rights accrued out of transactions preceding the reasons of his dismissal. The court may also order the dissolution of the company at the request of a partner in the event of failure on the part of the other partner to fulfil his undertakings.
According to Article 295, if the Public shareholding company losses half of its capital, the members of Board shall call for an Extraordinary General Assembly meeting to consider the continuation or dissolution of the company before the duration fixed in its Articles of Association. If the Board of Directors fail to convene the Extraordinary General Assembly, or if a resolution on the matter could not be passed, every interested party may apply to the court to dissolve the company.
Where the shareholders in Public Shareholding Company are reduced more than the required limit, the company can be transferred into Limited Liability Company and the remaining shareholders shall be responsible for the company debts. In the event that the number of shareholders in a company falls below the minimum and remains at this level for one year, every interested party may apply to the court to dissolve the company.
The Limited Liability Company shall not be dissolved upon shareholder’s withdrawal from the company, death, attachment thereupon, declared bankruptcy, or insolvency, unless the Articles of Association stipulates otherwise.
As per Article 298, if the losses of the Limited Liability Company reached half the capital, the directors shall, within thirty days from the date of losses, shall refer the matter of reinstating the capital or dissolution of the company to the General Assembly. In case of dissolution of company, a resolution approving the dissolution is required to be passed by majority vote similar to the requirements for the amendment of the Articles of Association.
