As part of a promised labour market reform, Qatar yesterday issued a law making it mandatory for private companies to pay all their workers their wages through electronic transfer system.
The law is to be published in the official gazette and only after which it is to be implemented. The implementation is expected soon.
Companies will be given a grace period of six months to apply the new mode of workers’ salary payments, popularly known as the Wage Protection System (WPS).
However, the Minister for Labour and Social Affairs will have the authority under the new law to extend this grace period to another six months or more.
The law (Number 1 of 2015) amends some provisions of the Law Number 14 of 2004, known as the labor law. The new legislation was issued by the Emir H H Sheikh Tamim bin Hamad Al Thani yesterday, reports Qatar News Agency (QNA).
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Needless to say that until the new law has been brought into effect provisions of the existing legislation (Number 14 of 2004) will apply. From the provisions of the new law it is clear that not only banks but also other financial institutions such as exchange houses will be brought within the network of the WPS.
Actually, the new law incorporates amendments only of two main articles of the previous law (Articles 66 and 145). Article 66 talks of wage payments to company workers.
The amended portion says the wage must be transferred into a worker’s account with one of the financial institutions in the country “within a specified period”.
Article 145 of the previous law which stipulates punishments for not complying with its provisions has almost been retained.
It says company owners not transferring workers’ wages electronically in time will be liable to face a jail term not exceeding a month or a fine of QR2,000 ($549.2) to QR6,000 ($1,647.6) or both.
The Minister for Labor and Social Affairs has been asked by the law to frame and enforce executive regulations to help implement its provisions.
It is hoped that these regulations will talk in detail about which financial institutions shall be made part of the WPS and to what extent, and commission to be paid for their services, among other things.
The regulations, also known as bye-laws, are expected to specify the deadline by which companies must pay the wages and allowances due to their workers.
The law suggests that not only wages but all types of payments, including allowances and perks, must be paid to workers only electronically.
The labor ministry said earlier that this will allow it to create a national database that would record wage payments in the private sector and guarantee timely and full payment to workers their agreed-upon wages. The WPS, once in force, will end workers’ woes regarding delayed or non-payment of their wages and perks.