In a landmark move, His Highness Sheikh Tamim bin Hamad Al Thani, the Amir of the State of Qatar, enacted Law No. (12) of 2024 Regarding the Nationalization of Jobs in the Private Sector, as announced on the official Amiri Diwan website on Sept. 1. This law will take effect six months after its publication date of Oct. 17 in the Official Gazette.

As emphasized by the Ministry of Labor, the law aligns with Qatar National Vision 2030, particularly within the pillar of human development, by facilitating strategic investments and creating opportunities for employment and training for Qatari citizens. It also supports the Third National Development Strategy, which aims to effect a fundamental transformation toward a more productive labor market, focusing on high-skill jobs. This transformation will be achieved by leveraging a highly skilled Qatari talent pool while also attracting foreign talent with advanced skills.

The Mechanics of Workforce Nationalization

Under the law, nationalization of jobs is systematically implemented. Priority for employment, training, and qualification will be given to Qatari nationals actively seeking work, known as Tier 1 candidates. When Tier 1 candidates are unavailable, the next preference will be given to the children of Qatari women (Tier 2 candidates), all within the framework of policies, plans, and programs to be established by the Ministry of Labor.

The Ministry of Labor will specify the roles reserved for Tiers 1 and 2, detailing the requisite qualifications and training programs. Furthermore, the Ministry of Labor’s designated administrative unit will maintain a comprehensive registry of individuals in these tiers. Registration is a prerequisite for employment under this law, with certain exceptions.

To incentivize nationalization, financial incentives may be offered to eligible individuals in Tiers 1 and 2, supported by funds allocated by the Ministry of Finance.

Targeted Entities and Exceptions

The law applies to the following targeted entities:

• Employers who are natural persons managing private establishments registered in the commercial register.
• Commercial companies operating in the state, whether state-owned, state-participated, or privately owned.
• Private nonprofit institutions, sports institutions, associations, and similar entities.

However, the law exempts the following:

• Companies formed by Qatar Energy or the latter participating in their establishment or the participation by Qatar Energy in such companies.
• Companies executing agreements for exploration and production sharing, agreements for the development of fields and production sharing, and joint venture agreements in the field of petroleum operations and petrochemical industries.

The Council of Ministers, upon the Minister of Labor’s recommendation, may modify the law’s applicability, either broadening or limiting its reach to certain entities.

Ministry of Labor’s Role

The Ministry of Labor is tasked with:

• Developing a comprehensive plan for the nationalization of jobs in the private sector by classifying entities based on size, workforce, and job types, with policies for training, employment, qualification, and university scholarship programs. This plan should be approved by the Council of Ministers.
• Specifying, following the approval of the Council of Ministers, the jobs that will be limited to Tier 1 and Tier 2 as well as their qualification and training programs.
• Submitting to the Council of Ministers an annual report with respect to the Qatarization according to the Law.
• Issuing standardized contract templates for Tier 1 and Tier 2.

Compliance

To comply with the law, targeted entities must:

• Inform the administration of vacancies, job requirements, remuneration, and timelines within a month of a position’s vacancy, creation, or availability of any kind.
• Provide the administration with data on Tier 1 and Tier 2 appointments, as well as any information or documents required by the administration in accordance with this law within 60 days of hiring and biannually thereafter.
• Implement the decisions to be issued by the Ministry of Labor regarding the definition of jobs and the necessary qualifications and training.

Incentives for Compliance and Sanctions for Noncompliance

Targeted entities compliant with the Ministry of Labor’s directives, as per the law, will be eligible for benefits, facilities, privileges, and incentives, as determined by the Council of Ministers.

In case of noncompliance, the administration may issue warnings, suspend transactions with the Ministry of Labor for a period not exceeding three months, impose financial penalties, and, upon the Minister of Labor’s consent, publicly name offenders on the Ministry of Labor’s website in the event of repeated offenses.

Fraudulent acts or misrepresentation to gain undue advantages under this law will attract severe penalties, including imprisonment for up to three years and fines of up to 1 million Qatari riyals.

Preparing for Effective Implementation

The next steps for targeted entities include preparing for the law’s implementation by assessing its implications for their operations and ensuring compliance when the law becomes effective. The Minister of Labor will release further directives, including standardized contract templates for the nationalization of jobs, which will be obligatory for targeted entities.

Conclusion

By aligning the goals of Qatar National Vision 2030 with tangible policies and incentives, the law is set to transform the private sector into a nurturing environment for national talent, thereby contributing to a resilient and self-reliant economy. The forthcoming directives from the Minister of Labor, including standardized contract templates, will provide the necessary guidance to facilitate a smooth transition into this new regulatory environment.

Ahmad Anani and Jihane Rizk are attorneys with Charles Russell Speechlys in Doha, Qatar. Sevcan Aydemir is an attorney with Charles Russell Speechlys in Zurich. © 2024 Charles Russell Speechlys. All rights reserved. Reposted with permission of Lexology.