What You Need to Know About Banned Companies

What You Need to Know About Banned Companies

Qatar’s business and professional landscape is ever-growing, ever-thriving. More and more professionals are flocking to the country every year, as lucrative job opportunities pop up each season with attractive packages and opportunities for career growth. As such, labour laws in Qatar have to be strictly implemented, and companies who do not comply with the rules and regulations face costly consequences both financially and non-financially.

When companies flout the biggest labour laws, they can be banned as a consequence of poor labour systems. For instance, in November 2018, around 12,000 companies were banned for disobeying labour regulations and were required to commit to full labour overhauls. This serves to prove that the country is keen on paying meticulous attention to the plight of its migrant workers in order to preserve the good working conditions in every workplace.

In the first half of 2018 alone, the government of Qatar conducted more than 19,000 labour inspections and dutifully created strict measures to prevent contract substitution by utilising electronic contracts. When the labour laws are violated—such as demanding workers to commit to extra hours or paying less than the determined minimum wage—the workers are welcomed and encouraged to report these incidents so that the Ministry of Administrative Development, Labour and Social Affairs can conduct an investigation.

According to the Ministry, “Working hours in Qatar are strictly regulated and recruitment fees are illegal. Where violations of the law occur, workers are encouraged to report these and have multiple mechanisms to do so. This is also backed up by the ministry’s labour inspection teams who regularly investigate employers who are suspected to be in breach of the law.”

Reasons for a breach in these laws may include end of service allowances, non-payment of leave salaries, delayed payment of wages, and even for companies who operate without dutifully opening an office. Once a company is blacklisted, they can no longer recruit new workers, nor can they bid for any government tender. They also cannot apply for warehouses until further notice.

In order to see if an establishment is banned, the status can be checked online through the e-services portal of the Ministry of Administrative Development, Labor and Social Affairs (MADLSA). The service will also list the reasons for the establishment’s ban in violation of Law No.14 of 2004.

Getting your company banned by the government not only brings you unnecessary stress on top of the costly consequences, but it also keeps your company from continuing its regular day-to-day operations efficiently. It also reduces trust in shareholders and investors, as well as sullies the brand reputation of the company. To make sure that your company is always in keeping with the provisions of the labour laws, and to stay in the good graces of the various ministries, it’s always prudent to have a trusted business constancy company to help you with all of the necessary submissions and requirements that you need.