GDP Per Capita: $87,661 ▲ World Top 10 | Non-Hydrocarbon GDP: ~58% ▲ +12pp vs 2010 | LNG Capacity: 77 MTPA ▲ →126 MTPA by 2027 | Qatarisation Rate: ~12% ▲ Private sector | QIA Assets: $510B+ ▲ Top 10 SWF globally | Fiscal Balance: +5.4% GDP ▲ Surplus sustained | Doha Metro: 3 Lines ▲ 76km operational | Tourism Arrivals: 4.0M+ ▲ Post-World Cup surge | GDP Per Capita: $87,661 ▲ World Top 10 | Non-Hydrocarbon GDP: ~58% ▲ +12pp vs 2010 | LNG Capacity: 77 MTPA ▲ →126 MTPA by 2027 | Qatarisation Rate: ~12% ▲ Private sector | QIA Assets: $510B+ ▲ Top 10 SWF globally | Fiscal Balance: +5.4% GDP ▲ Surplus sustained | Doha Metro: 3 Lines ▲ 76km operational | Tourism Arrivals: 4.0M+ ▲ Post-World Cup surge |
Institution

Labour Law and Qatarisation

An analysis of Qatar's labour law framework — covering the abolition of the kafala system, minimum wage legislation, worker rights reforms, and the Qatarisation programme for workforce nationalisation.

Legislative Framework

Qatar’s labour relations are governed primarily by the Labour Law (Law No. 14 of 2004, as amended), supplemented by a series of ministerial decisions and cabinet resolutions that have progressively reformed the employment landscape. The Ministry of Labour oversees enforcement, labour dispute resolution, and the administration of work permits and employment contracts.

The period from 2017 to the present has seen the most intensive phase of labour law reform in Qatar’s history, driven by international scrutiny related to World Cup 2022 construction, commitments made under the International Labour Organisation’s technical cooperation programme, and the broader objectives of the National Vision 2030.

Abolition of the Kafala System

The kafala (sponsorship) system, which historically tied a worker’s legal residency and employment status to a single employer-sponsor, was formally dismantled through a series of legislative changes enacted between 2020 and 2021.

Key reforms include:

  • Removal of the exit permit requirement. Workers are no longer required to obtain their employer’s permission to leave Qatar. The previous exit permit system was replaced by a notification mechanism.
  • Job mobility. Workers may change employers without obtaining a No Objection Certificate (NOC) from their current employer, provided they comply with notice period requirements. This represents a fundamental shift from the employer-tied model that characterised the kafala system.
  • Contract-based employment. The employment relationship is now governed by the terms of the employment contract and applicable law, rather than the discretionary authority of the sponsor.

These reforms were developed in collaboration with the ILO, which maintained a project office in Doha from 2018 to support the implementation process.

Minimum Wage

In March 2021, Qatar became the first country in the GCC to introduce a non-discriminatory minimum wage applicable to all workers, regardless of nationality or sector. The minimum wage is set at QAR 1,000 per month for basic salary, with additional allowances of QAR 500 for housing and QAR 300 for food where the employer does not provide these directly.

The minimum wage applies to all private sector workers, including domestic workers, and is enforced through the Wage Protection System (WPS), an electronic salary transfer mechanism that enables the Ministry of Labour to monitor compliance in real time.

Worker Welfare Standards

Qatar has introduced a comprehensive set of worker welfare standards, many of which were accelerated during the World Cup preparation period:

  • Heat stress protections. Outdoor work is prohibited during peak heat hours (10:00 a.m. to 3:30 p.m.) from 1 June to 15 September. Additional provisions require rest breaks, hydration, and access to shaded areas.
  • Accommodation standards. Employer-provided worker accommodation must meet minimum standards for space, sanitation, ventilation, and amenity provision, as prescribed by ministerial decision.
  • Wage Protection System. All employers are required to pay salaries through the WPS, which records salary payments electronically and enables the Ministry of Labour to identify and investigate delayed or incomplete payments.
  • Dispute resolution. Labour dispute committees have been established to expedite the resolution of employment disputes, with mechanisms for emergency intervention in cases of unpaid wages.

Qatarisation

Qatarisation is the national workforce nationalisation programme that sets targets for the employment of Qatari nationals in the private sector. The programme is a core component of the Human Development Pillar of the National Vision 2030, which seeks to develop a productive and skilled Qatari workforce capable of sustaining economic growth.

Sectoral quotas are set by the Ministry of Labour and vary by industry. Priority sectors include banking and finance (where Qatarisation targets have historically been the most stringent), energy, telecommunications, insurance, and government-related entities. Companies that fail to meet their Qatarisation obligations may face restrictions on work permit approvals and access to government contracts.

Supporting mechanisms include government-funded training programmes, salary subsidies for Qatari hires in the private sector, partnerships between educational institutions and employers, and the National Human Resources Development Programme.

The programme reflects a tension common across GCC states: the need to develop national human capital while maintaining the flexibility of a labour market that relies heavily on expatriate workers, who constitute the vast majority of the private sector workforce.

Employment Contracts and Termination

Employment contracts in Qatar must be in writing and specify the terms of employment, including salary, working hours, leave entitlements, and the duration of the contract (fixed-term or indefinite). Contracts must be registered with the Ministry of Labour.

Termination provisions require employers to provide adequate notice (typically one to two months, depending on the length of service) and to pay end-of-service gratuity. Arbitrary dismissal — termination without valid cause — entitles the employee to compensation. The labour law provides specific protections against dismissal on grounds of union activity, pregnancy, or the filing of a legitimate complaint.

International Commitments

Qatar has ratified several core ILO conventions and maintains an ongoing technical cooperation programme with the ILO. The country has committed to further reforms in areas including freedom of association, collective bargaining, and the establishment of independent worker grievance mechanisms. Progress is subject to periodic review under the ILO’s supervisory framework.