Photo by Abdul Basit © The Peninsula
The introduction of minimum wage and removal of No-Objection Certificate requirement to change jobs for employees will make Qatar more economically competitive in the region and internationally and accelerates economic diversification.
These labour reforms will enhance global competitiveness of companies in Qatar and will ensure their conformity with international labour regulations and best practices, Yousuf Mohamed Al Jaida, Chief Executive Officer, Qatar Financial Centre (QFC) told The Peninsula.
“Besides safeguarding expatriates rights, this law also supports Qatari companies by enhancing their global competitiveness and ensuring their conformity with international labour regulations and best practices,” Yousuf Mohamed Al Jaida said yesterday in an interview.
“We also believe that these steps will have a positive impact on the Qatari economy, as these steps are a declaration of Qatar’s firm commitment to developing a first-class system that suits the needs of both employers and expatriate workers in the labour market,” he added.
These reforms demonstrate Qatar’s commitment to establish a modern system that ensures workers welfare and protect their rights.
“The new minimum wage and the removal of the non objection certificate is evidence to our government’s commitment to establish a first-class system that strengthens the labor laws in the country and ensures the protection and the rights of all workers in the labour market.
Setting a new minimum wage has also an overarching objective to boost incomes and improve the welfare of the workforce while also protecting human rights, reducing inequality and promoting social inclusiveness,” said Yousuf Mohamed Al Jaida.
He added that these reforms will also accelerate the vast reforms that are introduced to strengthen labor laws and increase protection of the workforce, which has positioned Qatar as a leader or one of the leaders in the global labor market. It also reflects our compliance with international labor laws and practices, which are integral factors for investors looking to expand overseas and setting up their businesses in a healthy business ecosystem.
According to QFC chief, the law represents also a momentous step towards Qatar National Vision 2030, as it has a direct impact on all the social, human and economic pillars which contribute to Qatar National Vision 2030. It also complements the government’s strategy, plans and ongoing efforts in creating a highly competitive business environment which fosters talented workforce.
“It is important to attract highly skilled and talented workforce as it would contribute and further cementing the country’s strategic position as a preferred investment destination for foreign investors in the region and the world where businesses can easily set up in a transparent business environment,” said Al Jaida.
“It also contributes to diversifying the avenues of investments in the Qatari market while protecting workers’ rights, which is a priority for Qatar. This has not only been reflected in this new law, but also in previous labor reforms,” he said.
He added that Qatar will not stop after these reforms and the country will continue to roll out measures which will ensure workers’ welfare. “Qatar is after real reforms, wants to open up its business environment and become more conducive for foreign direct investment by introducing these labour reforms. So I think it’s a very positive move, but also in line with previous moves that we’ve done. In the past two years, this is a continuation of reforms that the government will continue to practice and will continue to produce up until 2022 and beyond,” he added.
He clarified that these reforms are not just in favour of employees but they will also support companies to grow further because the reform allows for a more open business environment.
“The reforms allows for a more open business environment, which allows for easier attracting talents and skills and better workforce. So it has a positive impact on both fronts- the employee and the employer. According to Yousuf Mohamed Al Jaida, Qatar’s move towards international best practices will also play crucial role in attracting foreign capital in the country. He added that Qatar is moving towards modern legal system and closer to the international best practices in accordance with International Labour Organization. “So it’s a step for us to become closer and to act in accordance with international law best practice,” he said.
He added that these reforms will have positive long term effect on Qatar’s labour market.
“We are allowing a better platform and more open platform to be able to attract a better workforce and to enable the existing workforce to work more freely and come to the private sector more positive,” he added.
“This lessens a lot of bureaucracy when it comes to the movement of labour, again, this is in accordance with international best practice. The impact will be positive on the business ecosystem. The impact will be positive on the welfare of the workforce and the impact will be positive on the economy overall. So the effect of that will be not witnessed immediately, but it will allow for a better conducive, open, transparent business environment and it impacts positively both the worker,” Jaida added.
The reforms will play crucial role in attracting talented workforce to Qatar from across the world.
“These reforms will definitely allow more flexibility when it comes to choosing your career, allow you to allow a more competitive environment when it comes to moving jobs, climbing up the ladder, the career ladder. So that’s one aspect. But it would also allow companies to attract better workforce, attract better talent, and allow companies to basically become, to allow companies to reduce bureaucracy when it comes to hiring a best in class talent to pursue their business growth opportunities,” he said. He added that yesterday’s reforms are one step amongst many steps towards liberalizing Qatar’s labour market and towards modernizing its legal system and allowing the labour market to become in accordance with International Labour Organization reforms as well. It is a continuous move that will continue into the future.
“Qatar had announced early on to become a beacon of light when it comes to labor reforms in the region. So that’s one step into that direction. But again, the labor market and the GCC is quite different than international best practice. But we’re moving into that direction. And I think these two labour reforms speak of a positive movement towards that direction. And, we will continue to, introduce labor reforms, which will allow our labour market to become, in par with developed markets and best labor markets in the region and globally,” he said.
