What Severance Pay Rules Must Employers Follow in Qatar?

Which Employees Qualify for Severance Pay?

• Employees working under the Qatar Labour Law with at least one full year of continuous service generally qualify for end-of-service gratuity.
• Qatari nationals covered by separate pension or social insurance schemes may follow different end-of-service rules outside the Labour Law.
• Domestic workers and some categories such as casual or temporary workers can be subject to special regulations or exclusions.
• Employees on fixed-term or unlimited contracts are usually entitled to gratuity when employment ends lawfully and not for a disqualifying reason.
• Workers dismissed for reasons specified as gross misconduct under the Labour Law can lose their right to end-of-service gratuity.
• Employees whose contracts provide more generous severance terms than the statutory minimum are entitled to the higher contractual amount.

What Are the Legal Timelines for Paying Severance?

In Qatar, the Labour Law requires you to settle all outstanding wages and end-of-service gratuity promptly upon termination. In practice, authorities expect payment within a few days and no later than the legal deadline for paying final wages after the end of employment. You should aim to process calculations before the employee’s last working day so there are no delays. Keep written proof of payment (bank transfer slips, signed receipts) in case of inspection or dispute. If the employee leaves the country, make sure all dues are cleared before exit formalities are completed.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly or on time in Qatar, you risk complaints to the Labour Ministry and potential court claims. Inspectors can review your payroll records, and non-compliance can trigger administrative fines, orders to pay arrears, and reputational damage with regulators and employees.

• Late or underpaid gratuity can lead to court orders to pay the outstanding amounts plus possible compensation.
• Labour authorities may impose financial penalties for breaching payment and record-keeping obligations.
• Persistent non-compliance can affect your ability to renew company registrations, visas, or work permits.
• Employees may file disputes that consume management time and legal costs.
• Public or internal perception of unfair treatment can harm your employer brand in a small, reputation-sensitive market.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (EOR) such as the model described at https://www.playroll.com/employer-of-record does not remove the need to follow Qatar’s severance rules. In most EOR structures, the EOR is the legal employer on paper, but your company directs day-to-day work and effectively controls the employment relationship. Qatari authorities can look at the substance of the arrangement and expect statutory end-of-service gratuity to be honored. Your contract with the EOR should clearly allocate who funds and calculates gratuity and how local law changes are tracked. You remain exposed to commercial and reputational risk if severance is mishandled, even where the EOR is the formal employer.

Be 100 Percent Compliant in Offering Severance with Playroll

Playroll helps your team navigate Qatar’s end-of-service rules by mapping each worker’s status against the Labour Law and any applicable exemptions. We track length of service, basic wage, and contract type so you can forecast gratuity liabilities and avoid surprises at termination. Our approach emphasizes clear documentation of termination reasons and timelines, reducing the risk of disputes over whether gratuity is owed.

With Playroll, you can centralize global severance practices while still respecting Qatar’s specific requirements. We coordinate with local experts to keep your templates, policies, and EOR arrangements aligned with current law. That means your HR and finance teams spend less time decoding regulations and more time making confident, compliant decisions when roles change or contracts end.