Introduction
Empowerment is a word that has taken to the minds of many since the 1950s. Empowerment has been defined as the power or ability given to someone to do something. Thus, employee empowerment is about giving employees the power and authority to make decisions that will, in turn, help the organisation or business in terms of growth and seamless management. While this ideology has been widely accepted in the world of business and economics, the issue of freedom of companies to empower their employees through some practices has been regulated in some parts of the world. This has been done in a couple of ways, which the paper aims to look into with a special focus on the Arabian Gulf labour laws(Belloc, 1967). The paper also pays keen attention to the impact on the Qatari environment. Among other pertinent issues, this paper further seeks to evaluate how limiting the Qatar labour laws are to expatriates. How companies can promote employee empowerment conscious of the existing Qatar labour laws, is an issue that will be looked into, and recommendations will be made.
The general position of the labour laws
The Qatar labour laws put the interests of their nationals before those of foreign employees. For instance, Article 18 of the Qatar labour law expressly stipulates that priority shall be given to nationals (Crystal, 2011). Additionally, the above provision provides that non-Qatari workers shall be employed in case of need.
Considering the above provision, it becomes apparent that such a law is discriminatory and limiting. If a company hires based on qualifications, and it turns out that the biggest composition of its employees is non-nationals, its ability to empower the employees will be limited. This is because the company will not pass a compliance test if the government were to assess its employee composition before allowing any empowerment programme. Despite the initiatives that might be taken by key players such as employees and companies, discriminatory laws will always be used to prevent all-inclusive empowerment programmes, in which case, non-citizens will be disadvantaged.
The Gulf Cooperation Council
Qatar is one of the states that are under the Gulf Cooperation Council (GCC). The Arabian Gulf has a total of 6 states namely Kuwait, Oman, Qatar, The Kingdom of Saudi Arabia, Bahrain and the United Arab Emirates (The Charter adopted by the GCC Supreme Council (Leaders of the GCC States) during the 14th summit in December 1993 in Riyadh, Saudi Arabia, 1995).
Over the past 20 years, these states have witnessed massive growth through a robust outburst of economies riding on the wave of development that is mainly attributed to oil and gas reserves present in these states. This economic growth has translated to the attraction of keen investors who seek to benefit from the vibrant economy in the region. Initially formed in 1981 in Saudi Arabia under the GCC charter, the GCC has supported and continued to strengthen the relations among member states. The basic objectives of the formation of the GCC was to allow strong interconnection between their people, better relations between the member states which was to be orchestrated through the formulation of similar regulations in various fields (The Charter adopted by the GCC Supreme Council (Leaders of the GCC States) during the 14th summit in December 1993 in Riyadh, Saudi Arabia, 1995). Some of the common interests are tourism, mining, customs, economy, agriculture, and legislation, among others. This was inspired by the thought of a common destiny among member states.
Since the economic depression of 2008, the GCC saw its members enjoy the growth of an average of 24% for half a decade after those trying economic times. This economic growth meant more human labour that is controlled by the GCC labour laws. The most noticeable aspect of GCC member states' labour laws, such as Qatar, is that they are restrictive and discriminatory. They create a working environment that is hostile to expatriates working or investing in any of the GCC states. All GCC states have uniform laws that investors and employees must adhere to. These laws not only place foreign employees in a disadvantaged position but also limit the ability of the employees to empower their employees to become more decisive and productive.
It would be an intelligent move by any employer to invest in empowering employees whose working duration is not threatened by the relevant laws and regulations. This is because it would not make economic sense to empower a foreign employee whose job is a privilege rather than a right. No matter how qualified or experienced an employee might be, the fact that the Qatar labour laws don't give priority to such an employee limits the ability of companies to empower their employees.
In the UAE, for instance, the ministerial decree No. 176 of 2009 restricts the sacking of a UAE citizen under “Restricting the Dismissal of UAE Nationals” (Ministerial Decree). This decree requires that priority be given to UAE nationals while downsizing a company. Therefore, foreign workers bear the highest risk of being dismissed. It would make more sense for a company to prefer empowering employees who are nationals of Qatar, despite their qualifications, rather than those who have migrated to Qatar. By so doing, the company would avoid the loss of those employees who have undergone empowerment. Qatar's labour laws paint a discriminatory picture and may be subject to abuse. Those laws may be used to deny employees equal working opportunities based on qualifications and merit.
Apart from individual employees, companies are also affected by these laws, and while setting up base in any of the GCC countries, they have to consider cooperating with local businessmen to be able to safeguard their interests.
In Saudi Arabia, under the kingship of the new king Salman, the focus is on flushing out the expatriates working there to create enough jobs for the local Nationals. Thus, there has largely been no renewal of contracts with the expatriate labour force after the expiration of work permits and contracts. This, again, however tactical it might seem, brings the aspect of discrimination. If a more qualified foreigner is dismissed and his/her position is taken over by an amateur, that becomes a drawback to that organisation or company. Therefore, Saudi Arabia is moving towards a future without expatriate workers with the aim of securing jobs for graduates in the kingdom.
However, even if the drafters of the law formulate regulations in good faith, some of the laws and regulations play a major role in inhibiting the capacity of companies to empower foreign employees. Similarly, the laws have the same effect on expatriate companies.
There has been a lot of exploitation of workers in the GCC countries, which are backed by the law. The kafala system is one of such laws (Malit and Naufal, 2016). This system regulates the residency and employment of workers. The system has faced its fair share of criticism. This is because it was designed to look like a modern slavery system (Begum, n.d.). The system, which is under the GC, C, recruits workers on behalf of the citizens for a fee (Vaidya, 2006). The recruited worker is then handed over to the citizen, who takes over the financial responsibilities and also bears full legal responsibility
This law has been abused many times, and international human rights observers have come in to speak up for those afflicted. The GCC members had purposely excluded domestic workers under their labour law, in that even an employer cannot empower an employee. Under section 3 of the Qatar Labour Code No. 14 of 2004, domestic workers have been excluded. This position is reflected in section 2 of the Bahrain labour code No. 23 of 1976, Kuwait labour code of 1995 under section 2, under section 7(b) of the Saudi Arabia labour act 2006, under section 3 of the UAE federal act No. 8 of 1980 and in Oman under section 2 of the labour code of 2003.
It has been argued that domestic workers are like other employees with similar and equal rights. However, when laws expressly exclude them from the protection, they cannot, intern claim any entitlement to empowerment programmes.
The impact of Qatar labour laws on the freedom of companies to exercise their power on employees’ empowerment practices
From what the paper has established above, the Qatari labour laws can be a limiting factor for companies in the exercise of their power to empower their employees. The kafala system is also to blame. (Kotiswaran, n.d.) The kafala system, which is also known as the sponsorship system, has widely attracted criticism before its reform and after its reform. The system was adopted by all the GCC countries. However, Qatar has been in the spotlight for failing to amend it. Before its amendment in 2015, the Qatar sponsorship stipulated that:
1 Expertriates were only allowed to work under sponsorship.
2. The right to alter sponsors was not directed by the law, and that was left to the choice of the sponsors.
3. Once sponsored, the employee cannot work for another employer unless a special permit is granted.
4. Sponsorship can be changed only after an agreement between the old and new employers.
5. Exit permits are required.
6. Employees who leave without a certificate of No Objection(NOC) or letter of release would be required to exit the country for 2 years, only after which they would return and work for another employeeMinisteriall Decree).
Sharp criticism of these laws has been witnessed since 2009, and it has seen the government has tried to amend the law with regard to expatriates’ regulations on entry, residence, sponsorship, and departure. The Qatar Law No. 21 of 2015 was issued to amend a previous legislation of 2009. This law later came into action in late 2016, and it came with some new stipulations, among which; that, unlike in the previous law, jobs would be contract-based (Kinninmont, n.d.). An employee's approval by a former employer if recruited by another is now longer a requirement. An exit permit is also not required, but an employment contract needs to be approved by the state.
The requirement that non-citizens employed in Qatar had to wait for two years before a renewal of their contract upon the expiry of their contract was abolished. Expatriates are now required to sign job contracts before travelling to Qatar. The sponsorship system is somehow scrapped, thus the residence and employment of the expatriates can be entirely contract-based. Contracts can now be signed for two or five years.
With the changes in the laws, the working environment is far better than it used to be. Thus, companies can now use the changes to their advantage and start empowering even the non-citizens who are lawfully working in their companies. With the changes, employees have the mandate to choose what jobs they can do and who they can work for. The aspect of volition is key in decision-making and is safeguarded under these new laws, unlike before, where the employee’s decision-making was inextricably bound together with those of their sponsors in matters that regarded their lives.
These laws were revised from 2010 to 2016 and have, to some extent, helped shape the decision-making processes (Dept, 2015). In 2010, the Emir of Qatar amended various regulations to allow expatriates 100% ownership of companies. This then meant that the decision of a company could fully rely on its owners. They can then seek skilled workers under the guidelines provided by law. Laws are at the core of the freedom of employers and companies to empower their employees for reasons discussed earlier in the paper. One of the reasons they have to consider is the fact that empowering a Qatar employee would make more economic sense since they are less likely to be affected when downsizing a company.
The role of the Qatar labour laws in dominating a control-oriented culture that prevails and affects the decision-making styles of expatriates working there.
Culture has been defined as “a set of morals, values, attitudes, beliefs, and meanings that are shared by a group or organisation”. In Qatar which is prevailed by the Muslim culture and governed by the Muslim law (Qatar, 2015). Studies have shown that of the total Qatar population, only 30% are of Qatari origin, who are mostly Sunni Muslims. 70% of the population is made up of expatriates who basically are there for employment and are allowed to stand by their individual religious beliefs. It’s also important to note that 40% of the population is Arab (Di Tata, 2008). The business practices are based on the Arabic customary business practices. They include the problem-solving role, which is embedded with the leader’s vision, insight, and instinct (Engel and Singer, 2008).
The motivation is arrived at through pay, leadership for others, loyalty, concern for conventionality, and status. The decision-making process is mainly orchestrated through a top-down, leader-centric channel with clear goals for subordinates. The superior-subordinate relations are hierarchical in that what the subordinates do is to offer obedience and loyalty (Pintelon and Puyvelde, 2006).
The Qatar development strategy 2011-2016 was meant to encompass the achievement of the Qatar Vision 2030. It explains about fostering a capable and motivated workforce. This is quoted in its Vision 2030 document: “Qatar must choose a development path that is compatible with the targeted size and quality of expatriate labour that is determined by Qatar’s leadership and people (Qatar National Development Strategy 2011~2016, 2011).” To achieve more development and economic growth, Qatar has been looking for more ways to encourage more Qataris to enter the labour market. They intend to achieve this through the price and market-grounded instruments, thereby linking wages to productivity.
Qatar is concentrated on boosting its labour force productivity. Though the output of one worker compares to a good level globally, the state understands the value of strengthening the labour force (Thompson et al., n.d.). However, it’s important to note that the law is somewhat inclined to strengthen the Qatari workforce. This is mainly through sensitising the private sector. The private sector is not a very big share of the national economy, but it employed 80% of the total workforce as of 2009. Out of all the workers employed in the Qatari private sector, only 5% are of Qatari origin (Kamrava, n.d.). The government is focused on improving the number of the Qatari workforce, thus, it focuses on legislation. This is seen as a bid to empower employees (Belloc, 1967).
Decision-making styles and stress vary across the business world, and empowerment has continued to be seen as a management fashion that can be used to change the working environment, which will yield more output from the workers (Verma, 2009). It can be seen that in Qatar, through the leadership of the Emir, the government is trying to help empower the labour force so that it can bring forth better productivity (Qatar National Development Strategy 2011~2016, 2011). The labour laws before did not recognise the expatriate workers, and thus this was mainly due to the culture-oriented society Qatar was and still is. Qatar then realised that recognising the expatriates in labour laws would be better for its future and the economic goals that it has in store (Tan et al., n.d.). This will help the expatriates to be empowered and become more motivated. Empowerment is not expressed in the law, but through some indirect legislations which boost the calmness of the working environment. One can tell that Qatar is helping empower experts even in the face of the bd laws towards the native Citizens. The state is not blind to the fact that there exist foreign investors and employees who offer informal skills.
What companies in Qatar should do to enhance their employee empowerment practices, increase the level of trust between business owners and employees, to enhance decision-making.
The year 2010 was a significant year for expatriate business owners. This is because it was only from this year that the expatriate investors were allowed to fully own their businesses. Many other laws and legislations have been put in place to ensure a safe and conducive business environment. The fact that the employer is no longer required by law to let an employee go and work for another through a letter removes the barrier that would have caused mistrust between the employer and the employee (Decision management, 2017). This is now a loophole that the employers can use and should use to empower their workers more, through trusting them to make some minor decisions first this thus strengthening the trust string between the employee and the employer (Bell, Raiffa and Tversky, 2011).
Now that the stay of the expatriate workers is entirely based on the working contracts between them and their employers, the companies should use these contracts to strengthen their trust bond with the employees. This can be achieved by setting the right terms and conditions on the contract that reflect the interests of both parties (Hammerstein and Stevens, n.d.). The mode of operation for decision-making in the business environment in Qatar, as earlier stated, is based on the top–bottom channel. However, the companies can make this system more flexible so that everyone’s brain is challenged to make decisions, and they don’t have to be major. This inspires more trust (Hammond, 2000). The contract period stipulated by the law is 2-5 years. These companies can give the employees the option of contracts. It could be even some months before the current expiry of the contract. This in itself puts the employee in a position that he/she can make personal decisions(Svenson and Maule, 1993).
The state gives priority to Qatari Citizens when it comes to employment. This is mainly because its laws stipulate that Qatari citizens be considered first before non-Qatari citizens are considered. If the company hires based on merit, this means everyone is given a fair chance. When an employee is hired based on personal strengths and qualifications, this gives them confidence, which translates into productivity. They believe in what they do since they possess the skill and prowess.
In conclusion, companies and employers should engage with the relevant bodies and arms of the government and deliberate on ways in which the law can be put into place to hold the interests of the employees, employers, and the government (Thompson et al., n.d.). Companies should also encourage their employees to join the existing trade Unions that operate within the law. Trade Unions inspire more confidence in the workers. The relevant stakeholders should also be keen when approached by employees with grievances.
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