Not enough ATMs in Qatar yet to implement labour law changes

Automated teller machines (ATM) across the country would come under tremendous pressure with the implementation of the new law on salary transfer if the local banks do not go for a massive expansion of their ATM network, say industry sources.

An estimated 1.2 million expatriate workers falling in the low- income bracket are expected to benefit from the law (No 1 of 2015), which makes it mandatory for employers to pay their workers' wages through an electronic transfer system in a timely manner.

Several shops in the unorganised sector such as groceries and supermarkets which currently pay their employees in cash say that they have started preparations to transfer their wages to one of the financial institutions.

Companies have been given a six-month grace period to comply with the law , which can be extended to another six months or more with approval from the Minister of Labour and Social Affairs.

Many employers believe that a major issue that could emerge with implementation of the new law is the possibility of long queues in front of ATMs, especially in areas dominated by low-income expatriate workers.

Banks would be forced to go for a massive and immediate expansion of their ATM network across the country to cope with the huge increase in their account holders.

There could also be initial problems arising from uneducated workers using the ATMs.

"Already we see long queues of labourers in front of ATMs in Industrial Area and in the souqs especially during weekends. This could worsen as more shops and companies opt for electronic salary transfer. Complaints about transaction failures may also increase at least in the initial phase due to the ignorance of the workers," said the manager of a leading supermarket in Airport area.

He said his company is having discussions with a leading bank to transfer their workers' salaries probably by next month.

"Our plan is to implement the system as soon as possible. We will not wait for the six-month grace period to end," he added.

Banks normally open a special account for such workers, called D-pay account that can be used only for salary transfer and issue a D-Pay electronic card to them, according to a banking industry source. This card can be used only in ATMs of that particular bank.

This means that employees of many neighbourhood stores would face problems in withdrawing money if they don't find an ATM of their bank in the vicinity.

"We are studying options. While we choose a bank we have to make sure ATMs are available in the neighbourhood. Our employees cannot afford to take a taxi every time to collect salaries," said the manager of a supermarket chain in Doha.

Contrary to general perceptions, owners said, groceries and other shops may not face financial problems while implementing the law because they enjoy a steady flow of income. [The Peninsula]