1 Year Contract Employment Template for Saudi Arabia

This 1 Year Contract Employment agreement is designed for use in the Saudi Arabian market where fixed-term employment contracts are common across various industries. The document serves as a legally binding agreement between employers and employees, ensuring compliance with Saudi Labor Law, Ministry of Human Resources and Social Development regulations, and Shariah principles. It's particularly useful for project-based roles, expatriate employment, or positions tied to specific business needs. The contract includes mandatory provisions required by Saudi authorities, such as working hours, leave entitlements, end of service benefits, and compliance with the Wage Protection System. It also addresses requirements for work permits and residence visas where necessary, making it suitable for both Saudi nationals and foreign workers.

1. Parties: Identification of the employer and employee with full legal names, addresses, and relevant identification numbers

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Term and Renewal: Specification of the one-year term, start date, and any renewal provisions

5. Position and Duties: Employee's job title, role, responsibilities, and reporting structure

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours: Standard working hours, days, and overtime arrangements as per Saudi Labor Law

8. Probation Period: Duration and terms of the probationary period (if applicable)

9. Compensation: Base salary, payment frequency, and method of payment through WPS

10. Benefits: Mandatory benefits including social insurance, health insurance, and annual leave

11. Public Holidays and Leave: Entitled holidays, annual leave, sick leave, and other types of leave

12. Confidentiality: Protection of company confidential information and trade secrets

13. Intellectual Property: Ownership of work product and intellectual property created during employment

14. Non-Competition: Post-employment competitive restrictions (subject to Saudi Labor Law limitations)

15. Termination: Grounds and procedures for contract termination by either party

16. End of Service Benefits: Calculation and payment of end of service benefits as per Saudi Labor Law

17. Governing Law: Confirmation of Saudi Law application and dispute resolution procedures

18. Language: Specification of Arabic as the governing language with English translation if provided