Agreement Between Employer And Employee Template for Saudi Arabia

The Agreement Between Employer And Employee is a fundamental legal document used in Saudi Arabia to formalize employment relationships and ensure compliance with local labor laws. This agreement is required whenever a new employee is hired, whether for permanent or fixed-term positions, and must conform to the Saudi Labor Law (Royal Decree No. M/51) and related ministerial regulations. The document serves multiple purposes: it protects both parties' rights, clearly defines employment terms and conditions, ensures compliance with Saudization requirements where applicable, and provides a clear framework for the employment relationship. The agreement must be in Arabic (with optional additional languages) and needs to address mandatory provisions required by Saudi law while allowing flexibility for specific employment terms.

1. Parties: Identification of the employer and employee with full legal names and addresses

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

3. Definitions: Key terms used throughout the agreement defined for clarity

4. Appointment and Term: Position title, employment status (permanent/temporary), and commencement date

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

6. Place of Work: Primary workplace location and potential for travel or relocation

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

8. Remuneration and Benefits: Salary, allowances, and statutory benefits including social insurance

9. Leave Entitlements: Annual leave, sick leave, Hajj leave, and other statutory leave entitlements

10. Confidentiality: Obligations regarding company confidential information and trade secrets

11. Intellectual Property: Ownership of work products and innovations created during employment

12. Non-Competition and Non-Solicitation: Post-employment restrictions in line with Saudi law

13. Code of Conduct: Expected behavioral standards and compliance with company policies

14. Termination: Grounds and procedures for contract termination as per Saudi Labor Law

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