Collective Bargaining Contract Template for Saudi Arabia

The Collective Bargaining Contract serves as a foundational document for establishing and maintaining formal workplace relations in Saudi Arabia between employers and their workforce through recognized workers' committees. While traditional labor unions are not permitted in Saudi Arabia, this agreement operates within the framework established by the Saudi Labor Law and relevant ministerial decisions, particularly Ministerial Decision No. 1/2834 of 1436 H regarding workers' committees. The document is typically used in medium to large organizations to formalize workplace dialogue, establish clear communication channels, and define terms of employment including working conditions, compensation, benefits, and dispute resolution procedures. It ensures compliance with Saudi labor regulations while providing a structured approach to employee-management relations.

1. Parties: Identification of the employer and the workers' committee representatives, including their legal authority to enter into the agreement

2. Background: Context of the agreement, including reference to relevant Saudi labor laws and ministerial decisions authorizing the arrangement

3. Definitions: Key terms used throughout the agreement, including specific Saudi legal terminology

4. Scope and Duration: Coverage of the agreement, including which employees are covered and the term of the agreement

5. Recognition and Authority: Formal recognition of the workers' committee and its authorized scope of representation under Saudi law

6. Communication and Consultation Procedures: Established processes for dialogue between management and workers' committee

7. Working Hours and Scheduling: Standard working hours, shift arrangements, and overtime provisions in compliance with Saudi Labor Law

8. Compensation and Benefits: Wage scales, allowances, and benefits structure, including compliance with WPS requirements

9. Leave Entitlements: Various types of leave and holiday entitlements as per Saudi Labor Law

10. Health and Safety: Workplace safety standards and procedures

11. Training and Development: Provisions for employee skill development and training programs

12. Disciplinary Procedures: Process for handling workplace violations and disputes

13. Termination Provisions: Conditions and procedures for contract termination

14. Compliance with Saudization: Commitment to maintaining required Saudi national employment quotas

15. Dispute Resolution: Procedures for resolving disagreements within the Saudi legal framework

16. Governing Law: Explicit statement of Saudi law governance and jurisdiction