Company Contract For Employees for Saudi Arabia

Company Contract For Employees Template for Saudi Arabia

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Company Contract For Employees

"I need a Company Contract For Employees template for a senior software developer position in our Riyadh tech startup, including specific clauses for intellectual property rights and remote work arrangements starting March 2025."

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What is a Company Contract For Employees?

The Company Contract For Employees serves as the primary legal document governing the employment relationship between companies and their employees in Saudi Arabia. This contract template is designed to comply with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions, while incorporating Islamic Shariah principles that underpin the Kingdom's legal framework. It is essential for both new hires and existing employees requiring contract updates, providing comprehensive coverage of employment terms, rights, and obligations. The document includes mandatory provisions required by Saudi law, such as probation periods, working hours, leave entitlements, and end-of-service benefits, while allowing flexibility to accommodate specific role requirements and additional benefits. Regular updates ensure continued compliance with evolving labor regulations and Saudization requirements.

What sections should be included in a Company Contract For Employees?

1. Parties: Identification of the employer company and the employee, including full legal names and relevant details

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

3. Definitions: Key terms used throughout the contract and their meanings

4. Appointment and Term: Position, job title, employment status (definite/indefinite term), and commencement date

5. Duties and Responsibilities: Main responsibilities, reporting lines, and performance expectations

6. Compensation and Benefits: Base salary, allowances, bonuses, and other financial benefits

7. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements

8. Leave Entitlements: Annual leave, sick leave, hajj leave, and other statutory leave entitlements

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

10. Intellectual Property: Ownership and rights regarding work-created intellectual property

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

12. Termination: Grounds and procedures for contract termination, notice periods, and consequences

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

What sections are optional to include in a Company Contract For Employees?

1. Probation Period: Details of probationary period if applicable (up to 90 days as per Saudi law)

2. Non-Competition: Post-employment restrictions, used for senior positions or roles with access to sensitive information

3. Housing Allowance: Specific terms regarding housing benefits if provided

4. Transportation Allowance: Details of transportation benefits if provided

5. Commission Structure: For sales or commission-based roles

6. International Assignment: Additional terms for expatriate employees

7. Training Obligations: Specific training requirements and associated commitments

8. Medical Insurance: Details of health insurance coverage if exceeding statutory requirements

What schedules should be included in a Company Contract For Employees?

1. Job Description: Detailed outline of role responsibilities and requirements

2. Compensation Structure: Breakdown of salary components and calculation methods

3. Company Policies: Reference to key company policies and procedures

4. Benefits Summary: Detailed description of all benefits and eligibility criteria

5. Performance Metrics: Specific KPIs and performance evaluation criteria

6. Code of Conduct: Company's code of conduct and ethical guidelines

7. IT and Systems Usage Policy: Rules regarding use of company IT systems and equipment

8. Disciplinary Procedures: Detailed disciplinary process and potential consequences

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

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Oil & Gas

Technology

Manufacturing

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Education

Retail

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Professional Services

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Hospitality

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Transportation & Logistics

Mining

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Relevant Teams

Human Resources

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Finance

Operations

Information Technology

Sales

Marketing

Research & Development

Customer Service

Production

Quality Assurance

Business Development

Administration

Compliance

Project Management

Relevant Roles

Chief Executive Officer

General Manager

Department Director

Senior Manager

Project Manager

Technical Specialist

Sales Representative

Administrative Assistant

Human Resources Officer

Financial Analyst

Operations Manager

Research Scientist

Software Developer

Marketing Coordinator

Customer Service Representative

Legal Counsel

Account Manager

Production Supervisor

Quality Control Inspector

Business Development Executive

Find the exact document you need

Work Agreement Letter

A Saudi Arabia-governed employment agreement letter establishing terms and conditions between employer and employee under Saudi Labor Law.

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What is a Company Contract For Employees?

What sections should be included in a Company Contract For Employees?

What sections are optional to include in a Company Contract For Employees?

What schedules should be included in a Company Contract For Employees?

Authors

Alex Denne

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