Employment Physical Form Template for Saudi Arabia

An Employment Physical Form is the cornerstone document for any employment relationship in Saudi Arabia, serving as the legally binding contract between you and your employer or employee. This mandatory document ensures compliance with Saudi Labor Law and protects the rights and obligations of both parties throughout the employment period.

When do you need this document?

You need an Employment Physical Form whenever entering into any employment relationship in Saudi Arabia, regardless of whether you're hiring local or expatriate workers. This requirement applies to all sectors and job levels, from entry-level positions to executive roles. The document becomes essential during Ministry of Human Resources and Social Development inspections, GOSI registration processes, and visa applications for foreign employees. You'll also need it when establishing probationary periods, defining compensation structures, or clarifying job responsibilities to prevent future disputes.

Key legal considerations

Several critical elements must be carefully addressed in your Employment Physical Form. The contract must clearly define the probationary period, which cannot exceed 90 days under Saudi law, and specify whether the employment is for a fixed or unlimited term. Compensation details must align with Wage Protection System requirements, ensuring payments are processed through approved Saudi banks. The document must include precise job descriptions and reporting structures to support Saudization compliance and performance evaluations. Termination clauses should reflect Saudi Labor Law provisions regarding notice periods, end-of-service benefits, and grounds for dismissal. Additionally, you must address social insurance contributions, annual leave entitlements, and any confidentiality or non-compete obligations.

Legal requirements in Saudi Arabia

Saudi Labor Law mandates that all Employment Physical Forms be prepared in both Arabic and English, with the Arabic version serving as the authoritative legal text. The contract must be signed in physical form and cannot rely solely on electronic signatures for initial execution. You're required to register the employment relationship with GOSI within 30 days of the employee's start date, using information directly from the contract. The document must comply with Ministerial Decision No. 1982, which specifies mandatory content requirements and formatting standards. For companies subject to Nitaqat regulations, the contract must support Saudization quota compliance and include relevant nationality classifications. All terms must align with minimum wage requirements and maximum working hour limitations established under Saudi labor regulations.