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Evergreen Employment Contract

Evergreen Employment Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Evergreen Employment Contract

"I need an Evergreen Employment Contract for a senior software developer position in our Riyadh office, including specialized IP protection clauses and remote working provisions, with an expected start date of March 1, 2025."

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Document background
The Evergreen Employment Contract is designed for use in Saudi Arabia when establishing permanent, indefinite-term employment relationships. It serves as a comprehensive agreement that complies with the Saudi Labor Law and related regulations, including recent reforms and ministerial resolutions. This document is particularly relevant for companies operating in Saudi Arabia who need to formalize employment relationships while ensuring compliance with local labor laws, Saudization requirements, and the wage protection system. It includes essential provisions for salary, benefits, working hours, leave entitlements, and end of service benefits, while maintaining flexibility for long-term employment relationships. The contract is structured to protect both employer and employee interests while adhering to Islamic law principles that underpin the Saudi legal system.
Suggested Sections

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

2. Background: Brief context of the employment relationship and reference to relevant authorizations/visas if applicable

3. Definitions: Key terms used throughout the contract, including defined working hours, workplace, and other relevant terminology

4. Appointment and Duties: Job title, role description, reporting lines, and key responsibilities

5. Term and Probation: Confirmation of indefinite term (evergreen nature) and probation period as per Saudi Labor Law

6. Remuneration and Benefits: Base salary, allowances, benefits, and payment terms compliant with WPS requirements

7. Working Hours and Leave: Standard working hours, overtime provisions, and all types of leave entitlements

8. Employee Obligations: Core duties, confidentiality, non-competition, and compliance with company policies

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

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

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

Optional Sections

1. Relocation Terms: Used when the employee is being relocated from another country or city, including relocation allowances and support

2. Commission Structure: For sales or commission-based roles, detailing commission calculations and payment terms

3. Housing Allowance: When providing separate housing benefits, detailing terms and conditions of housing provision

4. Transportation Allowance: When offering specific transportation benefits beyond standard allowances

5. Education Allowance: For expatriate employees with children, detailing education support if provided

6. Remote Working Provisions: When allowing work from home or remote working arrangements

7. Intellectual Property Rights: For roles involving creative or technical work where IP ownership needs to be clearly established

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Code of Conduct: Behavioral expectations and ethical guidelines

5. Appendix A - Performance Metrics: KPIs and performance evaluation criteria

6. Appendix B - Benefits Summary: Detailed overview of all benefits and eligibility criteria

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Clauses
Appointment
Term and Duration
Probation Period
Duties and Responsibilities
Working Hours
Place of Work
Remuneration
Benefits
Annual Leave
Sick Leave
Religious Observance
Medical Insurance
Housing Allowance
Transportation Allowance
Performance Review
Confidentiality
Non-Competition
Intellectual Property
Data Protection
Code of Conduct
Disciplinary Procedures
Termination
Notice Period
End of Service Benefits
Repatriation
Force Majeure
Governing Law
Dispute Resolution
Entire Agreement
Amendments
Severability
Compliance with Laws
Social Insurance
Non-Solicitation
Company Policies
Health and Safety
Training and Development
Reporting Structure
Assignment
Language
Notices
Relevant Industries

Banking and Financial Services

Technology

Manufacturing

Healthcare

Education

Retail

Construction

Professional Services

Telecommunications

Energy and Utilities

Hospitality

Transportation and Logistics

Real Estate

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Business Development

Compliance

Strategy

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Senior Executive

Project Manager

Technical Specialist

Sales Manager

Administrative Officer

HR Manager

Financial Analyst

Operations Manager

Research Specialist

Marketing Manager

Software Engineer

Account Manager

Legal Counsel

Business Development Manager

Customer Service Representative

Industries
Saudi Labor Law (Royal Decree No. M/51): The primary legislation governing employment relationships in Saudi Arabia, covering working hours, leave, termination, end of service benefits, and other fundamental employment rights and obligations
Ministerial Resolution No. 1/1982: Regulations concerning work hours, rest periods, and working conditions, which must be reflected in employment contracts
Social Insurance Law: Governs mandatory social insurance contributions and coverage for employees, including workplace injury insurance and pension contributions
Wage Protection System (WPS): Mandatory electronic salary transfer system that ensures timely payment of wages to employees
Nitaqat (Saudization) Program Regulations: Requirements for hiring Saudi nationals and maintaining specific quotas based on company size and sector
Anti-harassment Regulations: Workplace anti-harassment provisions that must be referenced in employment contracts as per recent Saudi labor reforms
Ministry of Human Resources and Social Development (MHRSD) Guidelines: Current ministerial guidelines on contract terms, including requirements for contract language and mandatory provisions
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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