Fixed Term Agreement for Saudi Arabia

Fixed Term Agreement Template for Saudi Arabia

This Fixed Term Employment Agreement is a comprehensive legal document designed to comply with Saudi Arabian Labor Law and related regulations. It establishes a defined-period employment relationship between an employer and employee, clearly outlining the terms and conditions of employment, including duration, compensation, benefits, and termination provisions. The agreement incorporates all mandatory requirements under Saudi law, including recent labor reforms, Wage Protection System compliance, and Saudization considerations, while providing a framework for both parties' rights and obligations throughout the fixed employment period.

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What is a Fixed Term Agreement?

This Fixed Term Agreement template is designed for use in Saudi Arabia when establishing employment relationships for a specified duration. It is particularly suitable for project-based work, seasonal employment, or situations where a clear end date to the employment relationship is desired. The agreement complies with Saudi Labor Law (Royal Decree No. M/51) and subsequent reforms, incorporating mandatory provisions regarding contract duration, notice periods, and end of service benefits. Fixed Term Agreements in Saudi Arabia can be renewed by explicit agreement between parties, with specific legal implications after renewal. This document includes all necessary provisions required by the Ministry of Human Resources and Social Development, including working hours, leave entitlements, and compensation structure, while ensuring alignment with Wage Protection System requirements and Saudization regulations.

What sections should be included in a Fixed Term Agreement?

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 purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Term and Duration: Specific start date and duration of the fixed-term contract, including any probationary period

5. Position and Duties: Job title, role description, responsibilities, and reporting relationships

6. Place of Work: Primary workplace location and any mobility requirements

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

8. Compensation: Base salary, allowances, and payment terms compliant with WPS regulations

9. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Saudi Labor Law

10. Confidentiality: Obligations regarding company confidential information

11. Termination: Grounds for termination and notice requirements

12. End of Service Benefits: Calculation and payment of end of service benefits

13. Governing Law: Confirmation of Saudi Law application and jurisdiction

14. Entire Agreement: Standard boilerplate confirming this is the complete agreement between parties

What sections are optional to include in a Fixed Term Agreement?

1. Non-Competition: Restrictions on post-employment activities - include only if relevant to position level and justified by business interests

2. Housing Allowance: Details of housing benefits if provided - include when housing is part of compensation package

3. Transportation Allowance: Transportation benefit details - include when transportation is part of compensation package

4. Performance Bonus: Performance-based compensation terms - include when bonus schemes are applicable

5. Training Obligations: Required training and associated commitments - include when specific training is required

6. Remote Work Provisions: Terms for remote working arrangements - include if remote work is permitted

7. Intellectual Property Rights: IP ownership and assignment - include for technical or creative roles

What schedules should be included in a Fixed Term Agreement?

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

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

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

4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria if applicable

5. Appendix A - Required Documentation: List of required employee documents (qualifications, certificates, etc.)

6. Appendix B - Health Insurance Details: Summary of health insurance coverage and benefits

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Construction and Engineering

Information Technology

Healthcare

Education

Manufacturing

Retail

Oil and Gas

Telecommunications

Professional Services

Hospitality and Tourism

Real Estate

Media and Entertainment

Transportation and Logistics

Government and Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Project Management Office

Compliance

Procurement

Quality Assurance

Relevant Roles

Project Manager

Software Developer

Construction Engineer

Medical Professional

Academic Staff

Sales Representative

Financial Analyst

HR Specialist

Technical Consultant

Research Scientist

Operations Manager

Marketing Executive

Legal Counsel

Administrative Assistant

Site Supervisor

Customer Service Representative

Account Manager

IT Support Specialist

Industries
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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