Fixed Term Employment Contract Template for Saudi Arabia

A Fixed Term Employment Contract is a legally binding agreement that establishes temporary employment relationships in Saudi Arabia for a predetermined period. Unlike indefinite contracts, these agreements specify exact start and end dates, making them essential for project-based work, seasonal employment, or specialized short-term roles under Saudi Labor Law.

When do you need this document?

You need this contract when hiring employees for temporary positions, project-specific work, or seasonal business increases. Construction companies use these contracts for project durations, retail businesses employ them during peak seasons like Ramadan and Hajj periods, and technology firms utilize them for software development projects with defined timelines. International companies establishing Saudi operations often use fixed-term contracts while building permanent teams. Educational institutions commonly employ these contracts for academic year positions or specific program durations.

Key legal considerations

Your contract must comply with Saudi Labor Law's maximum fixed-term duration of four years, with possible renewal only once. Include clear position descriptions, salary structures, working hours (maximum 8 hours daily, 48 hours weekly), and mandatory leave provisions including annual leave (21-30 days), sick leave, and religious holidays. Specify end-of-service benefits calculations, which differ from indefinite contracts, and include probation periods not exceeding 180 days. Address termination procedures, notice requirements, and compensation obligations. Ensure compliance with Nitaqat Saudization requirements if applicable, and include mandatory social insurance (GOSI) enrollment provisions.

Legal requirements in Saudi Arabia

Saudi law requires your contract to be written in Arabic, though English translations are permitted for clarity. Register the contract with the Ministry of Human Resources and Social Development within the prescribed timeframe. Ensure compliance with the Wage Protection System (WPS) for salary payments, including specific timing and documentation requirements. For international hires, obtain proper work visa documentation and Saudi Arabian Embassy attestation. Include mandatory clauses covering social insurance contributions, workplace injury coverage, and pension obligations under the Social Insurance Law. Adhere to Ministerial Resolution No. 1982 regarding working conditions, rest periods, and overtime compensation. The contract must specify clear renewal terms and cannot be automatically extended beyond legal limits without proper documentation and mutual agreement.