Full Employment Contract Template for Saudi Arabia

The Full Employment Contract serves as the primary legal document establishing an employment relationship in Saudi Arabia. It is essential for both Saudi nationals and expatriate workers, ensuring compliance with the Saudi Labor Law (Royal Decree No. M/51) and related regulations. This document should be used when hiring permanent, full-time employees in Saudi Arabia, whether for indefinite or fixed terms. It includes crucial provisions regarding probation periods, working hours, leave entitlements, end of service benefits, and other mandatory requirements under Saudi law. The contract must align with Saudization policies, WPS requirements, and GOSI regulations, while also incorporating company-specific policies and terms. It forms the foundation of the employer-employee relationship and provides legal protection for both parties.

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 contract

4. Job Description and Duties: Detailed description of the position, role, responsibilities, and reporting structure

5. Term and Probation Period: Duration of employment (fixed or unlimited term) and probation period details as per Saudi Labor Law

6. Working Hours and Days: Standard working hours, days, overtime provisions, and Ramadan working hours

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

8. Remuneration: Base salary, allowances, and payment schedule in compliance with WPS

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

10. Medical Insurance: Health insurance coverage as per Saudi law

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 by either party

13. Confidentiality: Protection of employer's confidential information

14. Governing Law: Confirmation of Saudi Law application and dispute resolution mechanism