Full Time Contract Template for Saudi Arabia

A Full Time Contract is a comprehensive employment agreement that establishes the legal relationship between an employer and a permanent employee in Saudi Arabia. This document serves as the foundation for all employment terms and conditions, ensuring both parties understand their rights and obligations under Saudi Labor Law and related regulations.

When do you need this document?

You need a Full Time Contract whenever you're hiring a permanent employee in Saudi Arabia, whether they're a Saudi national or an expatriate worker. This includes situations where you're converting a temporary worker to permanent status, hiring fresh graduates, recruiting experienced professionals, or bringing in skilled foreign workers. The contract is mandatory for all employment relationships exceeding temporary or project-based work, and it's required for work visa applications and residency permits for foreign employees. You'll also need this document when establishing clear terms for senior management positions, technical roles, or any position that requires long-term commitment from both employer and employee.

Key legal considerations

Several critical legal elements must be addressed in your Full Time Contract to ensure compliance with Saudi regulations. The probationary period cannot exceed 90 days for most positions, during which either party can terminate without notice. Working hours are strictly regulated, with a maximum of 8 hours per day and 48 hours per week, reduced to 6 hours daily during Ramadan for Muslim employees. Annual leave entitlements start at 21 days and increase to 30 days after five years of service. End of service benefits must be calculated according to specific formulas based on length of service and final salary. The contract must clearly specify salary components, as the Wage Protection System requires electronic salary transfers with detailed breakdowns. Termination clauses must comply with Saudi Labor Law provisions, including notice periods and severance calculations.

Legal requirements in Saudi Arabia

Saudi Arabian law imposes specific mandatory requirements that must be incorporated into every Full Time Contract. The agreement must be written in Arabic or include an Arabic translation for legal validity. For expatriate employees, the contract must align with work visa classifications and include provisions for annual leave to the home country. Saudization (Nitaqat) program compliance may require specific clauses regarding training Saudi nationals or maintaining minimum nationality ratios. Social insurance (GOSI) registration is mandatory for all employees, and the contract must address contribution responsibilities. The document must comply with Ministry of Human Resources and Social Development regulations, including recent updates on working hours, overtime calculations, and workplace policies. Additionally, contracts for foreign workers must include provisions for residence permit processing, medical insurance coverage, and repatriation arrangements upon contract termination.