Full Time Employment Contract Template for Saudi Arabia

A Full Time Employment Contract is your essential legal document for establishing permanent employment relationships in Saudi Arabia. This comprehensive agreement protects both your interests and your employee's rights while ensuring full compliance with Saudi Labor Law and ministerial regulations. You'll need this contract whenever you hire permanent, full-time staff, whether Saudi nationals or expatriate workers.

When do you need this document?

You must use this contract when hiring any permanent employee for full-time positions in Saudi Arabia. This includes situations where you're bringing in expatriate professionals who require work visas, promoting temporary workers to permanent positions, or establishing employment relationships that extend beyond short-term project work. The contract is mandatory for all employment relationships exceeding 90 days and must be executed before the employee begins work. You'll also need this document when transitioning from probationary employment to confirmed permanent status, as Saudi Labor Law requires clear documentation of employment terms from the outset.

Key legal considerations

Your employment contract must include several mandatory clauses under Saudi Labor Law. The probation period cannot exceed 90 days and must be clearly specified, with the right to extend only once by mutual agreement. You must detail the compensation structure, including basic salary, allowances, and any performance-based incentives, ensuring compliance with minimum wage requirements. Working hours are strictly regulated – typically 8 hours per day and 48 hours per week, with reduced hours during Ramadan. The contract must specify annual leave entitlements (minimum 21 days), sick leave provisions, and end of service benefits calculations. Termination clauses must align with Saudi Labor Law, including notice periods and circumstances for immediate termination. You're also required to include social insurance obligations under GOSI and health insurance coverage as mandated by the Cooperative Health Insurance Law.

Legal requirements in Saudi Arabia

Saudi Arabia imposes specific legal requirements that your employment contract must address. All contracts must be written in Arabic or include certified Arabic translations, and you must register the contract with the Ministry of Human Resources and Social Development through the Qiwa platform. The Wage Protection System (WPS) requires you to pay salaries electronically and report payments monthly to ministry authorities. For companies subject to Nitaqat regulations, you must ensure compliance with Saudization quotas and related employment targets. The contract must reference applicable visa requirements for expatriate employees, including sponsor obligations and residency permit conditions. Additionally, you must incorporate provisions for religious observances, cultural considerations, and alignment with Sharia principles in employment practices. All employment contracts are subject to Saudi Labor Law's mandatory provisions, which cannot be waived or modified to the employee's detriment, regardless of what the contract states.