General Employment Agreement Template for Saudi Arabia

The General Employment Agreement serves as the foundational document establishing the employment relationship in Saudi Arabia, essential for both Saudi and non-Saudi employees across all sectors. This agreement is specifically designed to comply with Saudi Labor Law (Royal Decree No. M/51), related ministerial resolutions, and Shariah principles. It should be used when hiring new employees or formalizing existing employment relationships, providing comprehensive coverage of essential terms including appointment details, compensation, benefits, working hours, leave entitlements, and termination procedures. The agreement incorporates mandatory requirements such as Wage Protection System compliance, GOSI registration, and end of service benefits calculations, while allowing flexibility for sector-specific modifications.

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 agreement purpose

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Job title, employment status (definite/indefinite term), and commencement date

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

6. Place of Work: Primary workplace location and potential for relocation or travel

7. Working Hours: Standard working hours, breaks, and overtime arrangements in compliance with Saudi Labor Law

8. Probationary Period: Duration and terms of the probationary period (if applicable)

9. Remuneration: Base salary, allowances, and payment method through WPS

10. Leave Entitlements: Annual leave, sick leave, and other statutory leave rights

11. Social Insurance and Benefits: GOSI registration and contributions, medical insurance, and other benefits

12. Confidentiality: Protection of company confidential information and trade secrets

13. Termination: Grounds and procedures for contract termination and notice periods

14. End of Service Benefits: Calculation and payment of end of service gratuity

15. Governing Law: Application of Saudi Labor Law and dispute resolution procedures