Guaranteed Employment Contract for Saudi Arabia

Guaranteed Employment Contract Template for Saudi Arabia

This document is a comprehensive employment contract that complies with Saudi Arabian Labor Law (Royal Decree No. M/51) and related regulations. It establishes a guaranteed employment relationship between an employer and employee, detailing all mandatory terms and conditions required under Saudi law, including working hours, compensation, benefits, and termination provisions. The contract incorporates Saudization requirements, social insurance obligations, and wage protection system compliance, while also addressing specific protections and obligations under Islamic Sharia principles as applicable in Saudi Arabia.

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What is a Guaranteed Employment Contract?

The Guaranteed Employment Contract is a fundamental document used in Saudi Arabia to establish and regulate employment relationships in compliance with Saudi Labor Law and Sharia principles. This contract type is particularly important as it provides enhanced job security and clear terms of employment, making it attractive for both employers seeking to retain talent and employees looking for stable employment. The document must comply with various regulatory requirements, including those set by the Ministry of Human Resources and Social Development, and needs to be authenticated through the Mudad platform. It includes comprehensive details about employment terms, benefits, and obligations, while ensuring alignment with Saudi Arabia's social insurance requirements and Wage Protection System regulations. This contract type is especially relevant for permanent positions and roles requiring specific expertise or long-term commitment.

What sections should be included in a Guaranteed Employment Contract?

1. Parties: Identification of the employer and employee with full legal names, addresses, and relevant identification numbers

2. Background: Context of the employment relationship and purpose of the guaranteed contract

3. Definitions: Definitions of key terms used throughout the contract

4. Term of Employment: Duration of employment, including start date and whether fixed-term or indefinite

5. Position and Duties: Job title, role description, responsibilities, and reporting relationships

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

7. Working Hours: Standard working hours, rest periods, and overtime arrangements as per Saudi Labor Law

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

9. Benefits: Mandatory benefits including social insurance, medical insurance, and other statutory benefits

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

11. Probationary Period: Duration and terms of the probationary period if applicable

12. Termination: Grounds and procedures for contract termination, notice periods, and end-of-service benefits

13. Confidentiality: Obligations regarding confidential information and trade secrets

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

What sections are optional to include in a Guaranteed Employment Contract?

1. Non-Competition: Restrictions on post-employment competition, used when employee has access to sensitive information or client relationships

2. Intellectual Property: IP rights and assignments, included when employee's role involves creation of IP

3. Remote Work: Terms for remote working arrangements, included if remote work is permitted

4. Commission Structure: Details of commission or bonus schemes, included for sales or performance-based roles

5. International Travel: Terms for international travel and assignments, included if role requires travel

6. Training Commitments: Training requirements and bond terms, included if employer provides significant training

7. Housing Allowance: Terms of housing provision or allowance, included if housing is provided

8. Transportation: Transportation arrangements or allowances, included if transportation is provided

What schedules should be included in a Guaranteed Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies including code of conduct and HR policies

4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria

5. Appendix A - Required Documents: List of required documents for employment file including qualifications and certificates

6. Appendix B - Benefits Summary: Detailed description of all benefits and eligibility criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Oil & Gas

Banking & Financial Services

Healthcare

Construction

Manufacturing

Technology

Retail

Education

Telecommunications

Professional Services

Hospitality

Transportation & Logistics

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Recruitment

Employee Relations

Compensation & Benefits

Risk Management

Relevant Roles

Chief Executive Officer

Department Manager

Senior Engineer

Financial Analyst

HR Manager

Project Manager

Technical Specialist

Sales Manager

Operations Director

Research Scientist

Medical Professional

Legal Counsel

Account Manager

IT Developer

Administrative Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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