Indefinite Contract Template for Saudi Arabia

This indefinite contract template is designed for use in establishing permanent employment relationships in Saudi Arabia, in compliance with the Saudi Labor Law (Royal Decree No. M/51) and related regulations. The document serves as a comprehensive agreement between employers and employees, specifically structured as an Indefinite Contract which continues until terminated by either party according to statutory requirements. It includes mandatory provisions required by Saudi law, such as probationary periods, working hours, leave entitlements, and end of service benefits, while also accommodating company-specific policies and benefits. This template is regularly updated to reflect changes in Saudi labor regulations and can be customized based on specific employment terms while maintaining compliance with local law requirements.

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

2. Background: Brief context of the employment relationship and reference to any preliminary agreements

3. Definitions: Key terms used throughout the contract

4. Appointment and Term: Nature of employment, job title, and indefinite duration of the contract

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

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. Remuneration: Base salary, payment schedule, and method of payment through WPS

9. Benefits and Allowances: Mandatory benefits under Saudi law including housing, transportation, and medical insurance

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

11. Probationary Period: Duration and terms of the probationary period as per Saudi Labor Law

12. Confidentiality: Protection of company information and trade secrets

13. Termination: Grounds and procedures for contract termination by either party

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

15. Governing Law: Confirmation of Saudi Labor Law application and jurisdiction