Job Offer Contract for Saudi Arabia

Job Offer Contract Template for Saudi Arabia

This document serves as a formal employment contract under Saudi Arabian law, establishing the legal relationship between an employer and employee. It comprehensively outlines the terms and conditions of employment, including position details, compensation, benefits, and working conditions, while ensuring compliance with Saudi Labor Law (Royal Decree No. M/51) and related regulations. The contract incorporates mandatory provisions required by Saudi legislation, including working hours, leave entitlements, probation periods, and end of service benefits, while also addressing specific requirements for both Saudi nationals and expatriate workers where applicable.

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What is a Job Offer Contract?

The Job Offer Contract is a fundamental legal document used in Saudi Arabia to formalize employment relationships between organizations and their prospective employees. This document is essential for compliance with Saudi Labor Law and must be drafted and executed before the commencement of employment. It serves multiple purposes: establishing clear terms of employment, protecting both parties' rights, ensuring compliance with local regulations, and providing a framework for the employment relationship. The contract must address specific requirements under Saudi law, including Saudization policies, and can be used for both Saudi nationals and expatriate workers, though additional provisions may be needed for the latter. The document typically precedes the formal registration of employment with the Ministry of Human Resources and Social Development and is crucial for obtaining work permits and residency visas for foreign workers.

What sections should be included in a Job Offer Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment offer and any relevant pre-conditions

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date, probation period, and contract duration (fixed-term or unlimited)

6. Compensation and Benefits: Base salary, allowances, and statutory benefits

7. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements

8. Leave Entitlements: Annual leave, sick leave, and other statutory leave provisions

9. Confidentiality and Intellectual Property: Protection of company information and ownership of work product

10. Termination: Conditions and procedures for contract termination by either party

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

12. Governing Law: Confirmation of Saudi Labor Law application and dispute resolution

13. Entire Agreement: Statement that the contract represents the complete agreement between parties

What sections are optional to include in a Job Offer Contract?

1. Mobility Clause: Required for positions that may involve relocation or travel

2. Non-Competition: For senior positions or roles with access to sensitive information

3. Commission Structure: For sales positions or roles with variable compensation

4. Housing Allowance Terms: Detailed terms when housing is provided or allowance is significant

5. Transportation Allowance: When specific transportation benefits are offered

6. Medical Insurance Details: When offering coverage beyond statutory requirements

7. Performance Bonus: For positions eligible for performance-based incentives

8. Training Commitments: When specific training requirements or bonds are involved

9. Visa and Residency: For expatriate employees requiring sponsorship

What schedules should be included in a Job Offer Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting lines

2. Schedule 2 - Compensation Details: Breakdown of salary components and payment structure

3. Schedule 3 - Benefits Summary: Detailed list of all benefits and allowances

4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms

5. Appendix A - Required Documents: List of documents required for employment formalization

6. Appendix B - Performance Metrics: Specific KPIs or performance expectations if applicable

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Cost

Free to use

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