Document background
The Local Employment Contract is a fundamental legal document used in Saudi Arabia to establish and govern the employment relationship between employers and employees. This contract is essential for any business operating in Saudi Arabia and must comply with the Saudi Labor Law, its implementing regulations, and related ministerial decisions. It serves as the primary document defining the terms of employment, including remuneration, benefits, working conditions, and obligations of both parties. The contract must address specific requirements under Saudi law, such as probation periods, working hours, leave entitlements, and end of service benefits. It's particularly important in the context of Saudi Arabia's Saudization (Nitaqat) program and must reflect different considerations for Saudi nationals and expatriate workers. The document should be drafted in Arabic or in dual language format (Arabic-English) to ensure legal enforceability.
