Managing Director Contract Of Employment Template for Saudi Arabia

The Managing Director Contract Of Employment is a crucial document used when appointing senior executives in Saudi Arabia. It serves as the primary agreement governing the employment relationship between a company and its Managing Director, incorporating requirements from Saudi Labor Law, Corporate Governance Regulations, and related legislation. This document is essential for companies operating in Saudi Arabia who need to formalize the appointment of a senior executive while ensuring compliance with local laws and regulations. The contract typically includes comprehensive terms covering responsibilities, compensation, benefits, and post-employment obligations, while also addressing specific Saudi requirements such as end of service benefits, working hours, and leave entitlements. It's particularly important for both Saudi and international companies operating in the Kingdom, especially given the increasing focus on corporate governance and transparency in the Saudi business environment.

1. Parties: Identification of the employer company and the Managing Director, including full legal names and addresses

2. Background: Brief context about the appointment and the company's business

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position details, commencement date, and term of employment (fixed or indefinite)

5. Duties and Responsibilities: Detailed description of the Managing Director's role, authority, and obligations

6. Place of Work: Primary work location and travel requirements

7. Working Hours and Availability: Expected working hours while acknowledging the senior nature of the role

8. Remuneration: Base salary, payment frequency, and currency

9. Benefits and Allowances: Housing, transportation, and other standard benefits as per Saudi Labor Law

10. Annual Leave and Public Holidays: Vacation entitlement and public holiday provisions

11. Medical Insurance: Health insurance coverage for the director and eligible dependents

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

13. Intellectual Property: Ownership and protection of IP created during employment

14. Non-Competition and Non-Solicitation: Post-employment restrictions in line with Saudi law

15. Termination: Grounds and procedures for contract termination

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

17. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution