Mutual Agreement Employment Template for Saudi Arabia

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Key Requirements PROMPT example:

Mutual Agreement Employment

"I need a Mutual Agreement Employment contract for a senior software developer position in our Riyadh tech company, including remote work provisions and intellectual property clauses, starting March 2025."

Document background
The Mutual Agreement Employment contract serves as a comprehensive framework for establishing employment relationships in Saudi Arabia. It is designed for use when hiring both Saudi nationals and expatriate workers, ensuring compliance with Saudi Labor Law, social insurance regulations, and Saudization requirements. The document incorporates mandatory provisions required by Saudi authorities, including working hours, leave entitlements, end of service benefits, and termination procedures. This template reflects recent labor reforms and Vision 2030 initiatives, making it suitable for modern employment relationships while maintaining traditional legal compliance. The agreement is particularly valuable for companies establishing or expanding their workforce in Saudi Arabia, providing a legally sound foundation for employment relationships that protects both employer and employee interests.
Suggested Sections

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

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Position title, employment classification (permanent/temporary), and contract duration

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

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

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

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

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

10. Benefits: Medical insurance, social insurance (GOSI), and other statutory benefits

11. Confidentiality: Protection of company information and trade secrets

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

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

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

Optional Sections

1. Probationary Period: Include when the employer wishes to implement an initial trial period (up to 90 days)

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

3. Bonus and Commission: Include for sales positions or roles with performance-based compensation

4. Remote Work: Include if the role involves any remote working arrangements

5. Training Requirements: Include if specific training or qualifications are required

6. Intellectual Property: Include for creative or technical roles involving creation of IP

7. Transfer and Secondment: Include if employee may be transferred to different locations or group companies

8. Housing Allowance: Include if providing separate housing benefits beyond basic salary

Suggested Schedules

1. Schedule 1 - Job Description: Detailed breakdown of job responsibilities and requirements

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Key workplace policies and procedures

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

5. Appendix A - Code of Conduct: Company's code of conduct and ethical requirements

6. Appendix B - Safety Procedures: Workplace safety guidelines and procedures

7. Appendix C - Benefits Summary: Detailed description of all employee 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

Relevant legal definitions
Clauses
Relevant Industries

Banking & Finance

Technology

Manufacturing

Healthcare

Education

Retail

Construction

Professional Services

Telecommunications

Energy & Resources

Hospitality

Transportation & Logistics

Real Estate

Media & Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research & Development

Customer Service

Production

Quality Assurance

Administration

Project Management

Business Development

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Manager

Senior Specialist

Technical Specialist

Administrative Assistant

HR Manager

Finance Manager

Operations Manager

Sales Executive

Marketing Coordinator

Project Manager

Research Analyst

Software Developer

Account Manager

Customer Service Representative

Legal Counsel

Quality Control Specialist

Production Supervisor

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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