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New Employment Contract

New Employment Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

New Employment Contract

"I need a New Employment Contract for a Sales Manager position based in Riyadh, with a start date of March 1, 2025, including standard benefits package and commission structure as per Saudi Labor Law."

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Document background
This New Employment Contract template is designed for establishing new employment relationships in Saudi Arabia, ensuring compliance with the Saudi Labor Law (Royal Decree No. M/51) and related ministerial resolutions. The document should be used when hiring new employees, whether Saudi nationals or expatriates, and includes all mandatory provisions required by Saudi law. It covers essential elements such as compensation, benefits, working hours, leave entitlements, and termination procedures, while accommodating Saudization requirements and social insurance obligations. The contract can be customized for various positions and industries while maintaining compliance with local regulations, including recent labor law reforms and electronic documentation requirements under the Wage Protection System.
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 contract

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

5. Term and Probationary Period: Contract duration (fixed/unlimited term) and probationary period details

6. Working Hours and Location: Standard working hours, workplace location, and flexibility provisions

7. Compensation: Base salary, payment frequency, and method of payment in compliance with WPS

8. Benefits and Allowances: Mandatory benefits including annual leave, sick leave, and public holidays

9. Social Insurance and Healthcare: GOSI registration and medical insurance provisions

10. Termination: Grounds for termination, notice periods, and end-of-service benefits

11. Confidentiality: Protection of company information and trade secrets

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

Optional Sections

1. Housing Allowance: Include when employer provides housing or housing allowance

2. Transportation Allowance: Include when employer provides transportation or related allowance

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

4. Training Requirements: Include when specific training or certifications are required

5. Non-Compete Clause: Include for senior positions or roles with access to sensitive information

6. Intellectual Property Rights: Include for creative or technical positions

7. Remote Work Provisions: Include if remote work is permitted

8. International Travel: Include if position requires international travel

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

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

4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical requirements

5. Appendix A - Leave Policy: Detailed leave entitlements and procedures

6. Appendix B - Performance Review Process: Performance evaluation criteria and timing

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Clauses
Term and Duration
Duties and Responsibilities
Probationary Period
Compensation and Benefits
Working Hours
Leave Entitlements
Medical Insurance
Social Insurance
Confidentiality
Intellectual Property
Non-Competition
Non-Solicitation
Termination
End of Service Benefits
Notice Period
Religious Observance
Health and Safety
Code of Conduct
Disciplinary Procedures
Grievance Procedures
Data Protection
Assignment and Transfer
Amendments
Governing Law
Dispute Resolution
Entire Agreement
Severability
Force Majeure
Notices
Relevant Industries

Financial Services

Technology

Healthcare

Manufacturing

Retail

Construction

Education

Professional Services

Oil and Gas

Telecommunications

Hospitality

Real Estate

Transportation

Mining

Agriculture

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Production

Quality Assurance

Business Development

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

General Manager

Department Director

Project Manager

Senior Engineer

Software Developer

Financial Analyst

HR Manager

Sales Representative

Marketing Specialist

Administrative Assistant

Operations Manager

Technical Supervisor

Research Scientist

Legal Counsel

Customer Service Representative

Account Manager

Production Supervisor

Quality Control Inspector

Business Development Manager

Industries
Saudi Labor Law (Royal Decree No. M/51): The primary legislation governing employment relationships in Saudi Arabia, covering fundamental aspects such as contracts, working hours, leave, termination, and employee rights
Ministerial Resolution No. 116653: Regulations regarding employment contract documentation requirements and mandatory contract terms in Saudi Arabia
Social Insurance Law: Legislation governing social insurance requirements, including GOSI (General Organization for Social Insurance) registration and contributions
Wage Protection System (WPS): Regulations requiring electronic payment of wages and salary documentation
Saudization (Nitaqat) Regulations: Requirements for hiring Saudi nationals and maintaining minimum ratios of Saudi to expatriate workers
Ministry of Human Resources and Social Development Resolutions: Various ministerial decisions regarding workplace conditions, safety standards, and employee rights
Anti-harassment Regulations: Legal framework protecting employees from workplace harassment and establishing reporting mechanisms
Working Hours Regulation During Ramadan: Specific provisions for reduced working hours during the month of Ramadan for Muslim employees
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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