Permanent Contract Template for Saudi Arabia

This Permanent Contract template is designed for use in establishing long-term employment relationships in Saudi Arabia, ensuring compliance with the Saudi Labor Law and related regulations. It serves as a comprehensive agreement between employers and employees, incorporating all mandatory provisions required by Saudi law while allowing customization for specific roles and industries. The document includes essential terms regarding compensation, benefits, working hours, leave entitlements, and end-of-service benefits, as well as provisions for probation periods and termination procedures. This template should be used when hiring permanent employees in Saudi Arabia, whether they are Saudi nationals or expatriate workers, and must be registered with the Ministry of Human Resources and Social Development.

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

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

3. Definitions: Key terms used throughout the contract

4. Appointment and Term: Position title, duties, effective date, and permanent nature of employment

5. Probation Period: Duration and terms of the probationary period (maximum 90 days under Saudi law)

6. Duties and Obligations: Employee's responsibilities, reporting lines, and work standards

7. Place of Work: Primary workplace location and potential for transfer

8. Working Hours: Standard working hours, breaks, and overtime provisions

9. Compensation: Base salary, payment frequency, and method of payment

10. Benefits and Allowances: Mandatory benefits including housing allowance, transportation allowance

11. Annual Leave: Annual leave entitlement and scheduling procedures

12. Sick Leave: Sick leave entitlement and notification requirements

13. Public Holidays: Entitlement to official public holidays

14. Medical Insurance: Health insurance coverage details as per Saudi law

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

16. Termination: Grounds and procedures for contract termination

17. Confidentiality: Protection of company confidential information

18. Governing Law: Confirmation of Saudi Labor Law application