Permanent Employment Agreement Template for Saudi Arabia

The Permanent Employment Agreement serves as the primary document establishing an ongoing employment relationship in Saudi Arabia. It is used when hiring both Saudi nationals and expatriate employees for indefinite-term positions, ensuring compliance with the Saudi Labor Law and related regulations. The agreement covers essential aspects including compensation, benefits, working hours, leave entitlements, and termination provisions, while incorporating mandatory requirements such as probationary periods, end of service benefits, and social insurance obligations. This document is crucial for maintaining clear employment terms and protecting both employer and employee rights under Saudi jurisdiction.

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

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, employment classification, and commencement date

5. Duties and Responsibilities: Main job responsibilities and reporting relationships

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

7. Working Hours: Standard working hours, rest periods, and overtime provisions as per Saudi Labor Law

8. Probationary Period: Duration and terms of the probationary period (max 90 days under Saudi law)

9. Compensation and Benefits: Base salary, allowances, and other benefits

10. Annual Leave: Annual leave entitlement and rules for taking leave

11. Sick Leave: Sick leave entitlements and notification requirements

12. Public Holidays: Entitlement to official public holidays

13. Social Insurance: GOSI registration and contribution details

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

15. Confidentiality: Obligations regarding confidential information

16. Termination: Grounds and procedures for termination of employment

17. End of Service Benefits: Calculation and payment of end of service benefits

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

19. Language: Specification of controlling language version