Pre Employment Contract for Saudi Arabia

Pre Employment Contract Template for Saudi Arabia

A Pre-Employment Contract governed by Saudi Arabian law serves as a formal agreement between an employer and a prospective employee, outlining the terms and conditions that will govern their future employment relationship. This document ensures compliance with Saudi Labor Law (Royal Decree No. M/51) and related regulations, including Saudization requirements and social insurance obligations. It addresses crucial elements such as compensation, working conditions, probationary periods, and pre-employment requirements while adhering to Islamic Shariah principles that underpin Saudi Arabian legal framework.

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What is a Pre Employment Contract?

The Pre-Employment Contract is a crucial document used in Saudi Arabia prior to establishing a formal employment relationship. It serves as a preliminary agreement that outlines the terms and conditions of the proposed employment while ensuring compliance with Saudi Labor Law, Saudization requirements, and other relevant regulations. This document is particularly important in the Saudi Arabian context due to the specific requirements for work visas, social insurance registration, and the need to adhere to Islamic Shariah principles. The contract typically addresses key aspects such as compensation, working conditions, and pre-employment requirements, while also considering specific provisions for both Saudi nationals and expatriate workers. It provides legal protection for both parties during the pre-employment phase and sets clear expectations for the formal employment relationship that will follow.

What sections should be included in a Pre Employment Contract?

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

2. Background: Brief context of the proposed employment relationship and purpose of the pre-employment contract

3. Definitions: Key terms used throughout the contract

4. Job Offer: Details of the position being offered, including job title, department, and reporting structure

5. Employment Start Date: Proposed commencement date and any conditions precedent

6. Probationary Period: Length and terms of the probationary period as per Saudi Labor Law

7. Compensation and Benefits: Basic salary, allowances, and other benefits in compliance with Saudi Labor Law

8. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements

9. Pre-employment Requirements: Required documentation, medical examinations, and security clearances

10. Visa and Work Permit: Requirements and responsibilities for obtaining necessary work authorization

11. Confidentiality: Pre-employment confidentiality obligations

12. Governing Law: Confirmation of Saudi Law and Shariah principles as governing law

13. Acceptance and Validity: Terms for accepting the offer and validity period

What sections are optional to include in a Pre Employment Contract?

1. Non-Competition: Used when requiring pre-employment non-compete commitments, subject to Saudi Labor Law restrictions

2. Relocation Terms: Include when the role requires relocation, detailing assistance and arrangements

3. Training Requirements: Used when specific pre-employment training or qualifications are required

4. Medical Insurance: Include for expatriate employees or when offering enhanced medical coverage

5. Housing Allowance: Include when offering housing benefits above standard requirements

6. Education Allowance: Used when offering education benefits for employee's children

7. Transportation: Include when offering specific transportation arrangements or allowances

What schedules should be included in a Pre Employment Contract?

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

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

3. Schedule 3 - Required Documents: List of documents required for employment processing

4. Schedule 4 - Medical Requirements: Specific medical examination and fitness requirements

5. Appendix A - Company Policies: Key company policies that apply during pre-employment period

6. Appendix B - Visa Requirements: Detailed visa and work permit requirements and procedures

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use

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