The Preliminary Employment Contract is a crucial document used in Saudi Arabia when establishing new employment relationships, whether for Saudi nationals or expatriate workers. This document serves as an initial agreement that outlines the fundamental terms of employment before the execution of a final contract. It must comply with Saudi Labor Law (Royal Decree No. M/51) and various ministerial regulations, including those related to Saudization requirements and social insurance obligations. The document typically includes essential information such as job description, compensation, working hours, and basic rights and obligations of both parties, while ensuring alignment with Islamic Shariah principles that underpin Saudi Arabia's legal system. This preliminary contract is particularly important for employers in managing recruitment processes and for employees in understanding their proposed terms of employment before making final commitments.
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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 preliminary contract
3. Definitions: Key terms used throughout the contract
4. Job Description and Duties: Detailed description of the position, role, and primary responsibilities
5. Term and Probation Period: Duration of the contract and probation period as per Saudi Labor Law
6. Compensation and Benefits: Basic salary, allowances, and other benefits in accordance with Saudi Labor Law
7. Working Hours and Days: Standard working hours, days, and overtime arrangements
8. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
9. Obligations of the Employee: Key duties, responsibilities, and conduct requirements
10. Obligations of the Employer: Employer's commitments and responsibilities
11. Confidentiality and Data Protection: Protection of company information and handling of personal data
12. Termination: Grounds and procedures for contract termination
13. Governing Law: Confirmation of Saudi Law application and jurisdiction
1. Mobility Clause: Required if the role may involve relocation or travel
2. Non-Competition: Include if employee will have access to sensitive information or client relationships
3. Training Commitments: Include if specific training requirements or bonds are applicable
4. Commission Structure: Required for sales roles or positions with variable compensation
5. Remote Working Arrangements: Include if role involves any work-from-home or remote working provisions
6. Educational Support: Include if employer provides educational or professional development support
7. Housing Allowance Terms: Required if specific housing benefits are provided
8. Transportation Arrangements: Include if specific transportation benefits or requirements apply
1. Schedule 1 - Detailed Job Description: Comprehensive outline of role 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 applicable to the role
4. Schedule 4 - Required Certifications: List of professional certifications or qualifications required for the role
5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
6. Appendix B - Visa and Work Permit Requirements: Documentation requirements for foreign workers if applicable
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